Why Fleets?

Real-world yield, uncorrelated to crypto — how Fleets connects DeFi capital to income-producing transportation assets.

A Different Kind of Yield

Most DeFi yields are circular. They come from trading fees, token emissions, or leverage between crypto assets — all of which move with crypto markets. When markets fall, yields compress or vanish entirely.

Fleets generates yield from a completely different source: the fixed monthly repayments made by African fleet operators on their vehicle loans. These repayments are driven by daily transportation demand — commuters taking buses to work, goods moving between cities, employers shuttling their staff. None of that stops because Bitcoin dropped 30%.

This structural independence from crypto market cycles is the core thesis behind Fleets.

What Fleets Does

Fleets is a structured credit protocol on Solana. It raises USDC from DeFi depositors, converts it to treasury-backed yield-bearing tokens that earn ~3–5% APY passively, and deploys 80% of that capital as vehicle acquisition loans to vetted African corporate fleet operators at a competitive APR.

The protocol is designed so that no capital sits idle. The 20% held back as a liquidity buffer earns yield continuously. The 80% deployed to loans earns loan interest on top of that.

The Two Sides of the Protocol

For Fleet Operators

Access credit facilities secured by vehicle liens. Repay over 12–36 months on amortising schedules aligned to fleet cashflows. No collateral beyond the vehicles.

For Depositors

Earn real-economy yield from loan repayments and reserve passive accrual. Choose between a senior fixed-yield tranche (FYC) or a higher-yield, first-loss junior tranche (FFC).

Why the Yield Is Real

Every dollar of loan income recognised by the protocol corresponds to a repayment that has landed back in the pool. The protocol uses cash-basis recognition — income is booked only when USDC is received in the pool, not when it is due and not when the SPV acknowledges it.

The baseline yield adds a second layer: even if no loans were active, depositors would still earn ~3–5% APY from the continuous price appreciation. Loan income sits on top of that baseline.

Why the Risk Is Managed

Fleets uses a structured two-tranche model to allocate risk transparently:

• FYC (senior) — receives yield first, up to a capped rate. Last to absorb any credit losses.
• FFC (junior) — absorbs first-loss risk in exchange for the residual (uncapped) yield above the FYC cap.

The protocol enforces a hard coverage constraint: the junior tranche must always cover at least 80% of the outstanding loan book. This means the senior tranche cannot be threatened unless losses exceed the junior buffer. New loans are blocked from originating if this ratio would be breached.

Additionally, all active loans are secured by vehicle liens enforced by the SPV. Defaulting operators face asset seizure and liquidation within a defined recovery window.

Why Solana

Fleets is built on Solana because its sub-second finality and sub-cent transaction fees make it practical to run monthly repayment routing, yield epoch distributions, and real-time tranche price updates — without the gas costs that would erode yields on Ethereum-based protocols.

All protocol state — pool accounting, tranche values, loan balances, redemption queues — is stored transparently on-chain in program-derived accounts (PDAs), auditable by anyone at any time.

Fleets is currently in private beta. Protocol parameters, APY ranges, and tranche structures described in this documentation reflect the design specification and are subject to adjustment before public launch.