Vault Street primeUSD

Summary

Ketju does not approve Vault Street primeUSD under its class rule for leveraged loops: it pledges fund positions as collateral, borrows against them and reinvests the borrowings toward an indicative 8x leverage target. primeUSD is a permissioned Ethereum carry vault. Valiant puts USDC into tokenized Treasury and investment-grade credit funds and pledges those positions in DeFi lending markets. On Aug. 15, 2026, DefiLlama reported about $6.36M, but size does not decide this memo. Borrowing against collateral again and again magnifies the fund, rate, liquidation, NAV and unwind risks. The rule applies at any size and however well the product is disclosed.

Review triggers
• Ships a separate product whose return does not depend on pledged collateral, borrowing and reinvestment
• The product without leverage publishes binding eligibility and redemption terms, independently reconciled NAV and custody, all authorities, and a withdrawal of the proposed size under stress, compared with named Treasury and credit alternatives

Ketju checks this memo every night and opens a review if its venues or files show a warning or a cited document changes. The first confirmation is due 2026-11-15.

Research

How it works

Vault Street documents primeUSD as a permissioned Ethereum vault token for a leveraged carry strategy. Users approved through KYB deposit USDC. The company puts it into tokenized Treasury and investment-grade credit funds, pledges those positions in DeFi lending markets and reinvests what it borrows. primeUSD is a receipt token for that RWA strategy; Ketju has not opened a full review of it.

Size and holdings

On Aug. 15, 2026, DefiLlama classed Vault Street primeUSD as RWA, on Ethereum only, with about $6.36M of TVL. That figure measures reported size, not quality or how much clients could withdraw. The vault schedule names the same Ethereum token and an indicative 8x leverage target. The repeated borrowing, not the size, is why the class rule applies.

Who controls it and withdrawals

Valiant Digital Assets decides which fund providers, lending markets, collateral mix and leverage to use. Borrowed money is reinvested, so falling fund prices, higher borrowing rates, collateral haircuts or liquidation thresholds can force the vault to cut leverage and pass losses through NAV. Only allowlisted users can deposit, transfer or redeem. A standard redemption targets five business days and can take twenty under stress. Next-day express redemption is not guaranteed and is limited by available cash and a cap of 10% of NAV in total. A withdrawal therefore needs the company to act, the funds to pay out and the lending positions to unwind.

Class rule

The class rule for leveraged loops applies because primeUSD pledges yield assets and reinvests debt again and again to magnify carry toward an indicative 8x target. Ketju does not approve that payoff at any size or level of disclosure. Ketju will review Vault Street again only for a separate product without leverage. That review would cover legal recourse and eligibility, control of the issuer and contracts, NAV, and the underlying funds and custody. It would also check audits and incidents, how allowlisted redemptions have performed, a withdrawal of the proposed size under stress, and named Treasury and credit alternatives without leverage.

Sources

Each claim above comes from one of these sources. Where Ketju could not verify a number, the memo states that.

• Vault Street: primeUSD overview · primary · accessed 2026-08-15
  Supports: permissioned token, USDC deposits, fixed-income collateral, leveraged carry, target leverage, redemption timing
• Vault Street: primeUSD vault schedule · primary · accessed 2026-08-15
  Supports: issuer discretion, eligible underlyings, leverage, NAV, redemption extension, limited liquidity
• Vault Street: primeUSD smart contracts · primary · accessed 2026-08-15
  Supports: Ethereum deployment, token contract, request manager, price storage
• DefiLlama: Vault Street primeUSD protocol data · secondary · accessed 2026-08-15
  Supports: current TVL, Ethereum perimeter, RWA category, survey observation

The asset and the chain

This memo covers the protocol. A position also holds an asset and settles on a chain. Whichever of the three holds the most power over the position decides who can freeze it. These tables describe control and do not judge quality.