GLP Neutral (v-WATER)

Overview

v-WATER is the Corresponding Supporting Vault of DILUTED VODKA, which is indeed a USDC Lending Vault.

v-WATER is designed for low-risk USDC holders who are looking for higher returns than pure staking, while still maintaining principal projection. With its innovative reward split mechanism with VODKA, v-WATER offers a unique investment opportunity for those seeking a secure and profitable investment.

Please refer to the detailed reward split ratio here.

Mechanism

v-WATER Vault will provide capital to AAVE to share the collateralized position with VODKA Vault:

1. Supply USDC to AAVE

2. Provide capital for the shorting position establishment in AAVE

3. Receive additional rewards from GLP based on Utilization Rate (UR)

Product Risk

As a USDC low-risk saving vault, the team has executed comprehensive risk mitigation on v-WATER. Those include:

1. AAVE Health Factor Monitoring Bot

2. Slippage Control

3. Rebalance Trigger