ON–346: Re7 Vaults 🔐

📝 Editor’s Note:

In the broadest sense, vaults are places where users put their capital when seeking an outsized, risk-adjusted return. People started applying the term when Yearn Finance kicked off "DeFi Summer" in 2020. Yearn vaults were complicated under the hood — they involved providing liquidity in DEXs, farming CRV rewards, and more.

Vaults have come a long way since, and there's been a resurgence as lending protocols like Morpho, Euler and Kamino, have allowed for customized vault creation for financial curators. These vaults enable sophisticated curators to transparently lend out users' deposited assets to borrowers while maximizing yield through market selection.

For example, a curator might allocate deposited USDC to borrowers across collateralized ETH, WBTC, and stETH, depending on the best risk-adjusted rates.

Today we're zooming in on one such curator, Re7 Labs, to get a view of the vault curator's onchain latest.

– ON Editorial Team

Re7 Capital is a DeFi centric investment company which has been providing liquidity in DeFi since 2019 by deploying capital across yield strategies as well as liquid venture investing.  Its innovation arm, Re7 Labs, is focused on onchain risk curation, vault management, and DeFi ecosystem design.

• Re7 Labs is curating vaults across all major lending protocols, like Morpho, Euler, Silo, Mellow, and Kamino, while managing over 100 pools on 14 chains. Re7 launched its first vault on Morpho in February 2024 where its rapid growth has been driven by sustained yields. The average deposit APY across pools, vaults, and managed strategies now sits at 8.94%.

• Re7 crossed $550M of TVL in mid-May, placing it among the top five DeFi curators globally. Euler accounts for 33% of all vault TVL, Mellow sits at ~28% via the rstETH restaking vault alone, and Turtle Club with 17%, and Morpho sits at ~10% of the share. Euler’s share has grown the fastest since April, growing from $50M in April to $180M today, with an outsized growth in the Avalanche cluster.

• Re7’s largest vault is the Mellow restaking pool in collaboration with P2P, Symbiotic, and Gearbox Protocol, as users search for higher yields than pure staking. With over $120M —38k wstETH— Re7 curates delegations to get the best risk-adjusted restaking returns. The team evaluates the Symbiotic networks’ slashing, incentives, and real-yields to generate a balanced portfolio. P2P acts as the operator, running the restaking hardware, and Gearbox facilitates leveraged deposits into the vault.  Depositors are seeking additional yields in addition to their staking yields by securing these new networks.

• On Apr. 9, Re7 launched Euler curated pools on Avalanche, and quickly became the largest curator across the cluster. Re7 has consistently managed twice the value of any other curator. The firm has also managed at least 66% of the deposit and borrow volume every day since launch.

• Re7’s Euler cluster surpassed $200M in deposits in just a few weeks. Currently, there are 12 deposit asset pools supported with over $150M in TVL across the pools and $117M borrowed. USDC and AUSD lead total TVL across the board with $68M and $47M deposited.

• Utilization has stayed near max borrowing capacity, or an average of 90%, across Euler's Avalanche deployment of USDC, AUSD, USDT, and deUSD stable pools, which signals both borrower demand and Re7’s ability to price yield efficiently in dynamic markets. Base supply rates in these pools range from 5.75% to 9%, with Re7 yields averaging the highest of available curators.

• Re7 became the first to curate Blackrock and Securitize's sBUIDL token on Avalanche's Euler cluster, marking the first time this permissionless DeFi T-Bill token was available for collateralized lending. sBUIDL holders can now use their short-term Treasury yielding token as collateral to borrow USDC, USDT, AUSD, or deUSD through Re7's curation. Holders of sBUIDL can also collateralize deUSD, or stake that and receive sdeUSD for additional composability with $30M of the three assets deposited.

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