What is Struct Finance and How it Works?

Struct Finance is a DeFi platform offering tailored structured financial products to cater to the distinct risk-return profiles of retail and institutional investors. Our innovative Tranching mechanism, the first in our planned lineup of product offerings, enables diversified investment opportunities across a wide array of markets through interest rate vaults. (Struct Finance)

The First and Main Product of this Protocol is the Interest Rate Vaults, in these users can deposit their assets in two portions or tranches that have different returns:

The lower-risk (fixed) tranches: these are more secure and will receive a prioritized return as fixed cash flow;

The higher-risk (variable) tranches: these offer amplified returns through leveraged exposure, but payments are made after the fixed tranche.
(Struct Finance Medium Article)

These Vaults Operate in different periods, the first is the Subscription Period which lasts a few days and users can deposit their assets in both Tranches.
After the Subscription Period ends, the vault is closed and the Term (Maturity Period) Starts, as the vault closes the deposited assets are locked and Oversubscribed deposits can be redeemed.

Oversubscribed Tranches

Deposits in a vault could be refunded if one tranche gets oversubscribed in comparison to the other after the subscription period. Any excess deposit will need to be redeemed by depositors of the oversubscribed tranche.

Since vaults require that tranches are divided in a 50/50 ratio, once the subscription period is over, the deposits on the fixed side have to be equal to the deposits on the variable side.

Both tranches require the same amount of liquidity, and any surplus in one tranche will be refunded to the last depositor in that tranche, ensuring an equal balance is maintained after the subscription period ends.

With a 50/50 ratio in their first vaults, the variable tranche can achieve a maximum of 2x leverage, however, in the future vaults with different ratios will appear enabling more leverage for the Variable tranche.

In the last period of a vault, the vaults reached their "Mature" status, and the yield from the vault can be claimed, this yield will prioritize the fixed tranche first and after all the depositors receive their fixed income, the rest of the yield will be distributed for the Variable Tranche.

In July 23, 2023 Two New Vaults Appeared

With a Subscription Period of 3 Days, these two Vaults appeared:

A BTC.b - USDC Vault with BTC.b in the Fixed Tranche and USDC for the Variable Tranche
A USDC - USDC Vault with USDC in the Fixed Tranche and USDC for the Variable Tranche

And these are the ones present in this dashboard.

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Struct Finance Latest Two Vaults Activity