MegaVault

This page explains how MegaVault works, how USDmY is meant to be used across the ecosystem, and how the partner fee-share program works.

If you are holding USDm and want it to earn yield, MegaVault is the default product.

MegaVault is a USDm vault that mints USDmY. USDmY is a yield-bearing receipt token that represents your share of the vault.

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What MegaVault is (and what it is not)

MegaVault is an opt-in vault product.

• It does allocate USDm across conservative venues to earn yield.

• It is not an Avon strategy.

• It is not the Avon order book.

Avon (the lending protocol) keeps lender liquidity inside the strategy the lender chose. Strategies do not move capital on behalf of lenders, and Avon does not rebalance funds across strategies.

MegaVault is the separate product for users who want a single USDm position that earns yield automatically.

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How it works

Step 1: deposit USDm

Users deposit USDm into MegaVault from any app or frontend and receive USDmY in return.

Step 2: the vault allocates liquidity

MegaVault distributes deposits across MegaETH ecosystem projects to capture yield opportunities while aiming to maintain safety and transparency.

This allocation is not limited to Avon strategies. Avon markets can be one venue, but MegaVault can also allocate into other “safe” venues across MegaETH.

Step 3: hold USDmY, earn yield, stay composable

Users hold USDmY to earn yield, and USDmY is designed to be usable across other DeFi projects.

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USDm vs USDmY

USDm

USDm is the stable settlement asset. It is the simplest form to hold and transfer.

USDmY

USDmY is the yield form.

• It represents a share of MegaVault

• It accrues yield automatically from the vault’s underlying allocations

• It is intended to remain composable across the ecosystem (collateral, yield legs, integrations)

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Where yield comes from?

MegaVault yield comes from the venues the vault allocates into.

Examples (illustrative, not exhaustive):

• onchain credit markets (including Avon markets)

• onchain treasuries / conservative yield primitives

• structured liquidity strategies with conservative caps

MegaVault is designed to deploy into “safe” venues, but it is still onchain and cannot be risk-free.

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Allocation policy and risk process

MegaVault adds venues gradually.

Each venue should ship with:

• clear description of what the venue is and how it earns yield

• conservative caps (per venue and per route)

• monitoring and disclosure of changes

• an explicit process for pausing or reducing exposure if risk changes

MegaVault is opt-in. Depositing means you are choosing this allocation behavior.

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Fees (performance fee)

MegaVault uses a performance fee model.

• fees are charged on yield (not on principal)

• fees apply only when users earn yield

Any change should be disclosed in this documentation and in the UI.

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Risks and withdrawal expectations

MegaVault is designed to be conservative, but it still carries:

• smart contract risk

• integration risk from the venues it allocates into

• liquidity risk (withdrawals depend on underlying venue liquidity)

Withdrawals can be fast in normal conditions and slower when underlying liquidity is constrained.

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Partner performance-fee sharing

MegaVault is designed to be distributed through the MegaETH ecosystem.

Whitelisted partners that integrate MegaVault in their UI or product can receive a portion of MegaVault’s performance fee.

This is for:

• wallets

• frontends

• yield protocols integrating USDmY as a yield leg

• aggregators and routers

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