How Vale Works
Vale simplifies DeFi yield by acting as an intelligent layer between you and lending protocols. Here’s how the system operates.The Basics
When you deposit USDC through Vale, your funds are allocated to curated lending vaults on Base. These vaults lend your assets to borrowers and generate yield from interest payments.Step-by-Step Process
1. You Deposit USDC
When you initiate a deposit through Vale:- Your USDC is transferred to Vale’s router contract
- A small fee (0.1%) is collected
- The remaining USDC is deposited into a Morpho vault
- You receive vault shares representing your deposit
2. Your Funds Earn Yield
Once deposited:- The lending vault puts your USDC to work by lending to borrowers
- Interest payments from borrowers generate yield
- Your vault shares automatically appreciate in value as yield accrues
3. You Withdraw Anytime
When you want to exit:- You submit a withdrawal through Vale
- Your vault shares are redeemed for USDC plus earned yield
- A small fee (0.1%) is collected
- You receive your USDC directly to your wallet
Vault Allocation
Vale currently integrates with Morpho vaults on Base. Morpho is a lending protocol that optimizes capital efficiency through peer-to-peer matching and curated vault strategies. Key aspects of vault allocation:- Curated Selection: Vale only routes to vaults managed by vetted institutional curators
- Risk Management: Vault strategies are designed with conservative risk parameters
- Transparency: All vault positions are visible on-chain
Fees
Vale charges a straightforward 0.1% fee on both deposits and withdrawals:| Action | Fee |
|---|---|
| Deposit | 0.1% of deposit amount |
| Withdraw | 0.1% of withdrawal amount |
Technical Architecture
For those interested in the technical details:Smart Contracts
Vale uses a simple, immutable router contract:- Stateless Design: The router never holds user funds between transactions
- No Admin Keys: No privileged functions that can move or freeze funds
- Immutable: Contract cannot be upgraded or modified after deployment
- Minimal Attack Surface: Simple code with limited functionality reduces risk
Transaction Flow
- User approves Vale router to spend USDC
- User calls
depositWithFee()on Vale router - Router collects fee and deposits remainder to vault
- User receives vault shares directly (shares go to user’s wallet)
Withdrawals
- User approves Vale router to spend vault shares
- User calls
withdrawWithFee()on Vale router - Router redeems shares from vault
- Router collects fee and sends remainder to user
Handling Large Deposits
For larger deposits, Vale automatically filters and surfaces vaults with sufficient capacity and liquidity depth to accommodate your size. Rather than manually evaluating which vaults can handle significant capital, Vale identifies options that meet institutional-grade liquidity thresholds—ensuring your funds are deployed efficiently without capacity constraints or slippage concerns. This means whether you’re depositing thousands or millions, Vale actively optimizes vault selection based on your deposit size, matching you with vaults that have the depth to put your capital to work immediately.What Makes Vale Different
| Traditional DeFi | Vale |
|---|---|
| Research multiple protocols | Single interface |
| Compare yields manually | Curated vault selection |
| Manage multiple positions | Unified dashboard |
| Complex transactions | One-click deposit/withdraw |
| Technical knowledge required | Simplified experience |