Capital Efficiency Flywheel

Whether you're parking ETH, USDC, or another supported asset, Zino’s smart contract infrastructure ensures your funds are always working at their highest potential—securely and transparently.

Asset Allocation & Strategy Diversification

Zino Smart Vaults are capital-efficient asset pools governed by smart contracts that strategically deploy user deposits into a curated set of partner DeFi protocols. These vaults are optimized to generate the highest possible yield while dynamically managing risk through diversification and rebalancing mechanisms.

Each Smart Vault functions as a singular aggregated asset pool (e.g., ETH, USDC) that is deployed across up to five distinct DeFi protocols. These protocols are selected from three core categories:

1. Yield Farming

   • Examples: Beefy Finance, Umami

2. Liquidity Provision

   • Examples: Uniswap V3, Camelot

3. Lending & Money Markets

   • Examples: Aave, Compound

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Example Allocation – ETH Vault

Partner Protocol	Strategy Type	Allocation	Description
Uniswap V3	Liquidity Provision	30%	Deployed into ETH/ARB pool for trading fees
Beefy Finance	Yield Farming	40%	Compound ETH yields via optimized vault
Aave	Lending & Money Market	30%	Lend ETH for passive interest + liquidity mining

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Visual Flow – Vault Allocation Architecture

flowchart TD
    A[User Deposits ETH] --> B[Zino Smart Vault]
    B --> C[Uniswap V3 - LP Pools]
    B --> D[Beefy Finance - ETH Vaults]
    B --> E[Aave - Lending Markets]
    C --> F[Trading Fees]
    D --> G[Auto-compounded Yield]
    E --> H[Lending Interest + Liquidity Incentives]

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Dynamic Allocation Engine

The Zino Dynamic Allocation Engine evaluates yield opportunities and adjusts vault allocations accordingly. If Uniswap LP yields outperform lending, more ETH is routed to Uniswap. If lending becomes safer and more lucrative, allocations shift to Aave. Rebalancing is automated and governed by performance oracles and safety thresholds.

This ensures users always benefit from the most efficient deployment of their capital, without needing to manually move assets between protocols.

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Hedging Risk with Strategic Diversification

Zino Finance is committed to maintaining a risk-conscious architecture. To that end, no single strategy or protocol dominates the vault allocation. Each Smart Vault is diversified across multiple strategies and partners, reducing exposure to smart contract vulnerabilities, impermanent loss, or liquidity crunches in any single protocol.

Benefits of this approach:

• Mitigated Protocol Risk: Avoid reliance on any single DeFi partner.

• Resilient Performance: Adaptable to market shifts and protocol downtimes.

• Optimized Returns: Balances risk-adjusted yield potential.