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Vault Architecture

Every fund on Tilt Protocol is an ERC-4626 vault — the standard interface for tokenized vaults on Ethereum. This means Tilt vaults are composable with the broader DeFi ecosystem.

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Core Design

Each vault holds a basket of ERC-20 tokens (representing stocks, ETFs, or crypto) denominated in a single base asset: tiltUSDC (a USDC-equivalent stablecoin on Robinhood L2). 
Vault (ERC-4626)
├── Base Asset: tiltUSDC
├── Held Tokens: [tiltAAPL, tiltNVDA, tiltTSLA, ...]
├── Target Weights: [3000, 2500, 2000, ...] (basis points)
├── Shares: represent proportional ownership of all vault assets
└── Fees: entry, exit, management, performance

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Share Mechanics

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Deposits

When an investor deposits tiltUSDC:
  1. Entry fee is deducted (sent to FeeManager)
  2. Shares are minted proportional to current NAV: shares = (deposit * totalShares) / totalAssets
  3. Deposited funds are held as unallocatedDeposits until allocated into the portfolio

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Withdrawals

When an investor withdraws:
  1. Shares are burned
  2. The vault calculates the proportional claim on all held assets
  3. Held tokens are auto-liquidated via TokenRouter to return tiltUSDC
  4. Exit fee is deducted
  5. Net tiltUSDC is returned to the investor
Withdrawals are never paused — investors can always exit regardless of vault state. 
totalAssets = tiltUSDC balance
            + Σ (held_token_balance × token_price_in_USD)
            for each token in the portfolio
Token prices are sourced from the TokenRouter oracle. Share price is simply totalAssets / totalShares in 18-decimal precision.

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Dead Shares

The first 1,000 shares of every vault are minted to address(1) (burned permanently). This prevents the classic ERC-4626 inflation attack where a first depositor manipulates share pricing through donation.

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Allocation and Rebalancing

Vaults maintain two distinct operations: Allocation — deploys idle tiltUSDC into target positions:
  • Called via allocateIdleAssets() (permissionless — anyone can trigger it)
  • Buys target tokens proportional to their weight
  • Only uses unallocated base asset; doesn’t sell existing positions
Rebalancing — realigns the portfolio to match target weights:
  • Sells over-weight tokens, buys under-weight tokens
  • Restricted to authorized callers (curator or RebalanceEngine)
  • Configurable minimum interval between rebalances

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Vault Types

Tilt supports two vault types that share the same BaseVault core:
Curator VaultOracle Vault
Weight sourceCurator sets weights directlyOracle feeds weights automatically
CreationPermissionlessPermissioned (protocol owner)
RebalancingCurator-triggered with time-lockAutomatic when oracle updates
Use caseCustom strategies, AI-driven fundsFlagship strategies (e.g., politician trackers)
Both types are deployed as BeaconProxy instances, allowing the protocol to upgrade vault logic without redeploying individual vaults.