How Multyr Works
Multyr routes user capital through structured vaults into external DeFi opportunities, using predefined strategies and allocation rules.
The system separates capital input, allocation, and rebalancing over time.
1. Deposit
Users deposit assets into a Multyr vault.
Each vault represents a strategy container with predefined rules and constraints. Depending on the selected vault, users can:
- Gain direct exposure to a single strategy
- Delegate allocation across multiple strategies
2. Capital Allocation
Once deposited, capital is allocated across a set of eligible opportunities. These may include:
- Lending markets
- Leveraged positions
- Delta-neutral strategies
- Other structured yield sources
Allocation is not discretionary.
Each vault defines:
- Which strategies are allowed
- How much capital can be allocated to each
- Under what conditions allocation can change
3. Strategy Constraints
Every vault operates within a defined constraint framework. This may include:
| Constraint | Description |
|---|---|
| Maximum exposure per strategy | Hard cap on capital allocated to any single strategy |
| Protocol-level allocation limits | Limits on total exposure to a given protocol |
| Liquidity requirements | Minimum liquidity thresholds that must be maintained |
| Execution thresholds | Conditions that must be met before any action is taken |
These constraints define the boundaries of the system, ensuring that allocation decisions remain consistent and controlled.
4. Rebalancing
Over time, the system may adjust allocations. Rebalancing is triggered by:
- Changes in yield conditions
- Shifts in liquidity
- Strategy-specific conditions
Rebalancing is not continuous.
It is executed only when conditions meet predefined criteria, taking into account:
- Transaction costs
- Slippage
- Potential yield impact
5. Yield Generation
Multyr does not generate yield directly. Yield is produced by the underlying protocols and strategies where capital is allocated.
The role of Multyr is to structure how capital is allocated across strategies under predefined rules and constraints.
The system does not make discretionary decisions. Capital is routed and redistributed according to deterministic logic encoded in smart contracts.
6. Withdrawals
Users can withdraw their share of the vault at any time, subject to underlying conditions.
Withdrawals depend on:
- Liquidity of underlying positions
- Current allocation state
In some cases, positions may need to be partially or fully unwound before withdrawal is completed.
System Behavior Over Time
Multyr is designed to operate over time rather than as a static position. This means:
- Allocations may change
- Exposure may shift between strategies
- Yield may vary depending on conditions
Users should expect variability based on market dynamics and system behavior.
Execution Environment
Multyr is currently deployed on Arbitrum.
The system is designed to support deployment across multiple chains, including additional Layer 2 networks and Ethereum.
Multi-chain expansion is implemented through separate deployments rather than a single cross-chain vault.
Each deployment operates independently, with its own liquidity, strategies, and parameters.
Key Trade-offs
Multyr introduces trade-offs that users should consider:
| Allocation Efficiency vs Simplicity | More sophisticated allocation requires more complex system behavior |
| Rebalancing vs Cost | Adjusting positions incurs transaction costs and potential slippage |
| Diversification vs Concentration | Spreading capital reduces single-strategy risk but may dilute returns |
| Liquidity vs Yield | Higher-yielding positions may have lower liquidity for withdrawals |
These trade-offs are bounded by strategy design and constraints, not eliminated.
Multyr should be understood as a structured allocation system, not a passive or fixed-yield product.