A Setsuna Earn vault holds one underlying asset across cash and lending positions. Deposit and redemption transactions change the number of shares; lending interest changes the assets backing those shares.
The lifecycle#
- Deposit. Assets enter the vault and shares are minted at the refreshed exchange rate.
- Observe. Public calls record protocol rates at spaced intervals.
- Allocate. The contract computes eligible targets and moves toward them within fixed limits.
- Accrue. Interest in the lending positions contributes to vault value.
- Redeem. Shares are burned and the underlying asset is returned from available liquidity.
The steps are separate. A deposit can remain in cash until an eligible rebalance executes.
The pieces#
| Piece | Purpose |
|---|---|
| Vault | Holds pooled assets and issues ERC-4626 shares |
| Adapter | Connects the vault to one fixed lending destination |
| Share token | Records your proportional claim on the vault |
| Cash buffer | Keeps part of the underlying available inside the vault |
| Rate observations | Store protocol-derived inputs for allocation checks |
| Keeper | Watches the contract and submits eligible public actions |
A transaction has boundaries#
Before changing ownership balances, the vault refreshes its accounting. Deposits and withdrawals check actual token movement. Temporary approvals are cleared after use, and a failed transaction rolls back its state changes.
The keeper is a transaction sender, not a discretionary fund manager. Targets are computed by the contracts, and funds can move only through their fixed adapters.
Separate asset pools#
setsUSDC holds USDC claims. setsMON holds WMON claims and uses a gateway for native MON. The vaults do not swap between those assets or use leverage.
Spot and Perps are separate execution paths in the same app. Learn more about where your funds go.