🟠vltCORE

VaultLayer's Core Dual-Staking Aggregation Protocol

Overview

vltCORE is VaultLayer’s dual-staking aggregator and yield optimizer protocol. It enables users to stake Bitcoin (BTC) on CoreDAO’s Layer 1 while depositing CORE to maximize rewards by hitting CoreDAO’s highest yield tier. The protocol issues vltCORE tokens representing proportional shares of pooled CORE deposits, creating a liquid, tradeable yield-bearing asset that helps users access DeFi functionality without compromising Bitcoin’s security or liquidity.

Features

• ERC-4626 Standard: Implements vltCORE as an ERC-4626 vault shares token with minting and burning functionalities.

• Bitcoin-backed yield: Users earn optimized staking rewards by maintaining a 1:24000 BTC-to-CORE ratio.

• Liquidity access: Tokenized vltCORE shares can be traded, staked, or used as collateral.

• Automated rebalancing: Ensures rewards are dynamically distributed between BTC stakers and CORE depositors.

• Staking and delegation: Facilitates CORE staking via CoreDAO’s staking mechanism.

• BTC transaction validation: Records BTC stakes and tracks rewards through off-chain verification.

Why We Built vltCORE

Imagine Alice stakes her BTC via CoreDAO. It’s safe but locked for months, and she's stuck waiting. Meanwhile, CoreDAO offers higher rewards if you also stake CORE, maintaining a BTC:CORE ratio of 1:24,000. Most users don’t meet that, leaving rewards on the table.

So VaultLayer asked:

“What if we could make staked BTC liquid and optimize rewards—without extra work for users?”

This led to:

• Smart Vaults: Wallets controlled by NFTs, enabling BTC staking from programmable, non-custodial vaults.

• vltCORE: A tokenized aggregator that balances CORE deposits to unlock the top reward tier and make staking DeFi-friendly.

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How It Works

Smart Vaults

• Each Smart Vault is an NFT-bound decentralized wallet (via Lit Protocol).

• Users mint a Smart Vault, deposit BTC, and initiate a time-locked CLTV transaction to stake BTC on CoreDAO.

• BTC remains non-custodial—you retain full ownership.

CORE Staking via vltCORE

• Other users can deposit CORE into the VaultLayer protocol.

• In return, they receive vltCORE tokens, which:

  • Represent a share of the pooled staking rewards.

  • Are liquid and tradeable.

• The deposited CORE is staked on CoreDAO via delegated smart contracts.

Dual Staking Aggregation

VaultLayer pools:

• BTC staking transactions from Smart Vaults.

• CORE deposits from vltCORE users.

It then uses this combined position to hit CoreDAO’s top staking tier (1:24,000 BTC:CORE), maximizing reward distribution for all participants.

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Rewards Mechanism

Balanced Incentives with Tiers and Grades

To keep things fair and efficient:

• VaultLayer measures the BTC:CORE ratio.

• A Grade System adjusts how rewards are split:

  • Too much CORE? BTC stakers get more.

  • Too much BTC? CORE depositors get more.

  • Balanced? Everyone earns optimal rewards.

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Delegator Sub-Contracts

CoreDAO has limits on how many BTC transactions a single address can handle. VaultLayer solves this by:

• Creating a pool of DualDelegator sub-contracts.

• Spreading BTC txIDs across them.

• Aggregating all staking rewards back into the vltCORE vault.

This design ensures scalability and compliance with CoreDAO infrastructure.

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Key Benefits for Users

User Type	Action	Outcome
Alice	Stakes BTC via Smart Vault	Earns yield, keeps custody, receives tradable NFT
Charles	Deposits CORE	Receives vltCORE, earns rewards from both CORE and BTC staking
Everyone	Uses vltCORE or NFT	Access liquidity, trade or lend without stopping reward accrual

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Technical Architecture

• Smart Vaults (NFTs): Hold BTC and initiate staking transactions.

• vltCORE Contract: ERC-4626 vault contract issuing liquid yield-bearing shares.

• Oracle Agent: Verifies BTC txIDs and syncs rewards cross-chain.

• DualDelegator Contracts: Scale BTC validation per CoreDAO limits.

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Use Cases

1. Yield Maximization: Combine BTC + CORE to hit the best reward tier.

2. Liquidity Access: Use BTC staked positions as collateral in VaultLayer’s NFT loan market.

3. Cross-Chain Exposure: EVM users can mint Smart Vaults from Arbitrum, Avalanche, etc.

4. Automation: Delegate strategy to Vaulter AI for passive BTC yield farming.

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Conclusion

VaultLayer’s vltCORE system turns passive BTC staking into an active, yield-maximizing, liquid strategy—powered by Smart Vaults, automated agents, and a scalable dual staking model.

Stake BTC. Deposit CORE. Earn more—together.