> For the complete documentation index, see [llms.txt](https://docs.curvance.com/app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.curvance.com/app/protocol-overview/earn-vaults.md). # Earn Vaults Curvance Earn Vaults turn fragmented lending markets into one clean Earn position. Because that position is tokenized as vault shares, it can also be used in Curvance strategies like looping. Users deposit one supported asset, receive vault shares, and let Curvance route the underlying liquidity across approved lending markets. The user experience stays simple. The vault does the work. **The short version:** * one asset goes in; * one Earn position comes out; * Curvance can move liquidity as market conditions change. * defensive checks help route away from unhealthy markets. **That is the unlock:** users get a simple Earn balance, while Curvance gets a smarter way to keep lending liquidity productive. ### Why It Matters Lending markets move constantly. Borrow demand changes, liquidity enters and leaves, rates shift, and some markets become more attractive than others. Without Earn Vaults, users have to pick a market and keep watching it. Earn Vaults compress that loop into one Curvance-native position, so Curvance can rebalance toward stronger opportunities while still respecting caps, liquidity, pauses, and safety checks. It is yield routing for people who would rather be earning than tab-hopping. ### How It Works Each Earn Vault is built for one underlying asset, such as USDC. Behind that one asset, the vault can hold positions in several approved Curvance lending markets that use the same underlying.
Users hold shares of the Earn Vault. Those shares represent their slice of the total assets deployed across the vault's approved markets. Deposits add assets across the vault's current market mix. Withdrawals pull assets back from that mix when liquidity is available. Rebalances are what change the vault's target liquidity mix. ### Rebalancing Earn Vaults are paired with `OptimizerReader`, which acts like the route planner. The reader looks across an Earn Vault's approved markets and asks: * where is the vault's liquidity right now? * which markets have idle liquidity? * which markets have stronger supply rates? * how much cash, debt, and fees sit behind each market? * which markets are capped, paused, stale, or unsafe to add to? Then it builds a rebalance plan: withdraw from markets that should shrink, deposit into markets that should grow, and keep each market inside its configured allocation limits. The plan also includes tolerance bounds. If the market state changes too far before the transaction lands, the on-chain rebalance can reject the plan instead of executing stale instructions. Small moves can be skipped too, so the system does not churn dust just to look busy. ### Defensive Routing This is where Earn Vaults get especially powerful. The same rebalance system that searches for better yield can also protect the vault from markets that no longer look healthy. `OptimizerReader` checks the collateral side of each approved lending market and can flag a market as bad when either of these conditions appears: * the collateral oracle feed is stale; * the collateral price has breached a configured price guard. The staleness check is a freshness filter. If the oracle has not updated within its allowed heartbeat window, the reader treats that market as unreliable. The price guard is a floor check for bounded collateral assets. If the reported collateral price falls through the configured guard, the reader can treat that market as unsafe for new allocation. When a market is flagged, the rebalance planner excludes it from the ideal allocation. If the market can be exited, the plan can pull liquidity away and redistribute it into the remaining good markets. If the market is redeem-paused, the vault keeps that position frozen instead of pretending stuck liquidity is movable. So in normal conditions, Earn Vaults route for yield. In defensive conditions, they can route away from bad collateral signals. That turns rebalancing into more than APY chasing. It becomes active risk routing. ***Example:*** *Alice deposits 10,000 USDC into a USDC Earn Vault. She does not need to pick between three different USDC lending markets. She receives Earn Vault shares, and Curvance manages the routing behind the scenes.* *Now say one USDC market gets flooded with new liquidity, pushing its supply rate down, while another approved market has stronger borrower demand. `OptimizerReader` can compare the current mix against the better available mix and produce a plan to move liquidity toward the stronger market. Users still hold the same Earn Vault shares.* *Or suppose a collateral oracle stops updating, or a bounded collateral asset breaks through its price guard. The reader can mark the related lending market as bad. The next defensive rebalance can stop treating that market as a target and, when exit conditions allow, move vault liquidity toward healthier markets.* *That is a stronger story than "we chase APY." Earn Vaults can chase yield and watch the road at the same time.* ### Not Blindly Chasing APY Higher APY is not the only input. Each Earn Vault also respects allocation caps. If one market briefly shows the best rate but has a 20% cap, the vault cannot throw everything into it. The post-rebalance allocation must stay at or below the cap. Good routing is not just finding the biggest number. It is finding better yield inside a controlled risk box. ### Withdrawing Bob wants 1,000 USDC back from his Earn Vault position. He does not need to know which markets currently hold the USDC. He redeems from the vault, and the vault pulls liquidity back from approved markets according to the current mix and available liquidity. If a market is paused for redemptions, the Vault prevents early users from withdrawing from only the healthy markets while later users are left bearing the paused one. This is a fairness choice, not just a technical detail. ### Fees An Earn Vault can charge a performance fee on new yield. Fees are measured against a high watermark, so Curvance charges performance fees only when the vault reaches new profit highs. Fees are displayed on each Vault’s page in the app. ### What It Does Not Promise Earn Vaults are powerful, but they are not insurance. APYs can change. Markets can be paused. Liquidity can become limited. A rebalance only executes when authorized Curvance operations trigger it, and only if the on-chain safety checks pass. The point is not to promise the highest possible rate every second. The point is to give Curvance a better system for routing lending liquidity over time while keeping the user experience clean. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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