The flow of funds
Strategy creation
Before any deposits are accepted, Keyrock - Byzantine’s regulated strategy manager - programs the investment strategy directly into the Byzantine Prime smart contract. This strategy defines exactly which lending markets capital can flow into, the maximum loan-to-value ratios allowed, the types of collateral accepted, and how to rebalance. Once written, these rules cannot be changed unilaterally by anyone.
Deposit
You transfer funds to your unique account. If depositing in fiat (EUR or USD), a regulated on-ramp partner converts them into stablecoins (EURC or USDC - digital euros and dollars backed 1:1 by real reserves). If depositing in stablecoins directly, they flow in immediately.
Automatic deployment
As part of the same deposit transaction, your assets flow directly into the underlying lending markets (Morpho, Aave, Maker/Sky) according to Keyrock’s strategy. The Byzantine Prime smart contract does not hold your assets - it routes them automatically, acting as an automated fund registrar rather than a custodian.
Receipt tokens issued
The smart contract issues you receipt tokens representing your share of the pool - similar to fund units. These tokens are held in your own wallet and are the cryptographic proof of your ownership. The contract’s security audits exist primarily to guarantee the accuracy of this accounting.
Borrowers take loans
Immediately after deployment, your assets become available for borrowing on the lending markets. Borrowers - typically market makers, arbitrage traders, and institutional funds - post digital asset collateral worth 120–150% of the amount they wish to borrow, then draw on the available liquidity. For more on who borrows and why, see Digital credit & overcollateralisation.
Interest accrues in real time
As borrowers take loans, they pay interest continuously. Interest rates are set algorithmically by each market based on supply and demand - when more of the pool is borrowed, rates rise; when borrowing is lower, rates fall. This interest flows directly to depositors and is credited to your account in real time, every few seconds.
Withdrawal
You can withdraw at any time. The smart contract unwinds your share from the lending markets and returns the stablecoins to your wallet, all within under a minute under normal conditions. Your original deposit plus all accrued interest is available immediately, with no lock-ups or redemption windows.
Who controls what
Byzantine Prime is structured so that no single party - not Byzantine, not Keyrock, not any borrower - has unilateral access to your funds.You (the investor)
Role: Provide capital and withdraw on demandControl: Can deposit and withdraw your own funds at any timeSafeguard: No access to other investors’ positions; funds held in your own wallet
Byzantine Prime protocol
Role: Executes the strategy automaticallyControl: Cannot move funds outside the pre-approved lending venuesSafeguard: Rules are immutable once deployed - not even Byzantine can change them
Keyrock (strategy manager)
Role: Sets and maintains the investment strategyControl: No direct access to investor funds; can only adjust strategy parameters within mandateSafeguard: Protocol logic prevents any action outside the permitted universe of markets
Underlying lending markets
Role: Match borrowers with lenders; manage collateral and liquidationsControl: No direct access to investor fundsSafeguard: Collateralisation enforced by their own protocol logic, independently of Byzantine
How assets are segregated
Your assets are never pooled with non-verified depositors. The receipt tokens representing your position are held exclusively in your own wallet - either a self-custodial wallet you connected, or the wallet Byzantine created for you during onboarding. At no point are funds held on a corporate balance sheet or exposed to any party’s operational discretion. All balances, positions, and interest flows are publicly auditable on the blockchain at any time, giving you the equivalent of real-time proof of reserves. You can verify your balance directly through the Byzantine dashboard or via the API.What can move your assets
Funds can only move in three ways, all governed by pre-defined, immutable smart-contract logic:- Your deposit or withdrawal - initiated by you, authorised by your passkey signature
- Automated interest distribution - credited directly to your position by the smart contract
- Strategy rebalancing - Keyrock shifting capital between pre-approved lending markets, within the strict parameters of their mandate