KNOX is a protocol offering fixed/defined-yield vaults split into Senior and Junior risk tranches, designed to create clearer risk tiers and more predictable yield outcomes onchain.
Most onchain yield is variable/floating and hard to predict. KNOX solves this by separating risk into tranches, giving users clear choices: safety/stability-first (Senior) or upside-first (Junior).
TBD - KNOX will have support for multiple chains and assets that will be identified within each vault
Currently USDC. Future is TBD per vault. Vaults will specify accepted deposit assets (e.g., stablecoins like USDC/USDT, ETH, BTC or other approved assets). The UI will show asset, decimals, caps, and risks for each vault.
A Senior deposit is a position in the priority tranche of a vault. Senior is designed to have lower risk than Junior and to receive repayment first in the distribution waterfall.
A Junior deposit is a position with higher upside yield than Senior deposits but also in the first-loss / residual tranche of a vault. Junior receives the remaining upside after Senior’s defined payout is satisfied and takes losses first (if any) in order to backstop senior fixed rates
KNOX yield comes from the underlying strategy each vault deploys into (e.g., curated onchain credit, liquidity, or other yield-bearing positions). The exact sources are vault-specific and will be disclosed per vault.
When you deposit, you receive a tranche position representation (shares/receipt token, TBD implementation). Your shares represent a pro-rata claim on your tranche’s final value. At maturity (and after vault finalization), you redeem shares for principal + tranche-allocated yield.