Demystifying Toros: Quick breakdown of our Products + Value Propositions

1. Why Toros? First-Mover Advantage & Ecosystem Integration

Toros was a pioneer in automated leveraged vaults, helping define the category in its early days. Since then, the protocol has expanded across Ethereum, Optimism, Arbitrum, Base, and Polygon, embedding itself within these ecosystems through strategic integrations, liquidity partnerships, and active participation in on-chain communities.

With years of operational history and iterative development, Toros has matured from a novel concept into the market-leading infrastructure layer for on-chain leverage and yield. This sustained presence and adaptability make it a dependable choice for users and protocols alike.

Value Proposition: Toros has built a reputation through consistent innovation and deep integration within the DeFi ecosystem. As one of the first protocols to launch automated leveraged vaults, it has continuously adapted and refined its approach, making it a reliable option for users and protocols looking for a solid foundation in on-chain leverage and yield strategies.

2. Leveraged Tokens Without Liquidations

Toros leveraged vaults offer automated exposure to assets like ETH and BTC at a fixed target leverage (e.g., 3x), without the risk of liquidation. These vaults behave like power perpetuals — derivatives that amplify exposure non-linearly (e.g., squared or cubed returns) — by continually re-leveraging as price trends. Gains (or losses) compound over time, especially in trending markets.

Instead of relying on manual management, each vault automatically rebalances when leverage drifts outside a predefined range (e.g., 2.7x–3.3x for a 3x vault). There's no need to top up collateral, de-lever, or manage positions — the vault handles it all.

Value Proposition: Toros delivers hands-off, constant-leverage exposure with automatic rebalancing and no liquidation risk. The payoff profile mirrors power perps, meaning returns grow faster than linear leverage in trending markets — but are also susceptible to volatility decay in choppy conditions. It's a capital-efficient way to gain directional exposure, optimized for simplicity and composability.

3. USDy: Stablecoin Yield with Low-Risk Exposure

USDy is a conservative, yield-generating vault designed to deliver steady returns on stablecoin holdings. It allocates capital across low-risk strategies such as lending protocols, stablecoin DEX pairs, and other stablecoin-backed opportunities. Strategies are actively optimized to capture the most favorable yields available. With auto-compounding enabled, all earned yield is reinvested automatically, maximizing long-term growth without requiring active user management.

Value Proposition: USDy provides a reliable, low-volatility way to grow stablecoin assets. By focusing on conservative strategies and auto-compounding returns, it offers stable, passive income for risk-averse users seeking predictable yield.

4. USDpy: Cost Basis Yield Vaults

USDpy generates yield through delta-neutral strategies by lending BTC or ETH on Aave and borrowing stablecoins like USDC. The borrowed USDC is then used to short BTC or ETH on Synthetix or GMX, effectively hedging market exposure. By leveraging Aave, the vault achieves greater capital efficiency and earns higher funding rate yield than traditional spot-and-short approaches.

Value Proposition: USDpy offers stablecoin holders passive income from funding premiums and lending rewards, all while staying neutral to market volatility—making it a more predictable and lower-risk alternative to traditional yield farming.

5. USDmny: Delta-Neutral Yield on Stablecoins

Toros’ USDmny vault delivers stable, uncorrelated yield on stablecoins like USDC by maintaining a delta-neutral position. The strategy begins by supplying USDC to a lending protocol like Aave, then borrowing a volatile asset (e.g., AERO or wETH) against that collateral. Both assets are deployed into a DEX liquidity pool (e.g., Aerodrome), creating a hedged position: long USDC, short the borrowed asset.

This structure offsets market exposure while allowing the vault to earn trading fees, emissions, and lending interest. Through automated rebalancing, USDmny captures yield from DEX activity without relying on asset appreciation or speculative trading.

Value Proposition: USDmny offers stablecoin holders a passive, market-neutral yield source. With delta hedging and risk management fully automated, it’s a capital-efficient, low-maintenance alternative to traditional farming — no price exposure, no active oversight, just steady returns.

6. Security and Safety: Built on Battle-Tested dHEDGE Contracts

Toros benefits from the robust security of the dHEDGE platform, leveraging its battle-tested architecture and smart contracts. Live on Ethereum Mainnet since October 2020, dHEDGE has undergone multiple rigorous audits, ensuring a high level of security for all assets and transactions.

dHEDGE incorporates several security features to protect capital, including Guarded Open Access Transactions (GOAT), which restrict protocol managers to only whitelisted contracts and assets. Attempts to use non-whitelisted assets or contracts will be blocked, minimizing exposure to unintended risks.

With comprehensive audits conducted by trusted firms like CertiK, iosiro, Sherlock, and others, all core contracts, integrations, and features are regularly tested for vulnerabilities.

Value Proposition: Toros provides a secure environment for users by building on dHEDGE’s extensively audited contracts and security features. With Guarded Open Access Transactions, ongoing audits, and a commitment to bug bounties, Toros minimizes risks and ensures users’ capital is protected, offering peace of mind that only verified actions can be executed.