Hedging Vault

The GEN Hedging Vault (GHV) is an optional, fully autonomous risk management mechanism for GEN holders seeking to reduce exposure to potential GEN price volatility. When users deposit GEN into the GHV, the vault converts those deposits into USDC or other designated stablecoins and allocates them to secured onchain lending strategies.

By holding deposits in USDC, the GHV serves as a downside hedge against GEN price declines. If GEN depreciates during the deposit period, users may withdraw more GEN than initially deposited, benefiting from accumulated yield and the increased purchasing power of USDC. If GEN appreciates, withdrawals may return fewer GEN tokens but preserve greater USDC value, reflecting the GHV’s role as a risk-management instrument.