What is Vessel
Vessel is a delta-neutral yield protocol on Monad. It holds a spot asset and shorts the equivalent notional on a perpetual order book. The two legs cancel: net delta stays within 1% of gross notional, rebalanced on band breach or a 4-hour timer. What remains is the funding rate, the market price of leverage, which accrues to the book.
Today the short leg is hedged against SimVenue SIMVENUE — SIMULATED, a simulated venue with an owner-settable funding rate behind the IVenue interface. Perpl integration is next.
Two decks
Hull is the senior tranche: fixed-maturity series (4-week at launch), transferable tokens, principal plus a fixed yield at maturity. The rate is a contract parameter, r_H = clamp(EWMA_30d(net funding APR) × (1 − h), 0, r_cap) with h = 40% and r_cap = 15% APR, not an expected or historical return.
Ballast is the junior tranche: perpetual, first-loss, earns the levered residual. Withdrawals carry a 48-hour cooldown and respect the subordination floor B / (H + B) ≥ 20%.
The waterfall
On profit: a 10% protocol fee comes off first (half to Reserve until its 2%-of-TVL target), Hull accrues at its rate (a contract parameter, not a market rate), and the residual goes to Ballast. On loss: Ballast NAV absorbs first, then Reserve, and only then is Hull principal impaired, which is a credit event.
Details: the engine and the waterfall.
What Vessel is not
- Not a yield promise. Hull's rate is a contract parameter. Funding can invert; Ballast can lose.
- Not audited. Vessel is experimental software in testnet.
- Not on mainnet. The deployed contracts are on Monad testnet, and the public repository holds no contracts yet, so contract-level claims elsewhere in these docs render as unverified.