How Cobo Empowered Vectis Finance to Build Robust and Secured DeFi Infrastructure

Client Overview

Vectis Finance is a cutting-edge decentralized finance (DeFi) platform offering advanced yield optimization strategies led by ACM Quant as the principal strategy contributor, delivering high performance with no price exposure. Built on the Solana network, Vectis combines innovative mechanisms with robust risk management to deliver sustainable, high-performance solutions for digital asset holders.

As Vectis scaled their sophisticated DeFi products, the need arose for institutional-grade wallet infrastructure to support complex cross-chain strategy execution while maintaining the stringent security standards users expect. 

Vectis's delta-neutral vault attracted up to $30 million in total value locked at its peak, exemplifying the critical flywheel: secure custody infrastructure drives user deposits and builds trust, while growing TVL demands even stronger security - each reinforcing the other to enable the platform to scale confidently.

The Challenge

Scaling a cross-platform, delta-neutral DeFi vault required an operational foundation that delivered both security and flexibility without compromise. 

Vectis Finance faced critical infrastructure decisions while developing their innovative JLP Hyperloop Vault strategy. The team identified several key challenges that needed to be overcome to ensure the vault’s success:

Security & Trust Requirements

Custody limitations at scale: Traditional multi-signature wallets and internal custody systems, while widely used in DeFi, introduced scaling challenges around private key management, fragmented access controls, and operational resilience. As Vectis scaled toward institutional adoption with increasingly sophisticated vault strategies, these limitations became unacceptable. The team needed a custody framework purpose-built for eliminating single points of failure and supporting complex strategy execution without manual friction.

Raising the bar on asset protection: With vault designs like its delta-neutral strategy already demonstrating strong capital traction, Vectis recognized that user trust and future scale required controls that exceeded typical DeFi norms. To attract and retain capital from high-value users, the platform needed independently verifiable safeguards, policy enforcement, and custodial oversight aligned with institutional-grade standards.

Smart contract execution with institutional oversight: The JLP Hyperloop Vault executes advanced cross-platform strategies, integrating with Jupiter (on Solana) for capital routing and Hyperliquid (a performant perps DEX) for hedging exposure. These interactions involve fast-moving positions and non-custodial automation that require secure, policy-bound execution environments. Cobo’s infrastructure allowed Vectis to route these calls through a tamper-resistant custody layer with full auditability—critical for investor confidence.

Operational Complexity

Reliable automation for strategy execution: Automated rebalancing, hedge management, and position monitoring were core to the performance of the JLP Hyperloop Vault. These workflows depended on reliable, always-on wallet interactions that could support fast-paced strategy cycles without manual key access or signing delays.

Efficient asset movement across ecosystems: Vectis’s strategy spanned multiple DeFi platforms, which required custody infrastructure capable of orchestrating secure, frictionless capital flows across chains and execution layers. Any fragmentation or delay in asset movement could introduce slippage, misalignment, or missed opportunities.

Speed without operational compromise: Reducing human error while maintaining execution speed was critical to vault performance. Vectis needed infrastructure that enabled non-custodial automation with built-in safeguards, ensuring fast response to market shifts while minimizing operational and reputational risk.

Infrastructure for Growth

Custody built for transparency and auditability: To build trust at scale, Vectis required infrastructure with transparent, on-chain visibility and full audit trails for all vault operations. Governance, policy enforcement, and transaction history had to be observable and defensible—not just secure.

Scaling with institutional-grade discipline: As the platform prepared for broader user adoption and increased capital inflow, security could not be an afterthought. Vectis sought best-in-class custody practices that would support long-term growth, regulatory readiness, and the confidence of compliance-minded partners.

The Cobo Solution

Vectis Finance selected Cobo as their institutional custodian, creating a secure, transparent, and automated operational environment for all asset transfers and wallet interactions within the JLP HyperLoop Vault. With strategy execution spanning high-frequency interactions across Jupiter and Hyperliquid, Vectis needed custody infrastructure that not only eliminated key management risk, but also aligned tightly with their automation and governance workflows.

Key Security Features

Institutional-Grade MPC Custody: Unlike many DeFi vaults that rely on multi-signature wallets or internal custody systems, Vectis deployed Cobo's MPC (Multi-Party Computation) Wallet infrastructure to eliminate single point of failure in private key management. This provided enterprise-grade protection of user-funds and a digital asset custody foundation purpose-built for scale.  

Secure environment for automated execution:  Cobo's institutional-grade MPC wallet infrastructure enabled Vectis to operate its strategy logic, comprising rebalancing, hedging, and position monitoring, within a trusted, secure framework. This ensured automated flows could run reliably and without manual risk exposure.

• Protected Asset Management: A secure custody layer safeguarding user funds during vault operations.

• Safe Automation Execution: A trusted environment enabling Vectis's automation infrastructure to handle rebalancing, hedge management, and position monitoring without compromise.

• Transaction Visibility: Full visibility into all asset transfers and wallet interactions with Jupiter and Hyperliquid, enabling oversight and control.

• Institutional-Grade Risk Controls:  Cobo’s MPC Wallet infrastructure offered advanced operational guardrails to reduce risk and enforce governance.

• Granular Permission Management: Multi-party approval workflows ensuring no single point of failure, where no individual could unilaterally control funds.

• Transaction Policy Engine: Customizable parameter controls and whitelisting mechanisms aligned with Vecti’s internal parameters.

• Operational Transparency: Transaction history for all vault operations - critical for maintaining trust between stakeholders.

Results & Impact

With Cobo’s MPC Wallet infrastructure underpinning secure automation and operational control, Vectis successfully launched its JLP Hyperloop Vault, combining capital efficiency with enterprise-grade risk management, achieving: 

• Enhanced Security Positioning: A clear point of differentiation, enabling Vectis to exceed the custody standards typical of DeFi vaults.

• Operational Reliability: A secure automation infrastructure enabling complex rebalancing and hedging strategies

• User Trust: A trusted, industry-recognized custodian backing the vault, providing confidence for retail and institutional depositors alike.

• Capital-efficient yield generation:  The ability to execute leveraged delta-neutral strategies within an institutional-grade digital asset security framework  optimized for safety and performance. 

Why Vectis Chose Cobo

And why the partnership works from both sides

"Security is paramount when users trust us with their assets. Cobo's institutional custody infrastructure allowed us to move beyond the limitations of multi-signature wallets and deliver the level of fund safety our users deserve. Their secure operational environment supports our automated execution strategies while maintaining the transparency and control we need." - Freda, Head of Growth, Vectis

Competitive Differentiators

• Best-in-Class Security: Industry-leading custodian trusted by institutional clients globally

• Reduced Key Management Risk: MPC technology eliminating single points of failure inherent in traditional custody approaches

• Seamless Automation Support: Infrastructure designed to support complex DeFi operations and smart contract interactions

• APAC Expertise: Strong regional presence with deep understanding of Solana and Asian DeFi ecosystems

About Cobo

Cobo provides institutional-grade digital asset custody and infrastructure solutions trusted by DeFi platforms, trading firms, and blockchain protocols globally. Our MPC technology and unified wallet infrastructure enable sophisticated multi-chain strategies while maintaining enterprise security standards that exceed typical DeFi custody solutions.

Ready to scale your DeFi operations with institutional-grade security? 

Contact our team today.

Learn More

About Vectis Finance:

• Official Documentation

• JLP Hyperloop Vault Strategy

About Cobo MPC Wallets:

• Product Overview

• Introductory Video

• Quick Start Guide

• Product Manuals

• Developer Documentation

• API Reference

• Python SDK