Skip to main content

Rehypothecation

Rehypothecation is an advanced module, not part of Ollo's core perpetuals baseline.

Status​

Rehypothecation is experimental unless it is explicitly enabled and separately disclosed for a given environment.

Design Intent​

The idea is to deploy idle or explicitly reusable collateral into yield-generating strategies while keeping the margin system legible.

Three documented constraints define the module:

  • Reuse should be explicit or opt-in
  • Hard limits should bound how much collateral can be reused
  • Failure modes should be segregated from core trading solvency

Documented Architecture​

The documented architecture uses an ERC-4626-style structure in which:

  • A central vault holding user shares
  • Strategy vaults that deploy capital externally
  • Debt accounting for deployed capital versus idle liquidity

Main Risks​

  • Strategy loss
  • Withdrawal latency
  • Dependency on privileged operators or keepers
  • Hidden leverage if reuse rules are not explicit

Product Boundary​

Rehypothecation is not part of Ollo's core perpetuals product. It becomes relevant only in environments where it is explicitly enabled.