Architecture

The system operates on a trust-minimized architecture separating Decision Making from Execution:

1. Ditto Keeper (Off-chain): Watches yield opportunities across the connected protocols and proposes a new allocation.

2. APR Oracle (On-chain): Snapshots realized APRs from underlying protocols to prevent manipulation.

3. Rebalance execution (On-chain): The vault's own keeper-gated executeRebalance applies a proposed allocation. It only goes through if the on-chain estimator scores the new allocation above the current one by a configured margin, and a cooldown applies between rebalances.

4. Vault (ERC-4626): Atomically executes deposits/withdrawals across strategies.

Security Measures

• Non-Custodial: User funds are held in the smart contract, never by Ditto or the integrator.

• Atomic Execution: Rebalances happen in a single transaction.

• Slippage Protection: The vault snapshots Total Value Locked (TVL) before and after every rebalance.

• Reward Debt Model: Protocol fees are minted exclusively from yield. The principal deposit is never touched.

• Fail-closed guards: A price guard and a protocol blocklist guard must hold fresh state. If that state goes stale, or a guard reports a problem, deposits and rebalances are blocked. Withdrawals are never gated by the guards.