Brink x Lendle

Brink vaults in Lendle

Overview

Brink vaults are ERC-4626–style yield products that accept a single base asset and deploy it into an allow-listed set of yield markets on the same network. Depending on the chain, those markets may be different pools within one protocol or single/pooled markets across multiple protocols. The vault holds only supply-side positions and periodically reallocates across approved markets to target the best net APY within the same risk class. Users interact with a single contract for deposits and withdrawals, while the allocator handles market selection and rebalancing.

Focus and strategy

Each vault targets a single base asset and a predefined, allow-listed set of markets on the same network where that asset can be supplied. The goal is to maximize forward net yield - combining supply APY and eligible incentives - while keeping funds within the approved markets and within configured risk limits.

How the system works

A Brink vault issues and redeems shares that represent each investor’s proportional claim on the vault’s assets and earnings. An allocator sets target weights for approved markets and rebalances only when the expected gain justifies the change. Connectors handle safe deposits and withdrawals at each market and provide read-only data on balances, status, limits, and caps. View functions aggregate this information so interfaces can display TVL, share price, per-market allocation, historical and projected APY, and estimated exit liquidity.

User experience

When a user deposits the base asset, the vault mints shares and keeps a small idle buffer to make redemptions easy. The allocator then supplies the rest to one or more approved markets based on current targets. On withdrawal, the vault pays out from the idle buffer first, if more is needed, it unlocks funds from market positions - either proportionally across markets or from the most liquid positions first. The user always receives the same base asset they deposited, and funds stay on the vault’s network and within the allow-listed markets.

Allocation and rebalancing logic

The allocator constantly reviews each approved market using on-chain data and performance signals. It looks at factors such as supply APY, active rewards, utilization, liquidity depth, gas and withdrawal costs, market caps, and safety indicators to estimate future net yield. When a different market is expected to perform significantly better, or when allocations drift too far from their targets, the allocator rebalances by moving funds from lower-performing to higher-performing markets. All rebalances follow set limits, caps, and liquidity buffers to minimize unnecessary movement and market impact.

Risk management

The vault can be paused at the strategy or market level and operates only with an allow-listed set of markets and assets on the same chain. Circuit breakers watch for abnormal share-price changes and large TVL swings. Connectors verify market status before acting and will not allocate to paused, capped, or ineligible destinations. Because exposure is limited to one base asset and to approved markets on a single network, the risk surface stays narrow and auditable.

Accounting and fees

The share price includes all yield, incentives, costs, and any configured fees, so returns compound automatically - no manual claiming needed. TVL is the total of all market balances plus the idle buffer. If fees are enabled, management fees accrue steadily over time, and performance fees apply only to gains above a high-water mark; both are built into the changing share price.