2: Single asset vaults

The Single Asset Vaults lending market is Aurelia’s custom-built, purpose-specific system designed for undercollateralized borrowing by whitelisted strategies. This system enables looped yield farming, leveraged LP exposure, and capital-efficient vault strategies — all without requiring each user to borrow directly.

Only a special contract called the LeverageManager (or ZapManager) is permitted to borrow from this market on behalf of users.

Key Mechanics

• Borrowing is restricted to LeverageManager (smart contract)

• Vaults and strategies must be governance-whitelisted

• Credit allocation and risk are defined per strategy

• Debts are tracked per user via internal vault accounting

• Fully integrated with vault share pricing (ERC-4626)

Pool Types Supported

• Volatile + stable LPs (e.g., ETH/USDC)

• Yield-bearing token LPs (e.g., aurUSDC/ETH)

• Pendle principal/token yield pools

• GMX vaults and delta-neutral pools

• Morpho & Euler leveraged strategy vaults

• v2 LPs and concentrated liquidity v3 positions

Risk Control

• Max leverage per strategy (up to 4x on volatile assets, up to 9x on stable assets)

• Vault-level risk flags and oracle guards

• Liquidation thresholds enforced off-chain by bots

• Circuit breakers for share price or NAV manipulation