Responsibilities
A vault manager is responsible for maximizing yield for depositors while protecting principal.
Market Curation
Vaults should only accept markets that meet a vault manager's risk review.
Adding markets that are vulnerable to manipulation can result in the loss of user funds.
Market Caps
Market caps determine the maximum amount of vault liquidity to be deposited into a specific market.
Caps should reflect the on-chain liquidity of the collateral token that can borrow the vault's deposits to facilitate liquidations, collateral's economic and smart contract risk, and more.
Reallocation
Reallocation is the movement of vault liquidity from one market to another.
Reallocations should be executed to:
- Maximize yield for depositors
- Minimize exposure to risky markets
Role Assignment
Vault managers assign roles that can execute certain functions within the vault. Vault owners are responsible for understanding each role's function and assigning it appropriately.