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Expected Behavior

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 describes how Multyr behaves under different market conditions.

It is intended to provide a mechanical understanding of the system, rather than performance claims.

Design Principle​

Multyr is designed to:

  • allocate capital dynamically
  • minimize unnecessary churn
  • preserve net yield after execution costs
  • maintain system stability under changing conditions

Scenario 1 — Yield Increases in a Strategy​

Situation​

A strategy (e.g. lending market) offers higher APY compared to others.

Expected Behavior​

  • strategy score increases
  • target allocation shifts toward the higher-yield strategy
  • system evaluates benefit vs cost
  • rebalance executes only if net benefit is positive

Result​

  • capital gradually moves toward higher yield
  • no immediate or aggressive reallocation
  • avoids reacting to short-lived spikes

Scenario 2 — Temporary Yield Spike​

Situation​

A strategy experiences a short-term APY spike (e.g. liquidity imbalance).

Expected Behavior​

  • APY component increases
  • stability component (EMA) penalizes volatility
  • scoring impact is partially dampened
  • benefit/cost gate filters low-conviction moves

Result​

  • system does not chase short-term yield spikes
  • reduces unnecessary rebalancing
  • avoids churn

Scenario 3 — Liquidity Decreases​

Situation​

A strategy becomes less liquid or withdrawal capacity drops.

Expected Behavior​

  • liquidity score decreases
  • withdrawable assets are reduced
  • target allocation shifts away
  • rebalance executed only if feasible

Result​

  • capital gradually exits constrained strategy
  • avoids forced or inefficient exits
  • prioritizes safe execution

Scenario 4 — Strategy Degrades or Fails​

Situation​

A strategy experiences:

  • failures
  • degraded performance
  • abnormal conditions

Expected Behavior​

  • adapter failure counters increase
  • strategy may be quarantined
  • removed from allocation scoring
  • no new capital allocated

Result​

  • system isolates the affected strategy
  • protects new deposits
  • limits further exposure

Scenario 5 — Market-Wide Stress​

Situation​

Multiple strategies experience:

  • reduced liquidity
  • lower yields
  • increased volatility

Expected Behavior​

  • rebalancing activity decreases
  • benefit/cost threshold becomes harder to meet
  • capital remains more static
  • buffer system prioritizes withdrawals

Result​

  • reduced system activity
  • preservation of capital
  • focus on withdrawal availability

Scenario 6 — High Withdrawal Demand​

Situation​

Users request withdrawals exceeding instant liquidity.

Expected Behavior​

  • hot buffer is used first
  • warm buffer is tapped next
  • remaining withdrawals enter queue
  • settlement executed progressively

Result​

  • withdrawals remain available
  • large exits are processed over time
  • system avoids forced liquidation

Scenario 7 — Oracle Issues​

Situation​

Price feeds become stale or invalid.

Expected Behavior​

  • deposits are blocked
  • strategy operations may pause
  • withdrawals remain available
  • fallback mechanisms may apply

Result​

  • system avoids incorrect pricing
  • users retain exit capability
  • protocol degrades safely

Scenario 8 — No Keeper Activity​

Situation​

Automation (keepers) stops operating.

Expected Behavior​

  • maintenance operations slow down
  • queue settlement may be delayed
  • rebalancing stops
  • core functions remain callable manually

Result​

  • system continues operating
  • permissionless calls allow recovery
  • no permanent lock occurs

Core Behavioral Properties​

Across all scenarios, Multyr enforces:

  • no unnecessary rebalancing
  • execution only when beneficial
  • bounded risk exposure
  • graceful degradation under failure

What This Means​

Multyr is not designed to:

  • maximize short-term yield
  • react to every market fluctuation

It is designed to:

→ structure capital allocation over time → operate under real-world constraints → preserve net performance after costs

Summary​

Multyr behaves as a rule-based system, not a reactive one.

Its behavior is defined by:

  • constraints
  • scoring
  • execution gating

rather than discretionary decisions.

This ensures:

→ predictable behavior → reduced operational noise → consistent system performance over time