Royco

The home of onchain finance.

[Royco @roycoprotocol]

AA_FalconXUSDC is live on Royco Dawn.

You can now deposit into Senior and Junior tranches of @paretocredit 's FalconX Credit Vault.

Backed by @FalconXGlobal , one of the most credible institutional borrowers in digital assets.

[Royco @roycoprotocol]

Hard to believe it's been two months already.

When Aave's liquidity dried up, depositors couldn't exit and yield turned into negative carry. That's the looping trap.

Tranching opens the door to the same returns, without that exposure.

Worth two minutes 👇

[Portals.fi | DeFi Explorer @portals_fi]

"Dawn senior tranches are the immaculate collateral. A better version of the underlying asset from a risk point of view."

🆕 @roycoprotocol DeFi Drop 🎙️

@ShivaanshKapoor, Head of Engineering:
🌊 Why they pivoted from incentives to Dawn
📊 TradFi waterfall credit
And more...

[Royco @roycoprotocol]

If you're looking for risk-adjusted yield onchain, this is one to take seriously.

Senior savUSD open: https://t.co/QdQ1rJHAKB

[Royco @roycoprotocol]

The most overlooked market on Royco.

Senior savUSD from @avantprotocol. Hard to find a better risk-adjusted yield onchain right now.

Worth a closer look.

[Royco @roycoprotocol]

Here's where it gets interesting:

savUSD already has $17.38M in native coverage backing $90.66M in deposits (~19%).

On Royco, that comes with another 20% minimum Junior coverage on top.

Two layers of drawdown protection.

[Royco @roycoprotocol]

Full episode here: https://t.co/hgvCb6UvH3

Worth every minute.

[Portals.fi | DeFi Explorer @portals_fi]

"Dawn senior tranches are the immaculate collateral. A better version of the underlying asset from a risk point of view."

🆕 @roycoprotocol DeFi Drop 🎙️

@ShivaanshKapoor, Head of Engineering:
🌊 Why they pivoted from incentives to Dawn
📊 TradFi waterfall credit
And more...

[Royco @roycoprotocol]

What's playing out is not a coincidence.

Royco's Yield Distribution Model is what's repricing yields on @Neutrl in real time.

@ShivaanshKapoor, our Head of Engineering, walked through how it works on @portals_fi 's podcast.

Full episode below 👇

[Royco @roycoprotocol]

The Neutrl sNUSD market just hit 99% utilization.

Almost all Junior capital is actively backing Senior deposits, and the yield curve is adjusting to bring more in.

Worth understanding what's going on.

[Royco @roycoprotocol]

The Junior side of Neutrl is paying a much higher share of yield right now.

Nothing has changed on the strategy. Junior capital is in higher demand, and the yield curve is reflecting that.

Junior open: https://t.co/DZVyCkptxM

[Royco @roycoprotocol]

The Neutrl sNUSD market just hit 99% utilization.

Almost all Junior capital is actively backing Senior deposits, and the yield curve is adjusting to bring more in.

Worth understanding what's going on.

[Royco @roycoprotocol]

With the buffer right above that floor, the protocol responds. Senior is now paying a higher premium to Junior.

Two paths back to 90% target:

- Juniors enter (drawn by the boosted yield)
- Seniors exit (the premium gets too expensive)

The system self-balances.

[Royco @roycoprotocol]

Both tranches remain untouched. No losses on either side.

The reset gives the market more time to play out.

We'll keep posting updates as it does.

[Royco @roycoprotocol]

An interesting turn in the apyUSD market overnight.

The Observation Period briefly ended, and then reset.

Worth walking through what happened.

[Royco @roycoprotocol]

Where things stand now:

- Window: 30 days again, 29 days left
- Current drawdown: 2.32%
- Junior leverage: 2.95x
- All yield flowing to Junior

If a Junior holder were to exit now, the realized drawdown would be 2.32% × 2.9 = around 6.84%.

[Royco @roycoprotocol]

This week is showing what tranching is actually for.

@ShivaanshKapoor walked through the reasoning on @portals_fi days ago:

The nature of STRC-backed stablecoins, the volatility they carry, and why Royco's Observation Period is part of the core design.

Press play 👇

[Portals.fi | DeFi Explorer @portals_fi]

"Dawn senior tranches are the immaculate collateral. A better version of the underlying asset from a risk point of view."

🆕 @roycoprotocol DeFi Drop 🎙️

@ShivaanshKapoor, Head of Engineering:
🌊 Why they pivoted from incentives to Dawn
📊 TradFi waterfall credit
And more...

[Royco @roycoprotocol]

Agra is launching a secondary market for srRoyUSDC.

Native redemptions from the Senior vault take up to 30 days.

With Agra, sellers exit immediately at a discount, and buyers earn that discount in exchange for the wait.

Coming soon to the rest of Royco's products. Glad to have @agra_gg building with us.

[Agra @agra_gg]

Today we're launching a secondary market for srRoyUSDC, in partnership with @roycoprotocol.

srRoyUSDC is Royco's senior vault. Depositors earn yield sourced across multiple markets, with junior capital taking first loss. It functions like an index of protected yield.

Redemptions from the vault are not instant. They depend on the vault's state, so a holder who wants to exit today cannot redeem immediately at NAV. The difference between what the market will pay now and what the position redeems for later is the liquidity premium. Agra is built to price this in real time, so the cost of liquidity and the value of protection trade openly rather than a fixed assumption.

Sellers exit without waiting on the redemption queue. Buyers get protected yield exposure, plus the premium for taking on the wait. Liquidity providers earn the spread.

A later integration with Royco Dusk will form part of the liquidity sleeve, adding a further source of depth to the market. From there we plan to expand listings across Royco's single-name junior and senior vaults, so the full tranche can be priced and traded.

[Royco @roycoprotocol]

A solid breakdown of how tranching actually works.

The main protocols compared side by side: market design, Senior and Junior structure, yield distribution and loss handling.

Worth the read if tranching is still new to you. Great piece by @simonthekid_

[Simon @simonthekid_]

https://t.co/1g5ZlDrIKW

[Royco @roycoprotocol]

Public access is open. Deposit into either side:

Senior: https://t.co/FzxVjSBHwL
Junior: https://t.co/9WHEO6509n

[Royco @roycoprotocol]

The newest market on Royco is also the best-paying.

AA_FalconXUSDC went live under a week ago and it already has $2.5M TVL.

It splits @paretocredit's structured credit yield into two sides:

- Senior: 7.28% (3% drawdown protection)
- Junior: 18.88% (highest in the protocol)