# BTC YOLO Vault

The **BTC YOLO Vault** is a programmatic BTC accumulation strategy that converts **USDC deposits into BTC over time** using a **value-averaging execution model**.

Instead of purchasing BTC at a constant rate like traditional **Dollar Cost Averaging (DCA)**, the vault dynamically adjusts the **purchase size based on BTC price levels**.

The vault executes purchases automatically until the vault expiry.

At expiry, the vault would have fully deployed its capital into BTC according to the strategy rules. For exact details on expiry, please check all the available vaults [here](https://app.troves.fi/tva).

<a href="https://app.troves.fi/tva" class="button primary">Check YOLO Vaults</a>

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## Strategy Objective

The goal of the vault is to **reduce the average BTC acquisition cost** during volatile or bearish markets.

The strategy achieves this by:

* allocating **larger purchases when BTC price is lower**
* allocating **smaller purchases when BTC price is higher**
* pausing purchases when BTC exceeds predefined thresholds

This mechanism allows the vault to accumulate **more BTC during drawdowns**.

***

## Strategy Model

The vault implements a **value-averaging purchase schedule**.

#### Conceptual Comparison

<figure><img src="https://544104674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpPQw6sLqPpeJkiKP4Ai5%2Fuploads%2F7Yab5ag3uqu8aS3uMxxl%2Fimage.png?alt=media&#x26;token=c91642ff-ef53-4595-a40f-635c8ad478be" alt=""><figcaption></figcaption></figure>

DCA example:

> Every hour → buy $1 BTC

Value averaging example:

> BTC < $50k → buy $10\
> BTC $50k–$70k → buy $3\
> BTC $70k–$100k → buy $1\
> BTC > $100k → pause purchases

This allows the vault to **deploy capital more aggressively during market dips**.

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## Vault Lifecycle

The vault operates between **deployment and expiry**.

#### Lifecycle Flow

<figure><img src="https://544104674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpPQw6sLqPpeJkiKP4Ai5%2Fuploads%2FBGTIuigCCtETqIrZakk3%2Fimage.png?alt=media&#x26;token=9b7ed0b0-10af-4616-b1f8-2a7f5ab2ca82" alt=""><figcaption></figcaption></figure>

***

## Strategy Architecture

<figure><img src="https://544104674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpPQw6sLqPpeJkiKP4Ai5%2Fuploads%2FPen815ZqplsCFMqXYc8m%2Fimage.png?alt=media&#x26;token=7bf1af7c-c180-4406-8693-b7890bb6f040" alt=""><figcaption></figcaption></figure>

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## Purchase Engine

The vault runs a **scheduled execution loop** that evaluates market conditions and performs purchases.

#### Execution Loop

> Every interval (ex: hourly)<br>
>
> 1. Read BTC price from oracle
> 2. Determine price band
> 3. Calculate purchase size
> 4. Execute swap USDC → BTC
> 5. Store BTC in vault

***

## Price Band Allocation Logic

The strategy defines **price bands with associated purchase sizes**.

Example configuration:

<figure><img src="https://544104674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpPQw6sLqPpeJkiKP4Ai5%2Fuploads%2FbSkBrFnY1HuBotycy7yd%2Fimage.png?alt=media&#x26;token=6354cfee-d5cb-4795-9ea1-e266c86ff25b" alt=""><figcaption></figcaption></figure>

The purchase engine selects the allocation rule based on the current BTC price.

#### Simplified Decision Tree

```
if BTC < 50k
    buy large amount

elif 50k ≤ BTC < 70k
    buy medium amount

elif 70k ≤ BTC < 100k
    buy small amount

else
    do not buy
```

This ensures capital is deployed **more efficiently during lower price regimes**.

***

## Strategy Execution Diagram

<figure><img src="https://544104674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpPQw6sLqPpeJkiKP4Ai5%2Fuploads%2FeKhGv0XQZ5Ex9voeSZee%2Fimage.png?alt=media&#x26;token=a091cff9-b7f4-456c-a5cc-3205f2a7abe9" alt=""><figcaption></figcaption></figure>

***

## Capital Deployment Curve

The vault capital is deployed **non-linearly over time**.

Unlike DCA where capital deployment is fixed:

```
DCA capital curve

Time →
|----|----|----|----|----|
  $    $    $    $    $
```

Value averaging adapts to price:

> Value averaging capital curve<br>
>
> Low BTC price → larger allocations\
> High BTC price → smaller allocations

This allows the vault to accumulate **more BTC when markets are weak**.

***

## Oracle Integration

The vault relies on a **BTC price oracle** to determine the active price band.

Oracle feeds may include:

* Starknet price feeds
* external oracle integrations
* DEX TWAP prices

Oracle updates are required for each execution cycle.

***

## Settlement

At vault expiry:

> Remaining USDC (if any) + Accumulated BTC

Users can withdraw their **proportional share of BTC holdings**.

#### Settlement Flow

<figure><img src="https://544104674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpPQw6sLqPpeJkiKP4Ai5%2Fuploads%2FpCWTCiKMx2DKeU1DPKFR%2Fimage.png?alt=media&#x26;token=e6e6383e-5aa2-49f8-8ef0-c54b28c40f6f" alt=""><figcaption></figcaption></figure>

***

## Risk Considerations

The BTC YOLO Vault introduces several strategy-specific risks.

#### Market Risk

BTC price may continue to fall for extended periods.

This may result in unrealized losses.

***

#### Execution Risk

We actively try to manage below risks, however, they may still exist.&#x20;

DEX swaps may experience:

* slippage
* liquidity constraints

***

#### Strategy Risk

The strategy assumes BTC will eventually recover.

This vault is therefore intended for **users with strong long-term BTC conviction**.

***

## Strategy Parameters

<figure><img src="https://544104674-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpPQw6sLqPpeJkiKP4Ai5%2Fuploads%2FYAFgT35zjaEBDbYbM2PB%2Fimage.png?alt=media&#x26;token=36fe3aa5-3228-44d7-a33f-3649ce352270" alt=""><figcaption></figcaption></figure>

***

## Intended User Profile

The BTC YOLO Vault is designed for users who:

* want automated BTC accumulation
* prefer dynamic allocation strategies
* have long-term BTC conviction
* do not want to manually time entries

***

## Key Takeaway

The BTC YOLO Vault is an **experimental accumulation strategy** designed to automate a **value-averaging BTC entry over time**.

Instead of attempting to time the market, the vault uses **price-aware capital deployment** to accumulate BTC more aggressively during market drawdowns.

This creates a systematic mechanism for **long-term BTC believers to accumulate exposure automatically**.