How Individual Savings Works

Understand the technical foundation behind Individual Savings pools and how your Bitcoin earns yields safely.

Architecture Overview

Individual Savings is built on a simple but powerful smart contract architecture:

You (Wallet)
    ↓
IndividualPool Contract (0xdfBEd2D3efBD2071fD407bF169b5e5533eA90393)
    ↓
YieldAggregator Contract (0x3D28A5eF59Cf3ab8E2E11c0A8031373D46370BE6)
    ↓
MezoIntegration Contract (0x043def502e4A1b867Fd58Df0Ead080B8062cE1c6)
    ↓
Yield Sources (DeFi Protocols, Staking, Liquidity Pools)

Smart Contract Flow

function createPool(string memory name, uint256 goalAmount) external {
    address poolAddress = new IndividualPoolInstance(msg.sender, name, goalAmount);
    userPools[msg.sender] = poolAddress;
    emit PoolCreated(msg.sender, poolAddress, block.timestamp);
}

function deposit(uint256 amount) external onlyOwner {
    MUSD.transferFrom(msg.sender, address(this), amount);
    principal += amount;
    yieldAggregator.deposit(amount);
    emit Deposited(msg.sender, amount, block.timestamp);
}

Yield Sources Explained

Your deposits earn from multiple strategies simultaneously:

1. DeFi Lending Protocols

How it works:

• Your MUSD is lent to borrowers on protocols like Aave, Compound
• Borrowers pay interest
• You earn a portion of that interest

APY Contribution: ~8-12%

Risk Level: Low (over-collateralized loans)

2. Mezo Staking

How it works:

• MUSD is converted to BTC and staked with Mezo validators
• Validators secure the network and earn rewards
• Rewards distributed proportionally to stakers

APY Contribution: ~4-8%

Risk Level: Very Low (native network staking)

3. Liquidity Provision

How it works:

• MUSD paired with other stablecoins in AMM pools (Uniswap, Curve)
• Traders swap tokens and pay fees
• Liquidity providers (you) earn trading fees

APY Contribution: ~2-5%

Risk Level: Low (stablecoin-only pairs)

Security Mechanisms

Your funds are protected by multiple layers of security:

Smart Contract Security

modifier onlyOwner() {
    require(msg.sender == owner, "Only pool owner");
    _;
}

modifier nonReentrant() {
    require(!locked, "Reentrant call");
    locked = true;
    _;
    locked = false;
}

function emergencyWithdraw() external onlyOwner whenPaused {
    // Force withdraw all funds
}

Audited Contracts

All KhipuVault smart contracts have been:

• ✅ Audited by CertiK (June 2025)
• ✅ Reviewed by Mezo security team
• ✅ Tested with 95%+ code coverage
• ✅ Battle-tested on testnet for 6+ months

View Audit Report →

Fund Isolation

Each pool is a separate contract instance:

• Your funds never mix with other users
• A vulnerability in one pool doesn't affect others
• Complete isolation and privacy

On-Chain Transparency

Everything is verifiable on blockchain:

View Contract on Explorer

Visit Mezo Block Explorer and search:

IndividualPool: 0xdfBEd2D3efBD2071fD407bF169b5e5533eA90393

You can see:

• All transactions (deposits, withdrawals, yields)
• Contract source code (verified)
• Event logs (PoolCreated, Deposited, Withdrawn, YieldClaimed)
• Current TVL (Total Value Locked)

Read Contract Data

Use block explorer's "Read Contract" tab:

// Check your balance
balanceOf(yourAddress) → returns MUSD balance

// Check total yields earned
totalYieldsEarned(yourAddress) → returns yield amount

// Check pool status
poolInfo(yourAddress) → returns (name, goal, principal, yields)

Verify Transactions

Every action creates an immutable record:

Gas Optimization

KhipuVault contracts are optimized for low gas costs:

Batch Operations

Instead of claiming yields every block (expensive), yields are:

• Calculated off-chain
• Stored in efficient data structures
• Claimed only when you withdraw (saves gas)

Storage Efficiency

struct Pool {
    uint128 principal;      // Packs into 1 slot
    uint128 yields;         // Packs into same slot
    uint64 createdAt;       // Packs with flags
    bool active;            // Packs with timestamp
}

Smart packing reduces storage costs by ~60%.

