User's USDC is used to buy Pendle PT tokens, which are then supplied as collateral on Morpho. The vault borrows stablecoins against said collateral and uses them to buy more Pendle PT tokens in order to repeat the process and perform "Looping". The vault is able to arbitrage the interest rate difference between PT tokens and Morpho's borrowing rates and profit at scale.

Note: Users may not be able to opt out of the vault at any time. Unwinding PT tokens before their expiry date comes with significant fees, therefore will only rarely be done. It is expected that users who wish to withdraw will do so around PT token's expiry date. After new users deposit, their funds will not immediately be put to work. In that period, any user wishing to withdraw will be able to do so up to the available amount in the vault.

Looped USDC

The user's USDC.e and EURC.e are deposited into Shadow Concentrated Liquidity Pool, where they earn gauge rewards. Periodically the gauge rewards are claimed and are then swapped into more USDC.e and EURC.e. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

USDC.e/EURC.e

The user's USDC.e and WETH are deposited into Shadow Concentrated Liquidity Pool, where they earn gauge rewards. Periodically the gauge rewards are claimed and are then swapped into more USDC.e and WETH. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

USDC.e/WETH

The user's wS and USDC.e are deposited into Shadow Concentrated Liquidity Pool, where they earn gauge rewards. Periodically the gauge rewards are claimed and are then swapped into more wS and USDC.e. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

wS/USDC.e

The user's wS and WETH are deposited into Shadow Concentrated Liquidity Pool, where they earn gauge rewards. Periodically the gauge rewards are claimed and are then swapped into more wS and WETH. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

wS/WETH

The user's USDC and cbBTC are deposited into the Uniswap Concentrated Liquidity pool to earn trading fees. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

cbBTC/USDC

The user's WETH and cbBTC are deposited into the Uniswap Concentrated Liquidity pool to earn trading fees. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

WETH/cbBTC

The user's WETH and MORPHO are deposited into the Uniswap Concentrated Liquidity pool to earn trading fees. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

WETH/MORPHO

The user's WETH and USDC are deposited into the Uniswap Concentrated Liquidity pool to earn trading fees. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

WETH/USDC

The user's USDC.e and WETH are deposited into the Uniswap Concentrated Liquidity pool to earn trading fees. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

The user's wS and USDC.e are deposited into the Uniswap Concentrated Liquidity pool to earn trading fees. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

The user's wS and WETH are deposited into the Uniswap Concentrated Liquidity pool to earn trading fees. A rebalancer monitors the underlying price and based on market conditions performs rebalancing. After each rebalance, two positions are created, making sure all of the funds are utilized.

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