Architecture and Vaults

Generally speaking, we have 2 separate types of vaults in V1:

1. LP vault that only accepts and holds LP tokens of a specific dual sided pool. Such vaults hold the LP token for a third party AMM pool. Ie, USDC-USDT on Uniswap. The core function of these vaults is to harvest and compound any rewards obtained by the pooled LP tokens. Users can Zap into the vault using any of the assets used in the underlying pool and Zap out into either of the assets.

2. LP vault that only accepts and holds LP tokens of a specific ‘Single Sided’ pool. i.e., single sided AMM pool such as Curve or a cross chain bridge pool such as Stargate. These vaults also harvest and compound any rewards obtained by the pooled LP tokens contained in the vault. Users can Zap into the vault using the asset used in the underlying pool and Zap out into the same asset.

It can be tedious and complicated for a new user to navigate to the underlying protocol which is offering the pool and deposit liquidity before returning to the vault to deposit the LP token. To allow for a one stop seamless solution for users wishing to deposit directly into the vaults from the asset/assets used in the underlying strategy or withdraw from the vaults into the asset/assets, MRHB's smart contracts will take care of all the necessary steps in between. Each vault will have separate ‘in-between’ activity. This feature is what we refer to as ZAP.

ZAP is essentially the ‘in-between’ activity that facilitates the seamless deposit/withdrawal into the vault.

Generally speaking, the user facing flow and deposit/withdrawal activity for a stable coin vault can be visualized as follows:

Deposit Flow

Withdrawal Flow