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June 1, 2022

Rebus Vault Overview

Our previous posts explain the types of products we support and how our two categories of income streams operate. If you read through those, you may have gathered that the Rebus Vault is a central and critical platform component. But what exactly is the Rebus Vault, and how is it such a vital component of the platform? In short, it is not a single vault but a mechanism that creates and uses unique vaults for each investment. First, this eliminates the complexity of self-custodial key management for the investor. Second, it satisfies critical security and regulatory standards required by our TradFi partners (e.g., asset managers). Win, win, win.

What Is The Vault?

Rebus Vaults are the glue of the platform, facilitating traditional investor access to DeFi products through trusted financial houses or asset managers. Consistent with our vision, the idea is to operate similarly to existing TradFi products. Functionally, the Vault:

  • Implements each financial product using one or multiple DeFi protocols
  • Securely stores DeFi assets
  • Increases transaction security for subscribers
  • Optimizes investment efficiency
  • Allows collective or individual management of vault share purchases and sales
  • Facilitates liquidity management

How does it work?

When users invest in a specific product, the investor will receive a share of a particular Vault, granting rewards based on the proportion owned. All of this follows the specific Vault implementation and the underlying DeFi protocols for each product, respectively.

To further minimize friction for new investors, FIAT currency can be used for Vault investment. By mimicking traditional share practices, we further reduce the complexity of DeFi investments, increasing accessibility to a more significant number of people.

Demonstration of a generic Rebus Vault structure
Demonstration of a generic Rebus Vault structure

The diagram above shows the generic Rebus vault structure, visually demonstrating how it facilitates DeFi investments. This overcomes the complexity barrier that is self-custodial ownership (managing your own keys) preventing many TradFi Investors from diversifying into DeFi." Self-custodial ownership is a new, burdensome phenomenon preferred by a few, but not an avenue a majority of TradFi investors and organizations are ready nor able to pursue. 

Core Features

The Vaults Core features add a layer of security and safety to the platform that our partners and their clients can trust and understand.

  • Shared Vaults: Vaults can be operated by an individual or collectively owned. Investors in shared vaults receive shares of the vault into which they invested.
  • Layering Tool: Vaults provide an extra layer of security between DeFi investment products and the users, which aids in optimizing the management and investment of investment funds.
  • Strategy Sharing: By utilizing shared Vaults, specific strategies for DeFi investment products can easily become collectively owned, helping to validate each strategy.
  • Simplicity: Our Vaults are easy to understand for any active investor. Rewards and entry requirements are clearly stated. No surprises. No headaches.
  • Autonomously Managed: Through systematic rules that follow the product implementation, vault funds are either passively or actively managed.

The Vault - Satisfying Security and Financial Regulations

As we’ve written about, technical capabilities to expand the access and utility of DeFi investments are progressing daily. However, the main blocker of DeFi presence in mainstream finance is regulation. TradFi organizations must adhere to strict regulations before products are marketed and sold to clients. Creating a secure yet feasible intermediary (The Rebus Vault) between DeFi products and providing partners is a highly challenging and necessary component of the platform–it simply would not work without it. 

Such a mission is further challenged by a lack of regulations within DeFi. Fortunately, the Rebus team is experienced in building systems for a number of regulated industries, including finance. It is with this experience and expertise that our team is building a secure vault to bolster TradFi's confidence without limiting core elements of the DeFi products. Remember, asset managers must ensure the security of clients’ funds. The Vault, combined with the Rebus Investment Platform itself, are core to achieving these goals and establishing such trust.

For more information about the Rebus Vault, check out our whitepaper.

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