# Overview
Dawn Vault is a **validator-native yield vault** on Solana, built by Dawn Labs — an active Solana validator operator.
## Concept
Most DeFi yield vaults sit on top of protocols as users. Dawn Vault starts at the infrastructure layer and extends into DeFi:
```
Traditional Vault: DeFi Protocols → Yield
Dawn Vault: Validator Infrastructure → DeFi Protocols → Yield
```
Validator revenue provides structural alpha unavailable to pure DeFi aggregators:
* **dawnSOL staking rewards** — The long leg of the delta-neutral strategy earns \~7% staking rewards on top of funding rate income
* **Yield Smoothing Reserve** — Validator commission-derived reserve stabilizes APY during unfavorable market conditions (Phase 2)
* **Skin in the Game** — Dawn Labs' own capital deployed under the same conditions as depositors
## Two-Layer Architecture
Every Dawn Vault follows a **Base Layer + Alpha Layer** design:
```
Vault (Single Entry Point)
├── Base Layer — Always-on, stable yield (Multiply / Lending / Staking)
└── Alpha Layer — Conditional, enhanced yield (activated when profitable)
```
The Base Layer ensures depositors always earn yield. The Alpha Layer activates only when market conditions justify the extra complexity.
## Repository Scope
This open-source repository currently contains the **off-chain operator stack** for Dawn Vault:
* Manager bot and risk controls
* AI support services
* Monitoring dashboard
* Backtest tooling
The on-chain vault program, PDA custody layer, adapter programs, deployed addresses, and multisig governance artifacts are **not included in this repository**. Any claim about on-chain custody or admin separation should therefore be read as product architecture, not as something this repo alone can verify.
## Vault Lineup
| | USDC Vault | SOL Vault | BTC Vault |
| --------------- | --------------------------------------------------- | ------------------------ | ------------------------------------------------- |
| **Base Layer** | Kamino Multiply (primary) + USDC Lending (overflow) | Validator Staking (6-7%) | cbBTC Lending (1-3%) |
| **Alpha Layer** | SOL Delta-Neutral (conditional) | LST Loop (10-20%) | cbBTC collateral → USDC borrow → SOL DN (3.5-11%) |
| **Phase** | **Phase 1 (Active)** | Phase 2 | Phase 3 |
## Why Dawn Vault?
| | Dawn Vault | Traditional Aggregators | Manual Strategies |
| ----------------------- | ------------------------------------ | ----------------------- | ----------------- |
| **Yield Source** | Validator infra + DeFi | DeFi only | DeFi only |
| **Risk Management** | Automated with backtested parameters | Varies | Manual |
| **Transparency** | Full yield decomposition | Limited | N/A |
| **Capital Efficiency** | LST-enhanced (dawnSOL) | Standard | Standard |
| **Downside Protection** | Yield Smoothing Reserve | None | None |
**Japan Gateway** — First Japanese-language Vault on Solana. Existing validator delegator base serves as initial TVL source, with full Japanese UI, reporting, and support.
## System Architecture
```mermaid
graph TB
subgraph "User Layer"
U[Depositor] -->|Deposit USDC| UI[Web App]
end
subgraph "On-Chain Layer"
UI -->|Connect Wallet| VP[Vault Program
Deposit / Withdraw / LP / Fees]
VP --> PDA[PDA Authority
Asset Custody / LP Mint]
VP --> AP[Adapter Programs
Protocol Connectors]
end
subgraph "Strategy Execution"
MB[Manager Bot] -->|Rebalance / Hedge| VP
MB -->|Monitor| RM[Risk Manager
Circuit Breaker / Anomaly Detection]
MB -->|Execute| CEX[Perp Integration
Binance / Bulk Trade]
MB -->|Scan| MS[Market Scanner
Pool APY Comparison]
end
subgraph "Risk Scoring"
MRS[Multiply Risk Scorer
4 Dimensions] --> MB
LRS[Lending Risk Scorer
5 Dimensions] --> MB
end
subgraph "DeFi Protocols"
AP --> KM[Kamino Multiply
ONyc/USDC, USDG/PYUSD]
AP --> KL[Kamino Lend]
AP --> Jupiter[Jupiter Lend / Swap]
end
subgraph "Validator Infrastructure"
VS[Dawn Validator] -->|Staking Rewards| dawnSOL[dawnSOL LST]
VS -->|Commission| YSR[Yield Smoothing Reserve]
end
```
### Core Components
| Component | Description |
| -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Vault Program** | On-chain (Voltr SDK): deposits, withdrawals, LP token accounting, fee management, PDA custody |
| **Adapter Programs** | CPI-gated connectors to Kamino (Multiply/Lending) and Jupiter (Lend/Swap). Whitelisted — only approved protocols can access vault assets |
| **Manager Bot** | Off-chain strategy engine: dynamic allocation, market scanning, rebalancing, hedge management, risk monitoring |
| **Risk Scoring** | Multiply Risk Scorer (4-dimension) + Lending Risk Scorer (5-dimension) — see [Risk & Security](https://docs.dawnlabs.tech/dawn-vault/risk-and-security) |
### Security Model
* **Operator Stack in This Repo**: The code here covers monitoring, allocation logic, risk checks, AI support, and dashboard access control.
* **Planned / External Custody Layer**: PDA custody, adapter whitelisting, admin multisig, and locked-profit mechanics belong to the separate on-chain layer and must be verified from deployed program docs and audit material.
* **Production Access Control**: The dashboard and proxy can be protected with `FRONTEND_API_SECRET`, while the bot API requires `API_AUTH_TOKEN` and is intended to stay behind the frontend proxy on localhost.
---
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