Balanced strategy: routing across Core and Middle

Default 50/40/10 weights across Core, Middle, and Infra vaults — Balanced MCP live with two deposit legs.

Last updated: May 28, 2026 · Published 2026-05-28

Balanced is a strategy, not a vault. It describes default weights across Forge's three vault buckets: 50% Core, 40% Middle, 10% Infra. Each bucket is a separate `ForgeVault` with its own share token and adapter book. MCP Phase 2 will return multi-vault calldata; today agents perform two deposits for Balanced routing while Infra is planned. Read product canon in Docs and the Conservative counterpart for single-vault routing.

Default weights and Infra redirect

The Infra vault (Virtuals, Venice, counsel-gated venues) does not exist on-chain yet. Product canon redirects the 10% Infra weight to Middle, yielding an effective 50% Core / 50% Middle split until Infra launches.

Vault addresses and share tokens

Example: $1,000 USDC deposit

1. $500 → Core vault `deposit(500e6, receiver)` — 50% weight.
2. $500 → Middle vault `deposit(500e6, receiver)` — 40% + 10% Infra redirect.
3. Approve USDC (`0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913`) for each vault address (or use `permit` twice).
4. Use ~4M gas on Core first deposit post P2-C0; ~6M gas on Middle first deposit when four adapters are active.
5. Verify Middle `adapterCount` > 0 after timelock before expecting yield routing.

Middle adapter book (live)

These legs introduce ETH beta, perp LP exposure, and Morpho-curated lending — materially different risk from Core stablecoin yield. Withdraw order: wstETH → cbETH → avUSDC → Moonwell. No implied Coinbase partnership for cbETH allocation.

Core vs Middle — risk comparison

Yield and APY honesty

Balanced combines variable USDC lending rates on Core with LST exchange-rate accrual and non-standard avUSDC mechanics on Middle. There is no single headline APY. Do not add Core and Middle observations into one marketing number. FORGE rewards, if any, are Merkle-claimed separately — see FORGE emissions vs vault yield and Tokenomics.

MCP and agent workflow

MCP `deposit(balanced)` returns two legs — Core + Middle calldata (50/50 effective). Agents sign two approve + deposit transactions from the user EOA. Multi-vault withdraw/balance remains Phase 2b. Read MCP-native treasury. Legacy `aggressive` profile returns `STRATEGY_NOT_LIVE`.

Middle adapter deep dive

wstETH (Lido) and cbETH (Coinbase liquid staking) adapters swap USDC into LST exposure via on-chain DEX routes — introducing ETH price beta and slippage. Avantis avUSDC exposes perp-market LP mechanics unlike standard lending. Moonwell (moonwell.fi) provides Morpho-curated USDC lending with a smaller book than Core Prime. Each leg earns differently: LST via exchange-rate accrual, avUSDC via trader PnL dynamics, Moonwell via floating supply rates.

• Middle share token: fmUSDC — separate from Core fUSDC.
• 9000 bps active + 1000 bps Pendle reserve (inactive until Base market).
• Withdraw order: wstETH → cbETH → avUSDC → Moonwell — affects exit latency.
• No Spark, Aave, or Morpho Prime in Middle — those are Core-only.

Rebalancing and drift from target weights

Balanced strategy specifies deposit-time splits, not continuous on-chain rebalancing across vaults. If Core share price outperforms Middle over a month, the portfolio drifts from 50/50 toward Core-heavy — agents seeking strict weights must periodically deposit or withdraw to re-center. Forge does not auto-rebalance across vaults in MVP. Future MCP tools may suggest rebalance calldata; today that logic is agent-side policy.

When not to use Balanced

• Agents requiring stablecoin-only exposure → Conservative (Core only).
• Without reading Middle-specific risks: LST slippage, Avantis trader PnL, Moonwell curator risk.
• When combined APY marketing would violate R4 compliance — keep streams separate.

Portfolio reporting for Balanced holders should show two share balances, two NAV time series, and optional FORGE claim history — never a single "Balanced APY." Dashboards that aggregate without labeling legs mislead users and violate R4 marketing guidance. Link Stats for per-vault metrics.

Aggressive strategy preview (planned)

Balanced is the MVP cross-vault strategy; Aggressive (~30% Core / ~50% Middle / ~20% Infra) awaits Infra vault deployment and counsel gate on Virtuals/Venice adapters. Agents should not implement Aggressive routing until Infra `ForgeVault` exists and MCP returns three-vault calldata. Until then, Balanced with Infra→Middle redirect is the maximum cross-vault exposure documented for production integration.

Middle legs introduce materially higher risk than Core alone — LST swaps, avUSDC perp exposure, Moonwell curator risk. Balanced is not "Conservative plus a little extra"; it is a distinct risk book requiring separate user disclosures. Read Risks & Disclosures, MCP-native treasury, and FORGE emissions before onboarding end users.

Appendix: Balanced portfolio worked example

Consider an agent treasury with 10,000 USDC on Base implementing Balanced strategy. Split: 5,000 USDC to Core (`0x2C9a3922…193B`) and 5,000 USDC to Middle (`0x0cAB4665…36C5D`). Approve USDC twice — allowances do not share across vault addresses. Broadcast Core deposit first if your policy prioritizes stable yield leg; order does not affect final holdings. Track fUSDC and fmUSDC balances separately in portfolio accounting — they are not fungible.

After one month, Core share price may rise 0.3% from USDC adapter yield while Middle share price moves 0.8% from LST exchange-rate change — or negative if ETH falls. Portfolio drift away from 50/50 is expected. Rebalancing requires new deposits or partial withdraws; Forge does not auto-rebalance cross-vault in MVP. Report performance as two line items plus optional FORGE claims per FORGE emissions guide. Gas budget: reserve ~10M total for first-time two-vault onboarding on Middle + post-P2-C0 Core.

Frequently asked questions

Is there a Balanced vault contract?

No. Balanced is a strategy label describing deposit splits across Core and Middle (plus future Infra). You hold fUSDC and fmUSDC separately — there is no single "Balanced share token."

Why redirect Infra weight to Middle?

Infra vault (Virtuals, Venice) requires counsel gate and is not deployed. Rather than leave 10% idle, canon redirects to Middle so agents still deploy capital while waiting for Infra launch. When Infra goes live, MCP weights will update to three vault destinations.

Can I Balanced-deposit with MCP?

Yes — `deposit(balanced)` returns Core + Middle calldata legs. You still sign two on-chain transactions. Verify Middle routing on Stats and disclose per-leg risks. This article status is live for Balanced routing.

How should agents quote Balanced APY?

Do not quote a single combined APY. Report Core USDC yield proxy and Middle legs separately — LST accrual is not USDC APY. FORGE emissions are a third separate stream per FORGE emissions vs vault yield.

Summary for agents

Balanced strategy targets 50% Core / 40% Middle / 10% Infra — with Infra redirecting to Middle until Infra vault launches (effective 50/50 Core + Middle). Two separate deposits, two share tokens (fUSDC, fmUSDC). MCP Balanced live — confirm `adapterCount` on Stats. No single headline APY; ETH beta and avUSDC on Middle. Gas ~4M + ~6M first deposits. MCP guide, FORGE emissions, Risks. Externally reviewed.