what's Royco Dawn?
Royco Dawn is an onchain risk-tranching protocol built on top of yield sources such as DeFi vaults, money markets, and RWA funds. It transforms each yield source into two perpetual products: a Senior Tranche that earns the underlying yield with downside protection provided by first-loss Junior capital up to a defined coverage percentage, and a Junior Tranche that supplies this first-loss protection in exchange for a risk premium from Seniors. This design unlocks precise control over onchain capital deployment, allowing investors to match specific risk/return profiles without relying on speculative yields or incentives. By tranching yield opportunities, it creates tailored products for risk-averse LPs seeking protected yield and those willing to bear first-loss for higher premiums.
Royco Dawn's $50k audit competition runs Jan 20-27, 2026.
Links
x.com/roycoprotocolReached $172K in deposits into SavUSD's Junior Tranche.
Received a single deposit of $2M into the Royco Senior Vault.
Joined the Immunefi security ecosystem with a $250,000 bug bounty program.
Rebalanced $400k into savUSD's Senior Tranche via the Royco Senior Vault at 7.1% APR with junior protection.
Holds $18.97M in total value locked.
Integrated with Morpho to enable srRoyUSDC as borrowable collateral, allowing users to borrow pmUSD (a precious metals-backed stablecoin from Raac Finance) against Senior Tranche deposits with $2M capacity.
Audit competition with $50,000 prize pool runs from January 20 to January 27, 2026.
Launched yield tranching protocol February 10, 2026, with Senior and Junior pools, tranching Avant Protocol's savUSD, Autopools' autoUSD, and Neutrl's sNUSD. Undergoing audits.