How Does Re7 Labs Work?

Multi-protocol vault curator managing allocations across Morpho Blue, Euler v2, Silo, Mellow, and Kamino

Re7 Labs curates 100+ pools across 14 chains by selecting collateral assets, setting LTV parameters, and allocating depositor capital to lending markets. The curator earns a 20% performance fee on yield generated. Timelocks of 24-48h protect depositors from abrupt reallocations.

Re7 Risk Index — in-house risk scoring framework covering technical, economic, and systemic risk dimensions

Re7 Labs maintains a proprietary risk scoring framework (Re7 Risk Index) that evaluates DeFi assets across contract audits, oracle infrastructure, admin control analysis, liquidity depth, utilization models, rate sensitivity, governance attack surfaces, and inter-protocol dependencies. Used to guide vault allocation decisions.

ERC-4626 vault aggregating across multiple isolated Morpho Blue lending markets

Re7 WETH and Re7 USDT vaults on Morpho Blue allocate depositor capital across multiple isolated lending markets with diverse LRT/LST collateral types. Vault rebalances allocations according to curator risk and yield assessments.

Pyth Network pull-based oracle + Oval (UMA) for MEV-protected price feeds on Morpho vaults

Re7 Labs selected Pyth Network as primary oracle for Morpho vaults, with Oval providing an MEV-capture oracle layer. Use of Pyth represents a departure from Chainlink-only approaches in Morpho. Multi-oracle architecture increases both robustness and complexity.

Curator multisig with 24-48h timelocks on collateral and allocation changes

All vault strategy changes (collateral additions, market reallocations, supply cap changes) go through a multisig controlled by Re7 Labs with enforced timelocks. Depositors can exit during the timelock window if they disagree with proposed changes.

20% performance fee on vault yield with no management fee

Re7 Labs charges a 20% performance fee on yield generated by its vaults (e.g., Re7 WETH Morpho vault). There is no base AUM management fee, aligning curator incentives with depositor returns, though the 20% take is at the high end of the curator market.

Stream Finance collapse demonstrated this failure mode: xUSD collateral depegged 77% while positions were locked in illiquid markets, preventing liquidations from clearing bad debt. Re7 Labs' $27.4M exposure validated that curator due diligence did not catch circular collateral structures.

The same underlying collateral (deUSD, sdeUSD) created simultaneous bad debt positions across both Euler and Morpho markets. Cross-protocol contagion means a single collateral failure can impact all vaults where that asset appears, regardless of per-vault isolation.

Pyth uses a pull-based architecture where prices are only updated on-chain when requested. If stale prices persist during a rapid collateral depeg, liquidation bots may not receive accurate price signals, delaying liquidations and accumulating bad debt — as happened with the xUSD incident.

Timelocks designed to protect depositors from abrupt changes also prevent curators from emergency-removing deteriorating collateral quickly. During the Stream Finance incident, Re7 Labs could not immediately exit affected positions, resulting in prolonged exposure.

Re7 Labs serves both institutional clients (separate managed accounts) and retail vault depositors. If a collateral decision benefits institutional positions at the expense of vault depositors, the curator's C&D response to the Stream Finance whistleblower suggests limited accountability mechanisms to detect or prevent this.