Overview
Self-repayment provides a way for active participants to improve their loan health passively. By routing earned rewards directly into repayment, borrowers maintain lower utilization, reduced liquidation risk, and a smoother compounding experience.
Once enabled, all veDUST enrolled in self-repayment will automatically send their rewards to the user’s vault until the feature is turned off.
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### How It Works
1. **Enable Self-Repay**\ 
The user enables self-repayment for their veDUST.\ The system deploys a **UserVault** to that wallet (one vault per user).
2. **Reward Redirection**\ Rewards generated from the veDUST enabled for the self-repay system are sent to the user’s vault instead of their wallet.\ Each veDUST can independently opt in or out of self-repayment.
3. **Automated Execution**
A protocol executor once per epoch:
Claims rewards to the vault
Swaps reward tokens into the chosen debt asset
Repays the user’s loan on their behalf
4. **Disable at Any Time**
Disabling self-repay restores the default reward flow directly to the wallet.
All future rewards bypass the vault until the feature is re-enabled.
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### System Architecture
| Component | Description |
|---|---|
| RevenueReward | Routes veDUST rewards to either the owner or their assigned vault. |
| UserVaultFactory | Deploys one vault per user when first enabling self-repay. |
| UserVault | Holds rewards, performs swaps, and repays debt positions. |
| UserVaultRegistry | Controls aggregator whitelists, slippage limits, and executor permissions. |
Security and Safeguards
**Non-custodial:** Users remain owners of both the veDUST and the vault.\ **Slippage protected:** Swaps use Neverland oracle pricing to verify fair execution.\ **Whitelisted aggregators:** Only approved DEX aggregators are permitted.\ **Auto cleanup:** Self-repay is automatically disabled if the veDUST is transferred or merged.\ **Split inheritance:** If a veDUST is split, both resulting tokens retain self-repay status.\ **Recovery functions:** Users can recover ERC20 or MON from their vault at any time.
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### Behavior Summary
| Action | Result |
|---|---|
| Enable self-repay | Rewards are redirected to the user’s vault |
| Disable self-repay | Rewards flow directly to the wallet |
| Transfer veDUST | Self-repay is disabled automatically |
| Split veDUST | Both new tokens inherit self-repay |
| Merge veDUST's | Self-repay is cleared for the merged token |
| Executor operation | Claims rewards, swaps them, and repays debt |
| Manual claim (disabled) | Rewards can still be claimed manually |
Operational Flow
Key Properties
1. **One vault per user** – All enrolled veDUST share the same UserVault.
2. **Non-custodial design** – Ownership of rewards and loans never leaves the user.
3. **Automatic cleanup** – Self-repay is cleared on transfers or merges.
4. **Inherited splits** – New tokens after a split maintain self-repay status.
5. **Verified swaps** – All swaps are validated against oracle prices with capped slippage.
6. **Controlled access** – Only the authorized executor can trigger automation.
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### Why It Matters
The Self-Repayment System connects governance rewards and lending behavior into a single automated cycle. It rewards users who actively participate in governance with real financial benefits, while reducing overall protocol risk by improving borrower health.
Self-repay creates a continuous, closed loop:\ Governance rewards are earned by veDUST lockers.\ Those rewards automatically flow into the user’s vault.\ The vault repays debt, improving loan metrics and freeing borrowing capacity.
The result is a sustainable, incentive-aligned mechanism where governance participation strengthens both the individual and the protocol.