Risk-On Vaults (Coming Soon)
Tharwa’s Risk-On Vaults are the gateway to real-world yield. These vaults don’t rely on token emissions or farming loops. Instead, they offer structured, fixed-term products that generate returns through diversified portfolios of real assets. These vaults are not live yet, but they’re a core part of our roadmap, enabling structured yield without the risks of DeFi farming or lending loops.
Each vault behaves like a tokenized bond. Users deposit thUSD, receive a vault receipt token in return, and redeem it at maturity for principal plus yield. Under the hood, that capital is deployed into an actively managed portfolio of RWAs, optimized for performance and downside protection.
How the Vaults Work
Deposit Users lock thUSD into a vault with a defined term - typically 90, 180, 365, or up to 1461 days (four years).
Receive ERC-1155 Receipt Token Upon deposit, users receive a vault token representing their position. These tokens can be held to maturity or traded on secondary markets.
Capital Deployment The deposited thUSD is allocated into a diversified mix of real-world assets. Portfolio decisions are managed by the Confluence Engine, using AI and quantitative models to adjust risk exposure dynamically.
Maturity & Redemption At the end of the lock period, users can redeem their receipt token for principal plus accumulated yield in thUSD.
Vault Structure & Terms
Fixed Duration: Lock periods from 90 days to 4 years
Predefined Yields: Calculated based on asset allocation and duration
Diversified Exposure: T-bills, real estate, gold, and capped oil exposure
Tokenized Access: Vault tokens (ERC-1155) are tradable for optional early exit
This structure gives users exposure to real returns without needing to manage complex strategies themselves. All yield is derived from real-world asset flows — not inflationary emissions.
Dynamic Risk Management
What sets Tharwa’s vaults apart is the underlying asset engine. Deposited capital is actively deployed into a portfolio optimized using Conditional Value at Risk (CVaR), a method focused on tail-risk protection.
The Confluence Engine continuously:
Analyzes macro conditions and asset-level data using multi-agent AI
Rebalances the portfolio to reduce exposure to underperforming or volatile sectors
Adjusts allocation weights to optimize risk-adjusted yield, not just raw return
This means that even long-dated vaults benefit from ongoing risk monitoring and adaptive allocation — unlike static token baskets or passive lending platforms.
Secondary Liquidity Access
Vault tokens are ERC-1155 standard, making them tradable on Tharwa’s OTC marketplace. This gives users an option to exit early or rebalance their positions based on personal liquidity needs.
Early liquidity doesn’t require a bonding curve or slippage-heavy AMM mechanics. Instead, users can post bids and offers or accept quotes directly from the protocol or other participants.
Vault Segmentation: Sharia-Compliant and Global Market Strategies
Tharwa’s architecture supports multiple vault categories to meet the needs of different users and jurisdictions.
Sharia-Compliant Vaults These will be structured in alignment with Islamic finance principles. They will exclude interest-based instruments, rely on asset-backed structures, and may include sukuk as part of the portfolio. While not yet certified, Tharwa is building this path to offer ethically aligned access for users seeking Sharia-compliant yield.
Global Market Vaults These vaults are built for performance. Backed by a globally diversified portfolio, they include yield-bearing instruments like U.S. Treasury bills, UAE real estate, gold, and tightly controlled exposure to commodities like oil. These vaults target higher risk-adjusted returns for users not constrained by religious or regional compliance mandates.
This segmentation allows Tharwa to serve both compliance-sensitive investors and high-yield seekers without compromising on risk discipline or performance.
Who Are These Vaults For?
DeFi users seeking better yield with manageable risk
DAOs and protocol treasuries looking for structured, long-term capital deployment
Crypto-native capital that wants real yield from real assets
Institutions requiring structured, fixed-term returns with transparency and custody options
Islamic finance participants looking for on-chain yield that aligns with faith-based principles
Whether you're a solo degen or a multi-million dollar treasury, vaults provide a scalable, stable foundation for earning real yield on-chain.
When Will Vaults Go Live?
Risk-On Vaults are part of Phase 1–2 of the Tharwa roadmap. Smart contracts, UI, and vault logic are being finalized now. Audits, asset integrations, and staged launches will follow once vault-specific liquidity is seeded.
Stay tuned for launch details and testnet access.
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