OAV Overview

Optimized Allocator Vaults — smart contract wrappers for DeFi yield with built-in monetization and compounding

What are OAVs?

Optimized Allocator Vaults (OAVs) are ERC-4626 compliant smart contracts that wrap third-party DeFi strategies to enable automatic compounding, configurable fee logic, and seamless integration. They allow partners to monetize existing DeFi opportunities, simplify complex user experiences into single-token flows, and increase APY through automated compounding.

OAVs feature an advanced True APY (TAPY) calculation, providing accurate yield metrics by incorporating real-world factors such as token conversions, market slippage, and compounding frequency. Additionally, OAVs support flexible withdrawal options like conditional cooldowns, robust risk management, and comprehensive governance controls.

Yield.xyz clients can customize their vault configurations by selecting preferred yield strategies and fee structures (performance, management, or deposit fees), and deploy these yield opportunities in their products within days.

Earn fees

Deposit, performance, and management fees enforced at the vault level

Auto-compound

Incentive tokens automatically claimed, swapped, and reinvested

Abstracted flows

Smart routing handles swaps, wrapping, and bridging behind the scenes

Unified model

One integration per yield — normalized APY, balances, and transactions

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Why OAVs?

Earn fees on top of any integrated yield source

OAVs support deposit, performance, and management fees, enforced at the vault level and visible on-chain. Partners earn from day one without building custom fee logic.

Incentive token reinvestment

Vaults automatically claim, swap, and reinvest incentive tokens (e.g., protocol rewards like MORPHO, COMP), so the displayed APY reflects actual yield.

Abstracted transaction flows

Smart Routing handles swaps, wrapping, and bridging behind the scenes. You only need to call a single endpoint to generate the full flow.

Unified integration model

One integration per yield opportunity. Yield.xyz returns balances, APY, and transactions in a normalized format across all chains and strategies.

Rapid deployment

Yield.xyz deploys OAVs for target integrations within days. Custom fee structures and protocol coverage available on request.

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OAV Versions

Version	Status	Key Capabilities
v3	Production	Single-strategy, auto-compounding, full fee support, incentive reinvestment
v4	Production	Multi-strategy (Meta Vaults), dynamic rebalancing, offchain optimization, advanced portfolio management

OAV v3 is the current production standard for single-strategy vaults. OAV v4 (Meta Vaults) extends the model with multi-strategy allocation and dynamic rebalancing.

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Off-the-Shelf OAVs

Pre-deployed OAVs with standardized fee structures are available for immediate testing:

10% Performance Fee

API Key: 4bea9274-7cef-4e43-995b-f35147469ede

10% performance fee on realized profits. Ideal for competitive consumer apps.

20% Performance Fee

API Key: e35de2d4-93e2-4cf8-b016-b0838fec1f20

20% performance fee on realized profits. Common for institutional or B2B use cases.

Available Yields

Yield ID	Name	Protocol	Network
ethereum-usds-susds-...-4626-vault	USDS Sky Savings Rate	Sky	Ethereum
ethereum-usdc-aave-v3-lending	USDC Aave Lending	Aave	Ethereum
ethereum-usdt-aave-v3-lending	USDT Aave Lending	Aave	Ethereum
ethereum-usde-ethena-staking	Ethena USDe Staking	Ethena	Ethereum
ethereum-usdc-gtusdc-...-4626-vault	Gauntlet USDC Prime Vault	Morpho	Ethereum
ethereum-usdc-fusdc-...-4626-vault	Fluid USDC Vault	Fluid	Ethereum
base-usdc-aave-v3-lending	USDC Aave Lending	Aave	Base
base-usdc-smusdc-...-4626-vault	Seamless USDC Vault	Morpho	Base
arbitrum-usdc-aave-v3-lending	USDC Aave Lending	Aave	Arbitrum
optimism-usdc-aave-v3-lending	USDC Aave Lending	Aave	Optimism
polygon-usdc-aave-v3-lending	USDC Aave Lending	Aave	Polygon

Custom OAVs with tailored fee structures or protocol coverage are typically deployed within 24 hours.

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Integration Options

Option 1: Direct Contract (fastest)

Route deposits and withdrawals directly to deployed OAV contracts. These are ERC-4626-compliant and compatible with existing on-chain infrastructure.

• Use deposit() and withdraw() or redeem() methods
• Vaults accept the same stablecoin assets (e.g., USDC, USDT, sUSDe)
• Smart contract addresses and ABIs are provided by Yield.xyz

Timeline: 1–2 days

Option 2: Yield.xyz API (most user-friendly)

Use the full Yield.xyz API to seamlessly enable and manage multiple OAVs, show rich metadata, streamline deposits, withdrawals, unified balances and pending actions.

• /v1/actions/enter and /v1/actions/exit return ready-to-sign transactions
• Transactions include any required approval, wrap, swap, or bridge steps
• /v1/yields for metadata, APY, TVL, and more
• /v1/yields/balances for user positions

When enabled, migration prompts appear within the /balances payload — allowing partners to guide users toward upgrading their yield flow while maintaining optionality.

Timeline: 1–2 days

API Endpoints

Endpoint	Purpose
GET /v1/yields	Discover vaults, APY, TVL
POST /v1/yields/balances	Fetch user positions (including OAVs)
POST /v1/actions/enter	Generate deposit transaction flow
POST /v1/actions/exit	Generate withdrawal transaction flow
POST /v1/actions/manage	Generate migration or claim flows

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Core Vault Mechanics

Deposits

1. User deposits ERC-20 tokens into the vault
2. Vault allocates to the underlying strategy (v3) or strategies (v4)
3. User receives vault shares representing their ownership
4. Deposit fees (if configured) are deducted as shares minted to fee recipient

Withdrawals

1. User redeems vault shares
2. Vault withdraws from underlying strategy
3. Assets returned to user, shares burned
4. Any cooldowns (e.g., Ethena 7-day) are handled automatically

Fee Collection

Fees are collected during harvest():

• Performance fees: Calculated on realized profits since last harvest
• Management fees: Accrued continuously based on AUM and elapsed time
• Fees are minted as new vault shares to the configured feeRecipient

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Smart Routing

OAVs include Smart Routing that automatically converts deposit assets to match vault requirements:

Wrapping native assets

Native coins (ETH, POL) are automatically wrapped to ERC-20 equivalents (WETH, WPOL) during deposit.

Token swaps

If the vault requires a different token, Smart Routing swaps via DEX aggregators (0x, 1inch) for optimal rates.

Cross-chain bridging

For cross-chain strategies, assets are bridged automatically via LI.FI or native bridges.

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Security & Audits

Zellic Audit

FeeWrapper and base vault contracts audited by Zellic

View Report →

Cantina Audit

Latest OAV audit: 0 critical, high, or medium issues

• Funds are strictly limited to whitelisted strategies
• No direct access to user assets — minimally trusted architecture
• Self-custodial design preserves user control

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Getting Started

Typical Onboarding Flow

1. Identify existing yield strategies (e.g., Morpho USDC, Ethena sUSDe)
2. Yield.xyz deploys OAVs for each target integration
3. Begin routing new deposits via direct contract or integrate the Yield.xyz API to handle all interactions
4. (Optional) Enable migration flows and incentives via /actions/manage

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Next Steps

OAV v3 (Production)

Single-strategy vaults with auto-compounding

OAV v4 (Meta Vaults)

Multi-strategy allocation and dynamic rebalancing

Fees

Fee configuration details

DeFiKit

Full DeFi integration guide