How Ceres Works
Ceres Smart Vaults automate complex yield strategies so you don’t have to. Once you deposit, the vault takes over and manages everything across partner protocols. No extra steps, no manual claiming, no constant monitoring.
Strategy Flow
Deposit You start by depositing a supported asset such as USDC, smsUSD, or frxUSD into a Smart Vault.
Wrapping or Staking If the asset can be staked or wrapped into a yield-bearing version, the vault does that for you. For example, smsUSD is staked through MainStreet to earn a base layer of yield.
Fixed Yield via Pendle The yield-bearing asset is deposited into Pendle to mint Principal Tokens (PT). PTs are bought at a discount and redeemed at full value on maturity, which locks in a fixed yield.
Leverage with Silo The vault can use PTs as collateral in Silo Finance to borrow more stablecoins. The borrowed assets are recycled back into the same strategy, creating safe and controlled leverage.
Looping and Compounding This process is repeated one or more times, depending on the vault. Yield generated from PTs and staking flows back into the vault and compounds automatically.
Reward Accrual As the vault runs, you also earn partner rewards such as Sonic Points, MainStreet incentives, and Silo rewards. These stack on top of your base yield and may qualify for future airdrops.
Fully Automated
After your deposit, everything runs in the background. Rebalancing, compounding, and safety checks are built into the vault logic. You can withdraw at any time and receive your original asset back, along with a yield on top.
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