Vault Capacities

SherpaEarn aims to provide responsibly scaled yield strategies with optimized risk/return relationships.

Global (Collective) Capacity

Determined by calculating the max effective capacity of the yield strategies being run. High quality, small scale strategies that benefit a select group are preferred over lower quality, large scale strategies that end up diluting depositors, introducing increased risk, and/or decreasing returns. Appropriately sized capacities must be enforced to keep this dynamic in check.

Per Chain Capacities

These are progressively adjusted up or down as a result of both the current yield prospects available and the current demand for depositing on a given network. Individual chain capacities add up to and cannot collectively exceed the global vault capacity.

For example if the global capacity is 10,000,000 USDC, then the per chain capacity composition will look something like:

• 5,000,000 USDC on Ethereum cap

• 2,000,000 USDC on Base cap

• 3,000,000 USDC on Monad cap

Example scenario where no capacity availabe on the selected network. Users must wait for withdrawals to process or cap to be raised. Alternately use a different network with space capacity.

Example scenario where spare capacity available on the selected network. Users can deposit any amount up to the cap.

Pricing & Yield Parity

There are no special yield benefits for depositing on one network over another. The multichain synchronization ensures that same pricing is guaranteed throughout. In general, Ethereum will tend to be allocated a higher capacity than other secondary networks due to higher liquidity and DeFi user activity.