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spectra_model_metavault

Model MetaVault double loop strategy compounding YT yield and leveraging vault shares on Morpho. Compute curator fees, blended allocations, and PT comparison.

Instructions

Model a MetaVault "double loop" strategy for curators.

MetaVaults are ERC-7540 curated vaults that automate LP rollover and compound YT yield back into LP positions. This tool models the economics of leveraging MetaVault shares as collateral on Morpho (or similar lending markets).

Two modes:

  1. Live mode: Provide chain + metavault_address to auto-populate base_apy from the live MetaVault API. All other params can be overridden.

  2. Manual mode: Provide base_apy directly for hypothetical modeling.

The "double loop": Layer 1 (inside vault): YT yield → LP tokens (compounding loop, managed by curator) Layer 2 (on top): MV shares → Morpho collateral → borrow → deposit back (leverage loop)

Because YT compounding raises the base yield, leverage multiplies a higher base — creating a "double loop premium" over raw PT looping.

Dual Morpho Market Strategy: Curators should create TWO Morpho markets for maximum flywheel effect: Market A (PT / underlying): For external users to loop PT. Drives pool volume & LP fees. Market B (MV shares / underlying): For the curator to loop vault shares. Amplifies own capital. These markets reinforce each other — PT demand deepens the pool, deeper pool attracts more loopers, and the curator earns fees on all external deposits flowing through the vault.

Curator economics: The curator EARNS the performance fee on external deposits — this is revenue for managing the vault (rolling positions, compounding YT, maintaining allocations).

Blended allocation: Supports modeling MetaVaults that allocate across both Spectra and Pendle LP positions via pendle_allocation_pct and pendle_lp_apy parameters. Computes blended base APY and warns about manual Pendle rollover requirements.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
chainNoChain where the MetaVault lives. Required with metavault_address for live data.
metavault_addressNoMetaVault contract address. When provided with chain, auto-fetches live APY and TVL as base_apy. Use spectra_list_metavaults to discover addresses.
base_apyNoBase LP APY the MetaVault targets (%), e.g. 12 for 12%. Auto-populated from live data when metavault_address is provided, or required in manual mode.
yt_compounding_apyNoAdditional yield from YT→LP compounding (%), e.g. 3 for 3%. Default 0.
curator_fee_pctNoPerformance fee the curator EARNS as % of vault yield (default 10%). E.g. 10 means curator collects 10% of gross yield as revenue, depositors receive the remaining 90%.
morpho_ltvNoMorpho LTV for MetaVault share collateral (0-1, default 0.86 = 86%)
borrow_rateNoMorpho borrow rate in % APY (default 5%)
max_loopsNoMaximum leverage loops to model (default 5)
capital_usdNoCurator's own capital in USD. Enables curator economics section.
external_deposits_usdNoExternal deposits the curator attracts (USD). The curator earns performance fees on these deposits. Default 0.
days_to_maturityNoAverage pool cycle length in days (default 90). Used for rollover advantage.
compare_pt_apyNoIf provided, show side-by-side comparison with raw PT looping at this APY (%)
pendle_allocation_pctNoPercentage of vault capital allocated to Pendle LP positions (0-100, default 0). When >0, computes blended APY across Spectra and Pendle. Requires pendle_lp_apy.
pendle_lp_apyNoPendle LP APY (%) for the Pendle allocation. Required when pendle_allocation_pct > 0.
Behavior5/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

With no annotations provided, the description carries the full burden and excels. It details the double-loop mechanism, dual Morpho market strategy, curator economics, and blended allocation, providing full behavioral transparency.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness3/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is very long and detailed, covering conceptual explanations (double loop, dual market) that, while valuable, could be truncated or moved to external documentation. Every sentence earns its place, but overall verbosity reduces conciseness.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

Given 14 parameters and no output schema, the description adequately explains inputs and modeling purpose. However, it lacks explicit mention of output format or example results, which would complete the picture.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters5/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100% (baseline 3), but the description adds substantial meaning beyond schema: explains live vs manual mode for chain/metavault_address, curator fee semantics (earned vs cost), and dependencies like pendle_allocation_pct requiring pendle_lp_apy.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description clearly states it models a MetaVault 'double loop' strategy, specifying verb (model), resource (MetaVault strategy), and scope (economics, leverage loops). It distinguishes from sibling tools by focusing on the unique double-loop concept.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Describes two explicit usage modes (live and manual) and provides context for when to use each. However, it lacks explicit exclusions or comparisons to sibling tools like mv_compare_yield or spectra_compare_yield.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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