Money flow (L1→L4)
Every dollar in YLDX moves through four explicit layers. Deposits flow forward (L1→L4); withdrawals retrace the exact same path back. There is no sideways movement, and every hop is on-chain and verifiable.
The four layers
| Layer | Name | Role |
|---|---|---|
| L1 | Entry | Client on-ramp wallets — where deposits land and where payouts are sent. |
| L2 | Bridge / CEX | Centralized routing layer: Binance / Bybit accounts under Moonrock Capital. Cross-chain and fiat-adjacent routing. |
| L3 | Strategy | The working capital: LP positions and yield strategies across pools (Uniswap, Aave, Morpho, etc.). |
| L4 | Cold | Final custody: 5 sector-based multisig vaults (4-of-6, 24h time-lock). |
Deposit path (forward)
Client → L1 Entry → L2 Bridge/CEX → L3 Strategy (mint LP) → L4 Cold (LP tokens custodied)- Client deposits to an L1 Entry wallet.
- Capital is routed via L2 (CEX/bridge) to the target chain/venue.
- At L3, LP tokens are minted into the scored pools.
- LP tokens are forwarded to the L4 cold multisig for custody.
Withdrawal path (retrace)
L4 Cold (release LP) → L3 unwind to base asset → L2 CEX routing → L1 Entry → Client payout- LP tokens are released from the L4 cold wallet (requires 4-of-6 multisig).
- Positions are unwound at L3 to base assets — exiting the lowest-scored pools first.
- Funds route back through L2 (CEX).
- They arrive at the source L1 Entry wallet and are paid out to the client.
Proof of funds
Because each layer is on-chain, the full path of any deposit or withdrawal can be reconstructed and audited. Live mode reads the real on-chain balances of the L1→L4 wallets, so AUM and proof-of-funds are not self-reported numbers — they are verifiable. See Proof of funds.
Operational guarantees
- No sideways movement. Capital only moves along the L1↔L4 path; it never jumps laterally between unrelated wallets.
- Exit weakness first. Withdrawals always come from the lowest-scored positions, preserving the index's earning power.
- Custody by default. Working capital not actively deployed sits in cold L4 custody, not in hot wallets.