Royco Dawn is a non-custodial risk-tranching protocol that takes a given yield source — a lending market, staking deposit, or tokenized RWA — and splits it into two risk tranches. Senior depositors earn yield with a smart-contract-enforced downside buffer. Junior depositors absorb first losses in exchange for a higher yield premium. All parameters are enforced on-chain with no manual intervention.Documentation Index
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Introduction
Learn what Royco Dawn is, how the two tranches work, and why the YDM creates a self-balancing yield system.
How Dawn Works
Understand the tranching mechanism, coverage requirements, and how yield is distributed between Senior and Junior.
Vault Products
Explore srRoyUSDC and roywstETH — Royco’s managed vaults curated by Dialectic.
Protocol Mechanics
Deep dive into the Yield Distribution Model, utilization curve, and adaptive yield adjustments.
Deposits & Withdrawals
Learn how to deposit into tranches or vaults, and how the 30-day withdrawal epoch works.
Risk Framework
Review the full risk landscape: smart contract, underlying strategy, vault-level, and operational risks.
Key Addresses
Find all deployed contract addresses for the Royco Dawn protocol.
FAQ
Answers to common questions about tranches, vaults, withdrawals, and risk.
How It Works
A yield source is made available
The Royco Foundation evaluates and onboards yield sources — lending markets, staking strategies, or tokenized RWAs — based on audit status, time since deployment, minimum size, and risk scoring.
A Dawn market is created
A tranche market is deployed on top of the yield source. Coverage minimums, utilization targets, and yield curve parameters are set per market.
Depositors choose their tranche
Senior depositors receive protected yield backed by the Junior buffer. Junior depositors co-invest alongside Senior and earn a risk premium for taking first-loss exposure.
The Two Tranches
Senior Tranche
Earns yield with smart-contract-enforced downside coverage. Junior capital absorbs losses before Senior is ever impacted. A defined minimum Junior buffer is maintained at all times.
Junior Tranche
Earns higher yield by acting as first-loss capital. Receives a risk premium paid by Senior in exchange for absorbing any drawdown from the first dollar.