Vault Infrastructure
How structured DeFi vaults work — from fiduciary allocation to smart contract execution.
The Four-Layer Ecosystem
On-chain vault infrastructure has four distinct layers. Understanding where each participant sits prevents misaligned expectations and architecture decisions.
Selects curators, allocates client capital per IPS, provides fiduciary oversight, compliance monitoring. Protocol Wealth is an SEC-registered RIA at this layer.
Smart contract infrastructure. ERC-4626 (synchronous) and ERC-7540 (asynchronous) vault standards.
Strategy managers who configure vault parameters, select collateral, and manage risk. Non-custodial — they set rules but don't hold assets.
Legal wrappers and distribution infrastructure. Tokenized securities, fund vehicles, regulatory compliance.
Four Vault Paths
Different client needs require different infrastructure. Each path optimizes for specific trade-offs between control, yield, and complexity.
Midas + RE7 Labs. BTC yield via professionally managed infrastructure. Lowest client complexity.
Lagoon ERC-7540. Pooled vehicle with async deposit/withdrawal. Compliant fund structure.
Safe + Zodiac. Individual separately managed accounts with policy-gated execution.
IPOR Fusion. Self-directed with programmatic rebalancing via Fuse architecture.
Key Principles
PW never holds private keys. All signing via Turnkey MPC with 2-of-3 co-sign architecture. Client retains beneficial ownership at all times.
Every allocation decision made under SEC fiduciary duty. Investment Policy Statements govern all vault deployments. No speculative positions without client authorization.
All vault positions tracked on-chain and visible in real-time via the PW Onchain Statement platform. No black-box strategies.
Protocol Wealth LLC is an SEC-registered investment adviser (CRD #335298). Registration does not imply a particular level of skill or training. Vault architecture descriptions are for educational purposes only and do not constitute investment advice or a solicitation to buy or sell any security.
DeFi protocol participation involves smart contract risk, liquidity risk, impermanent loss, and other risks not present in traditional investments. Digital assets including cryptocurrencies are highly speculative, volatile, and may lose all value. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results.