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Overview

Introduction

LayerCover enables curators to build cross-protocol credit funds from a single vault. Curators can allocate capital across lending venues including Morpho Blue, Euler V2, Aave V4, and other on-chain credit markets through a unified allocation framework.

LayerCover provides the infrastructure and marketplace for curators to launch, manage, and distribute these strategies, while depositors gain diversified on-chain credit exposure through a single position.

Two types of funds

Curators choose between two LayerCover product types when they launch.

	Standard Fund	Tranched Fund
What it is	A Morpho V2 vault	A wrapped Morpho V2 vault
Share classes	One ERC-4626 share	Two share classes — `lcSEN` (protected) and `lcJUN` (leveraged premium)
Lender experience	Every lender gets the same APY and the same drawdown	Lenders choose their seniority on the same underlying return stream
Venue routing	Multi-venue via Morpho Blue, Euler V2, and Aave V4 adapters	Identical — same underlying vault and venue mix
Pick when	The curator wants the simplest possible fund — one share token, one return stream	The curator wants to serve both conservative and risk-seeking lenders from the same strategy

Where next

Curator overview: what curating either fund type looks like end-to-end.
Senior tranche · Junior tranche: mechanics of the Tranched Fund's two share classes.