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Hiding Vault • Lend & Borrow
Hiding Vaults are ERC-721 Tokens which offer DeFi users the best borrowing and lending experience today.
The Hiding Vault is a lending product from KeeperDAO that enhances the DeFi lending and borrowing experience with composability and protection from external liquidation. Hiding Vaults are ERC-721 compliant NFTs which wrap a user's lending protocol position and provide numerous benefits unique to the KeeperDAO ecosystem. Currently, Hiding Vaults only support Compound Finance positions, however integrations with other lending protocols are in active development.

User's Benefits

By borrowing with a Hiding Vault, a user gains several advantages:
    Liquidation protection enabled by JITU
    Earn ROOK rewards by having an active borrowing position
    The ability to isolate lending positions from one another
    The ability to easily transfer posistions between wallets by simply sending the Hiding Vault NFT
    The ability to manage positions on multiple lending protocols within the same Vault *
    In the event of a liquidation, receive a share of the Keeper's liquidation profits *

How it Works

The Hiding Vault NFT

The core component of KeeperDAO's Hiding Vault protocol is the Hiding Vault NFT. Hiding Vault NFTs are ERC-721 compliant tokens which wrap a user's position in any supported DeFi lending protocol, and provide the aforementioned benefits. Upon minting a Vault, users are able to either migrate existing positions from supported lending protocols, or open new positions using the Vault interface in KeeperDAO's webapp. Users are able to mint as many Hiding Vaults as they please, and borrowing positions within each Vault are fully isolated from one another. This provides uniquely safe and composable DeFi borrowing experience, with the ability to manage multiple different positions from the same wallet without the risk of cross-liquidation. Once a Hiding Vault NFT has been minted, it will automatically support any future lending protocols integrated by KeeperDAO.
Users can mint an arbitrary number of Vaults to isolate positions across any supported protocol
An individual Vault interface with no open positions

Migrating an Existing Position

After minting a Hiding Vault NFT, users can migrate existing lending positions on any supported protocol to their vault. During the migration process, the user will be asked to make the necessary approvals for the migration to take place. For example, in order to migrate a Compound position, the user must first approve each cToken in their wallet.

Lending and Borrowing with Hiding Vaults

Users are able to lend and borrow assets within a Vault using KeeperDAO's web interface in the exact same way as with the underlying lending protocol. Any borrowed token will be automatically transferred to the user's wallet, and any suppled token will be automatically transferred to the Vault's position. Users are presented with the current status of the Vault's health, as well as a breakdown of the current interest and APY rates of their position
An example of the Vault interface with an open supply/borrow position on Compound
All functionality of the underlying protocol's UI is replicated in KeeperDAO's interface

Liquidation Protection with the Just-In-Time Underwriter (JITU)

In addition to the composability and isolation features provided by Hiding Vaults, users also receive the unique benefit of protection from liquidation by way of KeeperDAO's Just-in-Time Underwriter (JITU). JITU constantly monitors the health of Vault positions. If a given Vault's health falls below a certain threshold, JITU will automatically inject extra collateral (from KeeperDAO's liquidity pools) into the Vault to buffer the position against liquidation. The user can then add additional collateral to restore the Vault's health, at which point JITU will reclaim the added funds. In the event a Vault's health continues to decrease to the point of being liquiditable while underwritten by JITU, only whitelisted Keepers within the KeeperDAO ecosystem will have access to the liquidation. This protects the liquidation from MEV caused by gas wars, similarly to how the Hiding Game protects limit orders. In a future update, a share of the Keeper's liquidation profits will be returned to the Vault owner upon liquidation, making liquidations with Hiding Vaults a less painful experience. More details on how JITU works can be found here.

Earning and Claiming Rewards

Active positions within Hiding Vaults earn interest and rewards in the exact same way they would when using the underlying protocol's native interface. For example, a Compound position in a hiding vault will earn COMP rewards with the same rate they would using Compound natively. Additionally, any active borrow position within a Hiding Vault will earn ROOK rewards proportional to the amount borrowed in USD. ROOK tokens are distributed to Hiding Vault borrowers on a pro rata basis.
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// The user receives ROOK porportional
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// to the amount of assets they borrow in USD
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user_ROOK_Reward = (user_debt_volume_USD / total_debt_volume_USD)
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* ROOK_emitted_per_block
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For example, let's assume based on the current emission rate that 1000 ROOK tokens are to be distributed among all Hiding Vault borrowers over the course of one day. If a user is borrowing $1mm worth of assets and the total debt volume across all vaults is $10mm, they will receive 100 ROOK.
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user_ROOK_Reward = (1,000,000 / 10,000,000) // 10%
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* 1000
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= 100 ROOK
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All rewards can be viewed and claimed by clicking the "settings" button in the Vault interface. It is important to note that the claim process works differently for Vaults than the underlying protocol's native interface. Claiming rewards from a hiding vault is a two-step process that requires two separate transactions to be approved. The first step is the claim transaction, which claims tokens into the user's Hiding Vault NFT contract. The second step is a transfer transaction to move the tokens from the Vault contract into the user's wallet. If for some reason only the claim transaction is approved (for example, if the transaction takes a long time due to gas fees and the user closes the interface before approving the transfer), the user can still transfer the claimed tokens at any time. In these cases, the settings interface will provide the user with a "transfer" button in place of the usual "claim".
An example of the claim interface

Additional Features

The settings interface provides a couple more useful features, including the ability to transfer the Hiding Vault NFT to a different address, and a link to view the Vault contract on etherscan. When transferring a Vault, all unclaimed rewards will be transferred with it.

A Wrapper for Compound Finance

The first lending protocol integration offered by Hiding Vaults is with Compound Finance. This is achieved with the kCompound smart contract plugins to both the Hiding Vault NFT and JITU base contracts. All functionality of Compound's native interface is replicated within KeeperDAO's Vault interface, and all interest rates and COMP rewards distribution rates are carried over from the Compound protocol. All contracts are verified on etherscan, and a list of contract addresses can be found here.

Future Plans

There are many exciting upgrades planned for Hiding Vaults over the next several months, including an Aave integration, an Auto-Leveraging feature and more. For more details and current development updates, check out the KeeperDAO blog and roadmap.
Last modified 1mo ago