# System Architecture

CurveYield 2.0 is built as modular liquidity infrastructure.

The system uses proven DeFi primitives as foundations and adds CurveYield-specific coordination around economics, ownership, automation, and cross-chain accounting.

## Core architecture

```
Users / Protocols / DAO
        |
        v
CurveYield DEX  <---->  Vault Layer  <---->  Credit Layer
        |                    |                  |
        v                    v                  v
Fee Settlement       Yield Strategies      Lending Markets
        |                    |                  |
        v                    v                  v
Permanent POL       BoostHub / Keepers     cyUSD / Borrow Liquidity
        |                    |                  |
        +----------> DAO Treasury <---------+
                         |
                         v
              Cross-Chain Governance
              Cross-Chain Vault Assets
```

## Liquidity Layer

The liquidity layer is the market surface of CurveYield.

CurveYield DEX is designed around unmodified Balancer V3-style pool contracts and adds CurveYield support contracts for pool creation, fee policy, settlement, creator fees, partner fees, routing, and permanent protocol-owned liquidity. Public contract references will be updated as each CurveYield-owned deployment is finalized.

## Vault Layer

The vault layer turns complex strategies into simpler user-facing shares.

Yearn V3-style vaults provide standard ERC4626 accounting and strategy migration. IPOR Fusion-style vaults provide controlled route execution through fuses, balance fuses, price feeds, substrates, and governance-managed permissions.

## Credit Layer

The credit layer increases capital efficiency by allowing approved productive collateral to support borrowing markets.

Collateral can include vault shares, yield-bearing LP tokens, liquid locker tokens, and other productive positions where pricing, liquidity, and liquidation assumptions are strong enough.

## Cross-Chain Layer

The cross-chain layer extends CurveYield vault assets across supported EVM chains.

The bridge design uses a Frax-style LayerZero V2 OFT/adapter model and adds rate publishing so remote chains can understand vault PPS and underlying value without duplicating every pricing route locally.

## Governance and Automation Layer

CurveYield is designed for DAO-controlled ownership with automation handling routine execution.

Governance controls system parameters, treasuries, fee routing, risk settings, incentive policies, and ownership paths. Keepers handle bounded operations such as harvesting, compounding, fee settlement, reward mode selection, rate publication, and gas top-ups.

## Revenue flow

CurveYield can route value from pools, vaults, credit markets, bridge activity, partner programs, treasury positions, and approved automation. The canonical economic model is maintained in [Revenue and Tokenomics](/economics/revenue-and-tokenomics.md).

## Design principle

CurveYield does not need every product to use every layer. The architecture is modular. A pool can exist without a credit market. A vault can exist before it becomes collateral. A bridge route can support selected vault assets. A partner integration can use only the pieces it needs.

The advantage appears when compatible layers are connected and the same liquidity becomes useful across trading, yield, credit, treasury, and governance surfaces.


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