This is the starting point for the low-risk DeFi protocol KNOX.

Intro

What is KNOX?

KNOX is a low-risk DeFi protocol that lets users choose between two risk/return profiles. Senior (more stable, priority position) and Junior (higher risk, higher upside). Users deposit into risk-tranched vaults backed by curated yield sources (Morpho, AAVE, Yearn, etc.).

KNOX is designed to take floating/variable onchain yield and turn it into fixed income: predictable outcomes, clear maturity dates, and explicit risk tiers.

See also our FAQ for the most commonly asked questions.

How it works?

At a high level:

1. A vault is created with:
   • An underlying yield strategy (e.g., curated DeFi credit/blue-chip yield sources)
   • A maturity date
   • Target capacity for Senior and Junior tranches.
2. Users deposit into Senior or Junior.
3. The vault deploys capital into the underlying strategy and accrues yield.
4. At maturity, returns are distributed by tranche rules:
   • Senior gets priority and targets fixed/defined yield (when possible)
   • Junior absorbs first-loss (if any) and receives residual upside after Senior is satisfied. This way, Junior depositors get exposure to leveraged yield through the yield overhead that the Senior principal generates.

Using KNOX:

Basic flow

1. 👛 Connect wallet
2. 📰 Choose vault
3. 🧮 Choose tranche % (Senior / Junior - mix your own “fixed-vs-leveraged yield flavor”)
4. 🏦 Deposit