Vaults Features
Information on Lite Vaults v2
Fluid Lite utilizes stETH, wstETH and weETH (tokenized staking deposits on Ethereum that earn daily staking rewards) as well as yield bearing stablecoins such as sUSDe , syrupUSDC, syrupUSDT and sUSDai, together with core stablecoins like USDC.
By using these assets as collateral in lending protocols, the vault borrows (ETH for the stETH vault and stablecoins for USD), swaps back instantly, and redeposits looping continuously to leverage and amplify the base yield.
Tokenized Vault Deposits
All deposits into Fluid Lite ETH vaults are tokenized as iETHv2, while USDC deposits are tokenized as fLiteUSD.
These tokens represent your share in the vault and are redeemable for your original deposit plus accrued interest.
ERC-4626 Standard
Fluid Lite vaults utilize the ERC-4626 vault standard. Making the Lite vaults even easier to integrate and utilize across DApps. Looking to integrate Lite vaults? Reach out to us on Discord or Twitter.
Multi-Protocol Strategy
v2 & v3 Vaults can execute leverage strategies across multiple protocols. Lite Vaults deliver the most competitive rates by using multiple protocols.
Vault supported protocols: Compound, Aave V3, Spark, and Morpho.
You can view which protocols are actively in use by the Lite vault in Vault Analytics - Vault TVL by Protocol
Smooth Withdrawal Pool
The Lite Vault utilizes a leveraged strategy, which may limit liquidity availability. However, with enhanced withdrawals and multi-protocol support, funds can be efficiently rebalanced between protocols, leading to smoother withdrawals and higher withdrawal ratios.
Vault Rebalancing
Fluid Lite Vaults will periodically rebalance either automatically or by an assigned role. Rebalancing can move funds to the withdraw pool, rebalance the vault or deleverage under unfavourable market conditions.
Automatic Rebalancing
Lite vaults use an automation server which can under certain circumstances rebalance or unwind the vault to prevent liquidations or to make more withdraws available. Assigned Rebalancers
Lite v2 introduces the 'Rebalancer' role, an on-chain account responsible for executing transactions within the vault. The Rebalancer can refinance and transfer funds between protocols, as well as leverage the vault, all within predefined parameters set by Governance. However, it is important to note that the Rebalancer does not have the ability to withdraw funds from the vault.
Rebalancer Class System (Lite v3 – USD Vault)
To protect fLiteUSD deposits and the leveraged strategies that generate yield, Lite v3 introduces a three-tier permission model.
Each level controls which actions operators can perform on the vault and strategy infrastructure, limiting risk exposure while allowing routine maintenance and rebalancing.
Class 1 - Basic Operations
Deploy idle USDC from the fLiteUSD vault into the default vault (fUSDC)
Refinance positions between protocols
Perform routine, low-risk operations
Class 2 - Standard Operations
Includes all Class 1 permissions, plus actions required to actively manage fLiteUSD strategies across protocols and chains:
Withdraw USDC from the default fUSDC vault when capital is needed
Allocate or remove capital from strategy contracts
Bridge assets across supported chains (Ethereum, Arbitrum, Plasma)
Trigger reconciliation to update the system’s total assets
Class 3 - Full Operations
Includes Class 1 and Class 2 permissions, plus high-privilege actions that directly modify leveraged positions used by fLiteUSD strategies.
Open new leverage positions
Close or deleverage existing positions
Execute swaps required for strategy execution
Update strategy parameters such as rate thresholds or risk limits
These operations directly impact the leverage engine that drives fLiteUSD yield, and therefore require the strictest security controls and governance oversight.
Security Model
Each rebalancer class is assigned to separate authorized addresses (typically multisigs or automated bots). By splitting permissions across tiers, the system minimizes risk exposure - for example, a compromised Class 1 rebalancer cannot open leverage positions or withdraw capital.
Learn More
Instadapp Blog: Launching Lite v2
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