Stack with GP Vaults

Overview

The Principal Token (PT) represents a tokenized fixed-income position on a yield-bearing asset. By combining PTs and Napier LPs within general-purpose (GP) vaults, curators can enhance APY, trading volume, and liquidity—and ultimately improve curator profitability—while keeping the end-user experience simple and seamless.

Vaults, Earn Products, and Investment Packages

A Vault (also referred to as an Earn Product or Investment Package) represents a general-purpose vault framework designed to encapsulate all underlying complexities — such as advanced DeFi strategies, payment integrations, and regulatory or compliance requirements for real-world use — within the vault itself, delivering a simple and seamless experience to end users.

• From the vault deployer’s perspective, it functions as an on-chain Fund of Funds (FoF).

• From the end user’s perspective, it serves as a passive and intuitive investment package.

Representative Implementations include:

• Morpho v2 Basic Vault

• Euler Earn

• Veda Boring Vault

• Mellow Core Vault

• IPOR Fusion

• Gauntlet Aera

• Upshift

GP (General-Purpose) Vaults and Napier

Combine Napier PTs and LPs inside GP vaults to stack APY, volume, and liquidity while keeping the end-user flow simple.

Example Vault Packages includes

• Automated PT Looping Vault: Build looping positions on a given PT with lending to target higher fixed yields passively, without rollover at maturity.

• Leveraged Auto-Compounded LP Vault: Auto-compound YT yield back into the LP and use LP tokens as collateral in lending to target passive high returns and points exposure.

• Dollar-Based PT Best Rate Basket Vault: Continuously rebalance into the highest-return PTs to target passive, high yields without rollover at maturity.

And, extend to Payments:

• Vault-Backed Credit/Debit Card: A payments vault that enables instant settlement: the vault maintains a secured loan position, borrowing settlement currency against crypto collateral to fund card transactions.

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Integration Flow

1. Create a Napier Market: Deploy a PT and YT market on Napier

2. Manage Napier Market:

   1. Deploy Napier Oracles: Deploy the PT price oracle on Napier

   2. Set Rehypothecation: Deploy idle LP funds from Napier AMM into vaults

3. Deploy Lending Markets: Enable PTs to be used as collateral within lending protocols

4. Deploy GP Vaults: Bring all complexities together into one.

Napier recognizes the challenge of having to navigate different interfaces and interact with various backends across curator-based platforms. We’re developing a product that delivers a unified user experience across all curator-based platforms within the Napier ecosystem. Follow us on Twitter (X) to stay tuned for updates.

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Deploy GP Vaults

To integrate PTs with GP Vaults:

• Stack with GP Vaults - IPOR Fusion

To enable the use of Napier PTs and LP tokens within GP Vaults, dedicated integrations with each GP Vault provider are required. Napier plans to support all the representative implementations listed above progressively over time.