Hard cap per market
No destination may hold more than 60% of the pool, so one failing market cannot take everything.
Limits in code. Risks in plain sight.
What the vault enforces, what we tested, what can still go wrong, and what isn’t done yet. setsUSDC is in development, unaudited, and accepts no deposits.
Six rules the vault is built to enforce.
Cash kept back
At least 10% stays as USDC for withdrawals. What the caps can't place stays as cash too, never forced into a market.
Size gate
Markets with less than $250K supplied are skipped. A small market can't absorb deposits or pay them back.
Base rates only
Targets use the rate borrowers pay, read from chain. Reward incentives are ignored because they can stop at any time.
Permissionless, bounded rebalancing
Anyone can rebalance, but only toward published targets, between approved markets, in bounded steps.
Self-custody
Passkey accounts through Mera. Setsuna never holds keys, and withdrawals need no operator.
Deposit, wait a week, take it all back.
Each market got 1,000 USDC on a fork of Monad mainnet, seven days of simulated time, then a full withdrawal. Every transaction was checked for success. Simulated time, no outside trades: this proves the path works, not what it will earn.
| Market | Fork block | Result | Annualised |
|---|---|---|---|
| Aave V3 · USDC reserveRun by Codex | 109,894,238 | Round trip passed | 4.08% |
| Morpho Blue · WBTC/USDCRun by Codex | 109,894,238 | Round trip passed | 1.22% |
| Euler · eUSDC-12Run by Claude | 109,905,890 | 1,000 → 1,001.204 USDC | 6.28% |
| Neverland · USDC reserveRun by Claude | 109,905,890 | 1,000 → 1,000.346 USDC | 1.80% |
| Morpho Blue · aHYPER/USDCRun by Claude | 109,905,890 | 1,000 → 1,001.486 USDC | 7.75% |
Euler deposits reverted under estimated gas and succeeded with an explicit 1.5M limit; Setsuna’s adapters and keepers must set gas explicitly. Morpho WBTC/USDC passed but is currently below the $250K gate.
What can still go wrong.
- 01
Lending market risk
Each destination can suffer bad debt, an oracle failure or a contract bug. Caps limit the damage; they don't remove it.
- 02
Collateral dependency
Morpho aHYPER/USDC lends against shares of the Hyperithm Delta Neutral Vault. That market depends on that one strategy.
- 03
Withdrawals can wait
At high utilisation a market's cash runs thin; Euler had about $433K withdrawable against $5.8M supplied when tested. A withdrawal larger than available cash is refused, not short-paid.
- 04
Rates move
Every rate shown is today's. A large deposit lowers it. Nothing here is a promise or a forecast.
Not done yet, said plainly.
- Live rate reads from all five markets
- Fork round trips for all five markets
- setsUSDC contract prototype, fork-tested
- Public deployment
- Independent audit
- Deposits