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Three-pillar design

A Thaler vault runs three pillars in parallel. Each pillar earns from a different rate, and the same market conditions that compress one rate often widen another. The total return is therefore steadier than any one pillar alone.

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How the pillars combine

In steady state the three rates accrue independently. When funding is positive, the perpetual leg dominates the return. When borrow rates compress, the lending leg dominates. When SOL inflation is high, the staking leg dominates. The vault does not depend on any one pillar to meet the yield floor. The realised net rate equals:
Each term varies independently. Aggregating them produces a tighter distribution than any single term in isolation.

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Strategy families

Thaler ships strategies in families. The first family is Thaler One, with six tiers from Safe to YOLO. Every tier uses the same three pillars; the difference is the weight assigned to each.
The largest share of capital sits in liquid staking. The lending leg runs at the lowest leverage in the family. The hedge is sized only to keep the position market neutral, not to extract funding income.
A small shift toward the lending leg. The hedge stays at the same low leverage as Safe. Returns track the deposit-borrow spread on Kamino more closely than they do on Safe.
Roughly even weight between the lending leg and the hedge. The hedge runs at moderate leverage so funding income contributes alongside the lending carry.
A larger hedge at the same moderate leverage as Balanced. Returns are biased toward funding income.
The hedge runs at higher leverage. Funding becomes the dominant source of yield. Rebalances happen more frequently to keep the position market neutral as size grows.
The hedge runs at the highest leverage the protocol allows. Returns are the most variable in the family and the most sensitive to funding-rate regimes.

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Published parameters

Each tier ships with a published APY band and a guaranteed yield floor. Both numbers are net of the 11 % service fee. The yield floor is the minimum return the protocol commits to pay on a full-year hold. It is honoured by the protocol reserve, not by a venue. See Yield floor.

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Why three pillars rather than one

A single-pillar strategy carries the variance of one rate. When that rate moves against the position, the entire payout is exposed. The three pillars in Thaler’s design are driven by different underlying conditions: These sensitivities are largely uncorrelated. Periods where one rate compresses are usually periods where another rate widens, because the same market conditions push them in opposite directions. The aggregate is more stable than any individual rate.

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What is identical across tiers

Every tier shares the same:
  • Custody model: self-custodial Squads smart account.
  • Claim cadence: 24-hour cooldown between claims.
  • Closure rules and penalty schedule.
  • Principal protection commitment (Principal protection).
  • Yield floor guarantee (Yield floor).
Only the strategy parameters and the resulting return profile differ.

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Confidential parameters

Exact leverage values, rebalance thresholds, and venue weights are part of the strategy signature and are not published. Reviewers with a legitimate need may request the audited specification under NDA at audit@thaler.finance.

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Next read

Liquid staking

The base of every vault and the source of the floor yield.

Lending markets

The carry loop on Kamino, with Jupiter Lend and MarginFi coming next.

Perpetual markets

The hedge leg and the funding income it generates.

Yield floor

How the floor is set and what backs the commitment.