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Savings vault yield is not generated by a single source. Each vault’s curator allocates deposited capital across a defined set of yield sources, balancing return potential against liquidity requirements and risk parameters. Understanding these sources helps you assess the quality, sustainability, and risk profile of a vault’s yield before depositing.

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Yield Source Categories

The primary yield source for most Synclear savings vaults is the interest spread earned from capital deployed into Synclear credit pools. The vault acts as a liquidity provider to one or more pools; borrower interest payments flow back to the vault, net of the protocol’s origination fee. This yield source is directly correlated with credit pool utilization and borrower repayment performance.Credit pool allocations expose the vault to underlying borrower credit risk. The vault’s risk parameters (maximum allocation per pool, maximum allocation per borrower, minimum collateralization requirement) constrain how much exposure the curator can take on.
A portion of vault capital may be allocated to on-chain liquidity facilities — for example, stablecoin AMM pools or money market protocols — where it earns fee income. These allocations are typically short-duration and highly liquid, serving as the liquidity buffer for instant-withdrawal vaults. Fee income from these sources is generally lower than credit pool yield but provides withdrawal liquidity and return diversification.
Synclear’s protocol treasury distributes a portion of platform fee revenue to savings vaults that meet defined TVL and utilization thresholds. This yield-sharing is variable and depends on protocol-level activity. It supplements, but does not replace, the primary yield sources above. Treasury yield-sharing parameters are governed by Synclear governance and are disclosed in the vault’s detail page when applicable.

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The Curator Role

Each savings vault is managed by a designated curator — either Synclear’s internal allocations team or a vetted third-party asset manager. The curator is responsible for:
  • Setting and adjusting the vault’s allocation strategy within governance-defined risk parameters
  • Monitoring credit pool utilization, collateral health, and borrower performance
  • Rebalancing allocations to maintain target liquidity levels and optimize risk-adjusted yield
  • Disclosing material changes to vault strategy to depositors via the vault’s activity feed
Curator addresses and entity disclosures are displayed on each vault’s detail page. Curators cannot withdraw deposited capital to arbitrary addresses — all movements are constrained to allowlisted yield source contracts by the vault’s smart contract logic.

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Rebalancing

Curators rebalance vault allocations in response to changes in credit pool utilization, withdrawal queue depth, yield differentials across sources, and risk signals. Rebalancing transactions are on-chain and visible in the vault’s transaction history. Rebalancing frequency varies by vault type: Depositors do not need to take any action during rebalancing. Share price reflects the updated allocation value after each harvest.

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Yield Reporting

Vault performance is reported on the vault’s detail page with the following metrics:
  • Trailing 7-day APY — annualized yield based on the most recent seven days of harvests
  • Trailing 30-day APY — smoother signal, less sensitive to short-term fluctuations
  • Allocation breakdown — current percentage of vault capital deployed to each yield source, updated on every rebalance
  • Historical yield chart — daily APY over the vault’s lifetime
All figures are derived from on-chain data and are independently verifiable. Synclear does not publish projected or forward-looking APY figures.
Before depositing, open the vault’s Allocation Breakdown tab to see exactly where capital is deployed. A vault with high concentration in a single credit pool or borrower carries more idiosyncratic risk than one with diversified allocations. This breakdown updates on every rebalance and is the most direct signal of the vault’s current risk posture.