So, I was considering where to deposit my USD stablecoins, and I decided on the recently popular Avantis @avantisfi!! This Vault has two tranches with different risk and return profiles (a layered structure that separates risk and return). 🔥 Junior Vault "Aggressive tranche." While you can receive a larger share of the loss distribution when traders lose, you also bear the losses first if the market moves in the opposite direction. It's designed for high risk and high return. 💎 Senior Vault "Defensive tranche." Since the Junior absorbs losses first as a "cushion," it allows for stable operations while keeping direct risk low. Although the share of fee income is smaller, it is designed for better efficiency after risk adjustment. Looking at the current displayed yield (APY), the difference between Junior and Senior is about 2.3%. It wasn't as much of a difference as I imagined, and I got the impression that "the additional yield is small compared to the high risk taken." So, I deposited $100,000 into the Senior Vault this time. Rather than taking high risks, I prioritized stable operations while understanding the mechanism first. In this structure, the gains and losses of the traders are reflected in the entire Vault, and the Junior bears the losses first. Therefore, there is a certain buffer during sudden market fluctuations, which is reassuring. (Of course, in extreme market shocks, the Senior may also incur losses⚠️) This time, I made a deposit as an experimental position to observe the long-term performance of the defensive Senior. If you're interested, check it out here👇 🔗 *DYOR, NFA