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Core Concepts

Current Phase: Shadow Mainnet Testing

Multyr contracts are deployed on Arbitrum One. The system is currently in validation phase. Deposits are not open to the public. Behavior described on this page reflects the protocol's designed behavior; some mechanisms are active in shadow testing, others become active at public launch. See the Status page for details.

This page explains the core primitives required to understand and integrate with Multyr.

Vault (ERC-4626)​

The CoreVault is the central contract.

It:

  • accepts deposits (USDC)
  • issues shares
  • tracks total assets
  • manages withdrawals

Shares vs Assets​

  • Assets → underlying USDC
  • Shares → user ownership in the vault

Value is derived from:

share price = totalAssets / totalSupply

Yield is reflected as an increase in share price.

Deposit Flow​

  1. user deposits USDC
  2. vault mints shares
  3. shares represent proportional ownership

Deposits may be blocked if:

  • oracle data is stale
  • NAV is outdated

Withdrawals​

Withdrawals are not always purely synchronous. The protocol exposes two user-selectable modes plus an emergency path.

Instant Exit​

  • uses available liquidity in the buffer
  • subject to per-epoch caps and limits
  • applies instant withdrawal fee (1.25% total = 0.25% base + 1% penalty)
  • falls back to queued settlement if liquidity is insufficient

Standard Exit (Queued)​

  • used when instant liquidity is not required or not available
  • shares are escrowed and settled at the end of the epoch
  • applies standard withdrawal fee (0.25%)

Force Withdrawal (Emergency Path)​

Force Withdrawal is not a user-selectable mode in the UI. It is a strategy-conditional emergency path available when normal exit paths are constrained, with a variable fee depending on underlying strategy conditions. See Emergency Procedures for details.

Buffer System​

Liquidity is managed in two layers:

Hot Buffer​

  • immediate liquidity
  • used for instant withdrawals

Warm Buffer​

  • intermediate liquidity layer
  • used to replenish hot buffer
  • interacts with adapters

Strategy Layer​

Capital is allocated across multiple strategies.

Each strategy:

  • is connected via an adapter
  • exposes yield and liquidity characteristics
  • is subject to allocation constraints

Allocation Logic​

Capital allocation is dynamic and based on:

  • yield (APY)
  • liquidity
  • risk score
  • stability (EMA-based)

Rebalancing​

Rebalancing:

  • redistributes capital across strategies
  • is triggered periodically
  • only executes if net benefit > cost

Fees​

Fees are applied at the protocol level:

  • deposit / withdrawal fees
  • performance fees (HWM-based)

Fees are routed to:

  • treasury
  • operations
  • safety reserve

Oracle Layer​

Pricing is enforced via:

  • Chainlink feeds
  • staleness checks
  • optional secondary validation

Deposits depend on valid pricing. Withdrawals remain available even under oracle degradation.

Key Properties​

Multyr is designed to guarantee:

  • solvency
  • bounded risk
  • deterministic accounting
  • graceful degradation under failure

Summary​

To integrate correctly, developers must understand:

  • shares vs assets
  • async withdrawal model
  • buffer-based liquidity
  • dynamic strategy allocation

These concepts define all interactions with the protocol.