Architecture

System Overview

Design Principles

Shared Vault Architecture

Kana uses a shared ERC-4626 vault where all user funds are pooled together and managed by a single strategy. This differs from per-user strategies (like Mamo) where each user has their own isolated strategy contract.

Benefits of shared vault:

• ⚡ Lower gas costs — one harvest transaction benefits all users instead of one per user
• 🔗 Better composability — kUSDC tokens are fungible and can be used in other DeFi protocols
• 🛠️ Simpler architecture — fewer contracts to deploy and maintain
• 💰 Efficient rebalancing — rebalance once for the entire pool

Trade-offs:

• All users share the same strategy and allocation
• Withdrawals must be processed proportionally from all protocols

Why this model works: For yield aggregation on stablecoins, where users have similar risk/return preferences, a shared vault is more efficient than isolated per-user strategies.

One Strategy Per Asset

Each vault has exactly one active strategy at a time. The strategy manages a single asset (USDC) across multiple protocols. This keeps the vault simple and the strategy focused.

Swappable Strategies

The vault owner can migrate to a new strategy:

Vault → Strategy A (active)
Vault → Strategy B (new) ← migrate here

Migration withdraws all funds from Strategy A and deposits into Strategy B. This allows upgrading strategy logic without redeploying the vault or requiring users to withdraw.

Proportional Withdrawal

When a user withdraws, funds are pulled from all protocols proportionally to the current allocation. This prevents:

• Draining liquidity from a single protocol
• Creating imbalanced positions
• Forced rebalancing after large withdrawals

Allocation Splits

The strategy uses basis points (1 bp = 0.01%) to define allocation across protocols:

Yei:    4000 bp (40%)
Takara: 3500 bp (35%)
Morpho: 2500 bp (25%)
Total: 10000 bp (100%)

These splits are fully configurable by the strategy owner and are what the keeper bot optimizes. You can even allocate 100% to a single protocol if desired:

Yei:    10000 bp (100%)
Takara: 0 bp (0%)
Morpho: 0 bp (0%)

The keeper monitors APYs across all protocols and triggers rebalancing when yield opportunities justify the gas costs.

Component Interaction

Component	Role	Owner
KanaVault	User-facing deposit/withdraw, share accounting	Protocol admin
Strategy	Fund allocation across protocols	Protocol admin
Keeper Bot	Off-chain automation (harvest, rebalance)	Operator
Frontend	User interface	—

Contract Relationships