> ## Documentation Index
> Fetch the complete documentation index at: https://yieldxyz.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# 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.

<CardGroup cols={2}>
  <Card title="Earn fees" icon="dollar-sign">
    Deposit, performance, and management fees enforced at the vault level
  </Card>

  <Card title="Auto-compound" icon="arrows-rotate">
    Incentive tokens automatically claimed, swapped, and reinvested
  </Card>

  <Card title="Abstracted flows" icon="wand-magic-sparkles">
    Smart routing handles swaps, wrapping, and bridging behind the scenes
  </Card>

  <Card title="Unified model" icon="layer-group">
    One integration per yield — normalized APY, balances, and transactions
  </Card>
</CardGroup>

***

## Why OAVs?

<AccordionGroup>
  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>

  <Accordion title="Unified integration model">
    One integration per yield opportunity. Yield.xyz returns balances, APY, and transactions in a normalized format across all chains and strategies.
  </Accordion>

  <Accordion title="Rapid deployment">
    Yield.xyz deploys OAVs for target integrations within days. Custom fee structures and protocol coverage available on request.
  </Accordion>
</AccordionGroup>

***

## 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 |

<Info>
  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.
</Info>

***

## Off-the-Shelf OAVs

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

<Tabs>
  <Tab title="10% Performance Fee">
    **API Key:** `4bea9274-7cef-4e43-995b-f35147469ede`

    10% performance fee on realized profits. Ideal for competitive consumer apps.
  </Tab>

  <Tab title="20% Performance Fee">
    **API Key:** `e35de2d4-93e2-4cf8-b016-b0838fec1f20`

    20% performance fee on realized profits. Common for institutional or B2B use cases.
  </Tab>
</Tabs>

### 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  |

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

***

## Integration Options

<Tabs>
  <Tab title="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
  </Tab>

  <Tab title="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
  </Tab>
</Tabs>

### 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     |

***

## 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`

***

## Smart Routing

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

<AccordionGroup>
  <Accordion title="Wrapping native assets">
    Native coins (ETH, POL) are automatically wrapped to ERC-20 equivalents (WETH, WPOL) during deposit.
  </Accordion>

  <Accordion title="Token swaps">
    If the vault requires a different token, Smart Routing swaps via DEX aggregators (0x, 1inch) for optimal rates.
  </Accordion>

  <Accordion title="Cross-chain bridging">
    For cross-chain strategies, assets are bridged automatically via LI.FI or native bridges.
  </Accordion>
</AccordionGroup>

***

## Security & Audits

<CardGroup cols={2}>
  <Card title="Zellic Audit" icon="shield-check">
    FeeWrapper and base vault contracts audited by Zellic

    [View Report →](https://github.com/Zellic/publications/blob/master/StakeKit%20FeeWrapper%20-%20Zellic%20Audit%20Report.pdf)
  </Card>

  <Card title="Cantina Audit" icon="shield-check">
    Latest OAV audit: 0 critical, high, or medium issues
  </Card>
</CardGroup>

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

***

## 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`

***

## Next Steps

<CardGroup cols={2}>
  <Card title="OAV v3 (Production)" icon="circle" href="/documentation/oavs/oav-v3">
    Single-strategy vaults with auto-compounding
  </Card>

  <Card title="OAV v4 (Meta Vaults)" icon="layer-group" href="/documentation/oavs/oav-v4">
    Multi-strategy allocation and dynamic rebalancing
  </Card>

  <Card title="Fees" icon="percent" href="/documentation/core-concepts/fees">
    Fee configuration details
  </Card>

  <Card title="DeFiKit" icon="chart-line" href="/documentation/kits/defikit">
    Full DeFi integration guide
  </Card>
</CardGroup>