Proxy Pattern

Individual pools use minimal proxy pattern (EIP-1167):

• Pool creation costs ~50% less gas
• All pools share same logic contract
• Upgradeable without redeploying

Yield Distribution

How your earnings are calculated and distributed:

Real-Time Calculation

Yields are computed using:

Your Yields = (Your Deposit × Global Yield Rate × Time) - Platform Fee

Example:

• Deposit: 1,000 MUSD
• Global APY: 15%
• Time: 30 days
• Platform Fee: 10%

Gross Yield = 1,000 × 0.15 × (30/365) = 12.33 MUSD
Platform Fee = 12.33 × 0.10 = 1.23 MUSD
Your Yield = 12.33 - 1.23 = 11.10 MUSD

Compounding

Yields auto-compound every block:

Block N:   Balance = 1,000 MUSD
Block N+1: Balance = 1,000.001 MUSD (yield added)
Block N+2: Balance = 1,000.002 MUSD (compounds on 1,000.001)
...

This is continuous compounding, more efficient than daily/weekly compounding.

Claiming vs Auto-Compound

You have two options:

Platform Fee Model

KhipuVault charges a performance fee (not a management fee):

How Fees Work

• Management Fee: 0% - We never charge just for holding your funds
• Performance Fee: 10% of yields - Only when you earn
• Withdrawal Fee: 0% - Take your money out anytime, free
• Deposit Fee: 0% - No cost to deposit

Example:

Gross Yield: 100 MUSD
Platform Fee: 10 MUSD (10%)
You Receive: 90 MUSD

Fee Comparison

We only win when you win!

Advanced: Under the Hood

For developers and power users:

Contract Addresses (Mezo Testnet)

IndividualPool:  0xdfBEd2D3efBD2071fD407bF169b5e5533eA90393
YieldAggregator: 0x3D28A5eF59Cf3ab8E2E11c0A8031373D46370BE6
MezoIntegration: 0x043def502e4A1b867Fd58Df0Ead080B8062cE1c6
MUSD Token:      0x118917a40FAF1CD7a13dB0Ef56C86De7973Ac503

ABI & Integration

Want to integrate programmatically?

import { individualPoolABI } from '@khipu/web3';

const pool = new ethers.Contract(
  poolAddress,
  individualPoolABI,
  signer
);

// Deposit 100 MUSD
await pool.deposit(ethers.parseUnits('100', 18));

// Check balance
const balance = await pool.balanceOf(userAddress);

View Full ABI →

Events to Monitor

Subscribe to real-time updates:

pool.on('Deposited', (user, amount, timestamp) => {
  console.log(`${user} deposited ${amount} at ${timestamp}`);
});

pool.on('YieldClaimed', (user, amount, totalYields) => {
  console.log(`${user} claimed ${amount} yields`);
});

Common Questions

Is my principal guaranteed?

Your principal is as safe as the smart contracts. While we can't guarantee against smart contract bugs (hence audits), your funds are never at risk from market volatility since MUSD is a stablecoin pegged to USD.

What happens if Mezo goes down?

Your funds remain in the smart contracts. You can withdraw directly via blockchain (even if KhipuVault UI is down) using Etherscan-like tools.

Can KhipuVault access my funds?

No. The smart contracts enforce that only the pool owner (you) can withdraw. KhipuVault team has zero access to user funds.

How are yields so high compared to banks?

Banks lend at 5-8% but only pay you 0.5%. We pass through the full DeFi yields (minus 10% performance fee). DeFi is more efficient = higher yields.

Next Steps

Now that you understand the mechanics:

Still have questions? Check the FAQ or ask in Discord!