vNEKO
The vNEKO Vault
What is vNEKO?
The vNEKO Vault represents a capital-efficient yield engine built on top of the NEKO token. When you stake NEKO into the vault, you receive vNEKO—a liquid share token redeemable 1:1 for NEKO after a 7-day cooldown period. This architecture unlocks multiple simultaneous yield streams while maintaining robust risk controls.
vNEKO isn't just a wrapper. It's an actively managed position that deploys your capital across high-efficiency strategies on both HyperEVM and HyperCore, generating real yield via arbitrage that autocompounds directly into your NEKO holdings.
The Goal of vNEKO?
The vNEKO vault increases the value of 1 vNEKO relative to 1 NEKO through diversified real yield generation.
Multi-Strategy Approach:
Our multi-agent system runs parallel yield strategies:
Volatility Farming of Neko on the orderbook
Arbitrage between vNEKO/HYPE and NEKO/HYPE pairs on the AMM
Future Implementations:
Lending rates from Morpho markets
Liquidation profits across DeFi protocols
PT-implied yields from principal token discounts
LP fees & Token Emissions from AMMs
Treasury Yield from stablecoins that redistribute the the t-bill yield
The Flywheel:
As yield accumulates, vNEKO's price-per-share grows beyond 1:1 with NEKO. This widening spread makes arbitrage more profitable and consistent. More profitable arbitrage generates more yield, which further increases the spread. The cycle compounds.
The result: diversified, resilient real yield that autocompounds into your position while maintaining 1:1 redeemability.
Why Stake in the Vault?
Real Yield, Autocompounded
The vault generates yield from actual market activity—not token emissions. Profits from market making, volatility farming, and arbitrage are continuously reinvested into NEKO and added to your position. You earn more NEKO, not more dollars.
Exclusive Alpha Access
vNEKO holders gain early or exclusive access to Neko's premium products, gated by your vNEKO balance:
Vibe Trading: AI-powered sentiment analysis and execution
Neko Chat: Natural language DeFi interface
Leveraged LP Farming: Enhanced yield strategies on AMMs
[Classified]: Reserved for whales
Enhanced Liquidity & Reduced Slippage
Vault strategies actively provide liquidity and tighten spreads on NEKO markets across HyperCore and HyperEVM. This benefits the entire ecosystem while generating returns for participants.
How It Works
Phase 0: RubFi Market Making
In the initial phase, approximately 60-70% of staked NEKO is deployed to the RubFi HyperCore contract. RubFi executes sophisticated market-making strategies on the NEKO spot market:
Increases trading volume through active quoting
Deepens orderbook liquidity by maintaining tight spreads
Reduces bid-ask spread for better execution
RubFi farms volatility on the orderbook and returns profits to vault participants as autocompounded NEKO. This creates a flywheel: better liquidity attracts more traders, generating more volume, which produces more yield.
Phase 1: Volatility Farming & Parity Arbitrage
Phase 1 introduces two additional yield engines built around proprietary Morpho markets.
Leveraged Volatility Farming on PRJX AMMs
The vault supplies liquidity to vNEKO/HYPE and NEKO/HYPE pools on PRJX, Hyperliquid's native AMM. Concentrated liquidity positions capture trading fees while the vault's rebalancing agents optimize range placement based on market conditions.
Leveraged Parity Arbitrage
Neko deploys two private Morpho V2 isolated markets:
vNEKO collateral → borrow HYPE
NEKO collateral → borrow HYPE
This structure enables capital-efficient arbitrage of the vNEKO/NEKO spread. The vault borrows HYPE using vNEKO as collateral, swaps HYPE for Neko on the open market when vNEKO trades at a premium, then returns the position. The spread gets captured and autocompounded into participants' balances.
If vNEKO trades at a discount below 1:1 redemption value, the strategy reverses: borrow HYPE against NEKO collateral, buy discounted vNEKO, and redeem for Neko at par. This mechanism keeps vNEKO anchored near intrinsic value while extracting yield from deviations.
Phase 2: Controlled Leverage
After Phase 1 stabilizes, the vault introduces moderate leverage (≤1.2× initially, potentially scaling to 1.5×+) to amplify returns on volatility farming positions. Leverage remains tightly controlled with health factor targets of 2.0 and hard minimums of 1.6.
Yield Mechanics
Autocompounding Flow
Strategies generate profits in HYPE, USD, and Neko
Profits are routed to the vault's autocompound module
The module market-buys NEKO using accumulated profits
Purchased NEKO is distributed pro-rata to all vNEKO holders
Your vNEKO share becomes redeemable for more NEKO
This increases the vault's price-per-share (PPS) over time. You hold the same number of vNEKO shares, but each share is backed by more NEKO.
Fee Structure
Management fee: 0.0% annual on AUM
Performance fee: 0.0% of distributed yield
Default routing: 100% of net yield buys and locks NEKO
All profits are kept for users which the yield is then utilized to buyback Neko and autocompound back into the vault.
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