# AutoFi USDC-Hybrid Vault (afUSDC-Hybrid)

Balanced DeFi and Equity Exposure

---
config:
  theme: neutral
---
flowchart TB
    subgraph PlasmaVault[afUSDC-Hybrid Plasma Vault]
        Vault[ERC-4626 Vault<br/>Base Asset: USDC]
        AM[Access Manager]
        FM[Fee Manager]
    end

    subgraph DeFiFuses[DeFi Fuses 60%]
        SF1[SupplyFuseMorpho]
        SF2[SupplyFuseAaveV3]
        BF1[BalanceFuseMorpho]
        BF2[BalanceFuseAaveV3]
    end

    subgraph RWAFuses[RWA Fuses 40%]
        ERC1[SupplyFuseERC4626]
        ERC2[BalanceFuseERC4626]
        Swap[SwapFuseUniversal]
    end

    subgraph DeFi[DeFi Protocols]
        Morpho[(Morpho)]
        Aave[(Aave V3)]
    end

    subgraph RWA[ST0x Tokens]
        tNVDA[Wrapped tNVDA]
        tTSLA[Wrapped tTSLA]
        tAMZN[Wrapped tAMZN]
    end

    Raindex[(Raindex<br/>Orderbook)]
    Alpha[Alpha Bot<br/>HybridRebalancer]
    Pyth[Pyth Oracle<br/>Stock Prices]

    Vault --> DeFiFuses --> DeFi
    Vault --> RWAFuses --> RWA
    Swap --> Raindex
    Alpha -->|execute| Vault
    Pyth -->|NBBO pricing| Alpha

# What It Is

afUSDC-Hybrid combines steady DeFi lending yields with exposure to tokenized equities. The vault maintains a 60/40 allocation between DeFi yields and tokenized stocks, giving you diversified exposure across both crypto-native and traditional markets.

# How It Works

The vault splits your USDC between two strategies. The DeFi Component (60%) deploys to top lending protocols for consistent yield generation. The Equity Component (40%) allocates to a diversified basket of tokenized stocks including major tech companies (NVIDIA, Tesla, Amazon) and crypto-adjacent firms, acquired through Raindex. During US market hours when liquidity is deepest, the vault maintains full equity exposure. On weekends and after hours, it reduces equity allocation to manage gap risk.

# Target Returns

6-12% base APY plus equity appreciation potential, from DeFi lending, stock price appreciation, and dividends

# Who It’s For

Investors wanting both yield and equity exposure
Those seeking diversification beyond pure crypto
Users who want traditional market access through DeFi rails
Anyone looking for a balanced, moderate-risk portfolio

# Benefits

True Diversification: DeFi yields perform independently of stock markets, providing genuine portfolio diversification.

Market-Aware Management: The strategy adjusts exposure based on market hours, reducing risk during periods of stale pricing.

Seamless Access: Gain exposure to major US equities without traditional brokerage accounts, KYC processes, or geographic restrictions.

Yield While You Wait: The DeFi component generates yield regardless of stock price movement.

# Risk Profile

Medium-High Risk: Combines lending protocol risk with equity market risk. Stock positions can lose value during market downturns. Weekend price gaps can cause unexpected moves. Suitable for investors comfortable with equity market volatility.

# afUSDC-Hybrid Strategy Flow

---
config:
  theme: neutral
---
sequenceDiagram
    participant Alpha as Alpha Bot
    participant Vault as Plasma Vault
    participant DeFi as DeFi Protocols
    participant Raindex
    participant Pyth as Pyth Oracle

    Alpha->>Alpha: check market state
    
    alt US Market Open
        Alpha->>Alpha: target 60% DeFi / 40% RWA
    else Weekend or After Hours
        Alpha->>Alpha: target 80% DeFi / 20% RWA
    end

    Alpha->>Vault: get current allocations
    Alpha->>Pyth: get stock prices + staleness
    
    alt Oracle fresh and rebalance needed
        Alpha->>Alpha: calculate trades
        
        alt Increase RWA
            Alpha->>Vault: withdraw from DeFi
            Alpha->>Vault: swap USDC to tNVDA via Raindex
            Vault->>Raindex: takeOrder
            Alpha->>Vault: deposit wrapped tokens
        else Decrease RWA
            Alpha->>Vault: withdraw wrapped tokens
            Alpha->>Vault: swap tNVDA to USDC via Raindex
            Vault->>Raindex: takeOrder
            Alpha->>Vault: supply to best DeFi yield
        end
    else Oracle stale
        Alpha->>Alpha: skip RWA trades, optimize DeFi only
    end