# AutoFi Anchor Vault (afAnchor)

Capital Preservation First

---
config:
  theme: neutral
---
flowchart TB
    subgraph AnchorVault[afAnchor Plasma Vault]
        Vault[ERC-4626 Vault<br/>Base Asset: USDC]
    end

    subgraph Fuses[Fuses]
        ERC[SupplyFuseERC4626]
        Bal[BalanceFuseERC4626]
    end

    subgraph TBillTokens[T-Bill Tokens]
        BUIDL[BlackRock BUIDL]
        USDY[Ondo USDY]
        USDM[Mountain USDM]
    end

    Alpha[Alpha Bot<br/>AnchorStrategy]
    
    Vault --> Fuses --> TBillTokens
    Alpha -->|execute| Vault

    Note1[Target: ~4% APY<br/>Lowest risk tier<br/>Capital preservation]

# What It Is

afAnchor is the safest vault in the autoFi suite, investing in tokenized US Treasury Bills and government money market funds. This vault prioritizes capital preservation while earning the risk-free rate available in US government debt.

# How It Works

Deposits are allocated to tokenized T-Bill products from regulated issuers like BlackRock (BUIDL), Ondo (USDY), and Mountain Protocol (USDM). These tokens represent ownership of underlying Treasury Bills, providing the same yield you’d earn from direct Treasury purchases but with onchain access and instant liquidity.

# Target Returns

~4-5% APY (varies with Fed rates) from US Treasury interest

# Who It’s For

Risk-averse investors prioritizing capital preservation
Those seeking a safe harbor during market uncertainty
Users wanting yield without meaningful principal risk
Investors using this as a baseline return benchmark

# Benefits

Near-Zero Default Risk: US Treasury Bills are backed by the full faith and credit of the US government.

Stable Principal: T-Bills have virtually no price volatility. Your principal remains stable.

Better Than Cash: Holding USDC earns nothing. afAnchor earns Treasury yields while remaining accessible.

Baseline Benchmark: Every investment decision should be compared to what you can earn risk-free. afAnchor provides that baseline.

# Risk Profile

Very Low Risk: The safest vault in the suite. Primary risks are smart contract risk and stablecoin depegging risk on entry/exit. No market risk or credit risk beyond US government.

# afAnchor Strategy Flow

---
config:
  theme: neutral
---
sequenceDiagram
    participant Alpha as Alpha Bot
    participant Vault as Plasma Vault
    participant TBills as T-Bill Tokens

    Note over Alpha: Simple strategy - maximize yield among safe assets

    Alpha->>TBills: query current yields
    Alpha->>Alpha: rank by yield within risk tier
    
    alt New deposits or yield change > 10bps
        Alpha->>Vault: reallocate to highest yielding T-Bill
    else Steady state
        Alpha->>Alpha: no action needed
    end

    Note over Vault: Minimal rebalancing<br/>Focus on capital preservation