Allocate

In MORE Vaults, the concepts of allocation, rebalancing, and migration all revolve around the same fundamental actions: depositing and withdrawing.

The protocol itself does not implement or facilitate the implementation of any on-chain strategy logic; all decisions such as what assets to hold, when to rebalance, or how to exit a leveraged position are handled individually by Curators. Curators call the relevant functions in each Vault Facet to execute a strategy.

Basic Facet Mechanics

• deploy() The diamond is instructed to deploy tokens into a facet, receiving share tokens (ERC-4626) that represent their proportional claim on the facet's underlying assets. Allocation is determined off chain; the facet simply receives deposits, issues shares in exchange and records how many shares each depositor holds.

• withdraw() The diamond redeems share tokens to retrieve the underlying assets in a facet.

Rebalancing is a matter of withdrawing from one facet, possibly swapping assets and subsequently, depositing those assets into the new strategy.

Exiting Leveraged Positions

If a user has an open leveraged position, it must be unwound before assets can be withdrawn. In order to avoid this complexity, users can use flash loans in a single transaction as well as the multicall to exit such a position:

1. Obtain a Flash Loan: Borrow enough to cover the outstanding debt.

2. Repay Leveraged Debt: Settle the debt so collateral is released.

3. Return the Flash Loan: Immediately pay back the borrowed amount.

4. Withdraw: With no debt, the user can now withdraw collateral from the vault (or the underlying protocol).

5. Re-Deposit: Optionally deposit the released assets into a new vault or strategy using another deploy() call.

Because all steps are bundled atomically, if any step fails, the transaction reverts and no state change occurs.