Stablecoin Vaults

Longship's Stablecoin Vaults serve as a layer on top of Repo trades. They are provided as a convenience for stablecoin farmers who prefer a passive approach rather than actively monitoring Repo offerings. Stablecoin Vaults are critical to delivering exposure to users the way they want to receive it.

Stablecoin Vaults hold USDC or USDT and snap up delta-neutral Repo trades whenever they are available to earn delta-neutral yield. Each time a vault takes a Repo trade, it first uses a spot DEX like Uniswap to convert its stablecoins into the market's underlying token and then funds the delta-neutral Repo. When the Repo returns the spot asset, the vault converts it back to the original stablecoin.