Waterfall Governance aims to Bring True Risk Tranching To Decentralised Finance. Each portfolio aggregates a curated list of yield farming strategies in DeFi. Such as a portfolio aggregating - lending vaults, AMMs, or a combination of both.

Each portfolio is then "sliced" into different tranches, where the principal and the yield are re-distributed based on the tranch seniority. Users can choose which tranch to deposit funds based on their expected return and risk appetite.

Each tranche offers a different risk-adjusted yield. The cash flows from the portfolio is paid in a sequential or waterfall-like manner where the senior tranche is paid first, and the junior tranche is paid the last. The higher tranches pay fixed yield and have low risk, while the lower tranches have higher dynamic yield but also higher risk.

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