Allocation Logic & Safety

Metavaults in Aurelia are engineered for automated, risk-aware capital deployment across multiple yield strategies. The system ensures performance optimization, capital preservation, and real-time responsiveness to market conditions.

Allocation Logic

  • Initial Allocation User deposits are immediately split:

    • ~90% is routed to pre-approved yield strategies via the Strategy Router.

    • ~10% is retained in a vault buffer for fast withdrawals and DEX swap liquidity.

  • TWAP-Based Rebalancing Strategies are ranked using a 1-hour TWAP APR calculation. This guards against flash volatility and encourages sustainable yield pursuit. Rebalancing is triggered when:

    • Buffer drops below 5% → pulls funds from the lowest APR strategy .

    • Buffer exceeds 15% → deploys idle funds into the highest APR strategy until strategy cap is reached.

  • Strategy Selection Factors

    • Real-time APR (TWAP)

    • Risk flag (e.g. volatility, protocol maturity)

    • Liquidity and slippage profile

    • Governance-assigned weightings or caps

  • Smart Rebalancer The Strategy Router selects only one strategy per rebalance cycle for optimal gas efficiency. Rebalancing frequency is configurable and will be restricted to specific roles (e.g. keeper, multisig)

Capital Safety

  • Strategy Whitelisting Only pre-approved, governance-whitelisted strategies can receive Metavault allocations. Each strategy must pass risk review.

  • Allocation Caps & Rate Limits Each strategy has hard caps and rate-limiters to prevent sudden overexposure.

  • Withdrawal Pathing When buffer is low and withdrawals exceed the reserve:

    • Funds are pulled proportionally from multiple strategies (gas-efficient batching).

    • In practice, the system prefers withdrawing from the lowest APR source.

    • Afterward, a rebalance is triggered to restore the 10% buffer if buffer drops <5%.

  • Real-Time NAV Updates Vaults track their Net Asset Value per share and sync it with oracles for pricing, accounting, and redemption accuracy.

  • Oracle Guards Every rebalance, deposit, or withdrawal is guarded by:

    • TWAP checks

    • Slippage constraints

    • NAV timestamp sync

    • Oracle discrepancy circuit breakers

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