Locus vaults

Explore Locus.finance diverse range of vaults, offering options from conservative blue chips to hot and trending assets. We provide different narratives to align with your unique investment preferences and goals:

  • xETH vaultTop-tier ETH staking protocols on Ethereum.

  • xDEFI vault Yield-bearing index of major DeFi protocols on Ethereum.

  • xARB vault Real yield narrative with yield farming positions on trending Arbitrum.

  • xUSD vault Multiple yield-bearing stablecoin strategies across multiple networks.

What makes vaults different?

Locus provides pre-made on-chain vaults of intricate DeFi strategies that can be accessed with just one click. This eliminates the need for investors to manage multiple protocols manually.

No active management required

Vaults are perfect for investors looking for “set-and-forget” strategies. The vaults do all the rest of the work, including rebalancing the assets to maintain risk and income levels, harvesting earnings and reinvesting them regularly.

Should any of the strategies within the vault no longer meet the requirements, the Locus team will update the allocation or even promptly seek out a potential replacement with a similar risk and return profile.

Gas optimization

Gas costs associated with the compounding of accumulated rewards are paid by Locus.

Rebalancing

Each Locus vault is not just a set of prepared strategies with a balanced risk and reward profile, the vaults are also built to ensure that over time the vaults remain within a given range of profitability and safety.

Read more about rebalancing here Vault rebalancing explained

How often do vaults reinvest earnings?

To optimize vault performance, the Locus team did some math to figure out how often to collect earned income for each vault. Based on these calculations, each vault will have its own harvesting schedule, which can range from every day to every three months, depending on underlying strategies’ gas consumption and the amount of assets deposited into a vault.

Deposits and withdrawals

Users deposit assets to receive vault tokens — transferable yield-bearing ERC-20 tokens, representing their share of the vault assets.

Deposited funds will be stored in a buffer and will be allocated towards underlying strategies upon harvest.

Withdrawals from the vaults are accessible anytime, except xUSD's Omnichain vault, read more about it here xUSD vault

Withdrawals from vaults are only possible in notional token, read more about notional token here: Vault notional token

Vault notional token

Every vault has one special token that it uses to distribute assets to the underlying strategies and withdraw back from them.

For example, for the xETH vault, the notional token is WETH.

In practice, this means that if you deposit any asset other than WETH, it will be exchanged first for WETH in any case. When it is time to allocate funds to the strategies, your deposited WETH and other users' deposits for that period will be allocated to the underlying strategies.

The notional token is also the currency in which the funds will be stored in the Withdrawal buffer.

It is important to keep in mind the notional token, as deposits and withdrawals will be most cost-effective using this token.

Withdrawal buffer

To optimize gas expenses, a percentage of funds in each vault is allocated toward a withdrawal buffer. Also, all deposits received by the vault will first go into a buffer and then be allocated to the underlying strategies on the day of the harvest.

This buffer allows customers to withdraw funds cheaper, as the gas costs of withdrawing from the buffer will be much less than if withdrawing from multiple strategies.

The buffer is typically set to 5% of total deposited assets.

Vault risks

Since the vault deploys user funds in DeFi protocols, investors are exposed to a variety of smart contracts and are susceptible to potential exploits of the underlying pools.

Read more about risks here Vault risks explained

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