ZenSats Documentation

ZenSats is an ERC4626 vault system that automates collateralized carry trades. You deposit collateral (WBTC, wstETH, or other supported assets), the vault borrows stablecoins through a loan manager, and deploys the borrowed capital into a yield strategy. You earn the spread.

How It Works

1. Deposit collateral: You deposit the vault asset and receive ERC4626 shares.
2. Borrow debt asset: The vault posts collateral in the loan manager and borrows stablecoins at a target LTV.
3. Deploy strategy: Borrowed stablecoins are routed into the active yield strategy (currently: borrow crvUSD on LlamaLend -> LP in Curve crvUSD/USDT pool -> stake in StakeDAO).
4. Permissionless upkeep: Anyone can call rebalance(), harvestYield(), and accrueYieldFees().
5. Redeem shares: Withdraw/redeem burns shares and returns collateral, including unwind logic when needed.

Admin Model (Restricted Powers)

• Owner can tune bounded parameters, toggle idle mode, withdraw protocol fees, and run emergency unwind flows. Cannot swap the loan manager or strategy.
• Gov has a narrow role: swapper contract changes only, via propose/execute/cancel with a 1-week timelock. The vault validates swapper output against oracle pricing.
• No arbitrary user-fund drain path: collateral/debt tokens cannot be rescued via generic rescue function.
• Emergency mode is one-way: once enabled, it cannot be switched off.

Current Live Vaults

• WBTC LlamaLend + StakeDAO (wbtc-llamalend) — borrow crvUSD, earn in crvUSD/USDT LP
• wstETH LlamaLend + StakeDAO (wsteth-llamalend) — same strategy on wstETH collateral

These vaults are marked Testing in the UI while TVL ramps. Implied carry is shown as LTV × (StakeDAO yield APR − LlamaLend borrow APY) on the stats page.

Legacy Vaults (withdraw-only)

• WBTC Aave-RAAC crvUSD/pmUSD (wbtc-pmusd)
• wstETH Aave-RAAC crvUSD/pmUSD (wsteth-pmusd)
• XAUT Aave-RAAC crvUSD/pmUSD (xaut-pmusd)

Legacy vaults no longer accept new deposits (maxDeposit() returns 0). Existing share holders can withdraw.

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