Hedera DeFi Gets Automated Yield as Bonzo Vaults Enter Beta

• Bonzo Vaults offers automated yield strategies via EVM smart contracts that rebalance and auto-compound on the Hedera network.
• $HBAR, HBARX, $USDC, BONZO, SAUCE, DOVU, PACK, and JAM are supported, and wETH/wBTC (ERC-20) is scheduled for support.

Bonzo Finance Labs has introduced Bonzo Vaults, a beta product that automates yield strategies for Hedera decentralized finance (DeFi). The product relies on smart contracts based on the Ethereum Virtual Machine and deployed on Hedera. It executes deposits and strategy logic onchain.

Each vault accepts a single asset or an asset pair and mints a vault share token that tracks a user’s portion of the pooled position. Strategy contracts deploy those pooled assets into venues such as concentrated-liquidity pools and lending markets, while the vault manages deposit and withdrawal accounting.

Bonzo Vaults (beta) is now live

Enjoy automated yield strategies across @Hedera DeFi. Deposit supported asset(s) into any vault — it handles strategy execution, rebalancing, and yield compounding, on your behalf.

Explore Vaults pic.twitter.com/otu61A8J2z

— Bonzo Finance Labs (@bonzo_finance) January 27, 2026

The design is modular, enabling strategy upgrades or deprecations without changing the vault interface. Bonzo also characterizes Vaults as permissionless for EVM developers, with a strategist fee tied to yield earned by a strategy contract.

Moreover, the initial strategies draw on open-source approaches associated with Beefy Finance and ICHI, and the ranges, rebalancing, and reward harvesting are automated to compound returns.

How Hedera’s Initial Bonzo Strategies are Structured

Bonzo Vaults launches with three strategy families. Single Asset DEX vaults take one token, swap part of the deposit into the paired asset, and then manage concentrated-liquidity positions, including range selection, periodic rebalancing, and fee compounding. Dual Asset DEX vaults manage two-token positions and rebuild ranges around prevailing prices to keep liquidity deployed and collect fees.

Source: Bonzo Finance Labs on X

In Bonzo’s documentation, deployed Dual Asset DEX vaults include $USDC–$HBAR, $USDC-SAUCE, BONZO-XBONZO, and SAUCE-XSAUCE. Additionally, the press release lists additional pairs such as WETH-$HBAR, WETH-$USDC, WBTC-$HBAR, and WBTC-$USDC as coming soon.

A separate contracts index lists Single Asset DEX vaults and pairings that reference tokens, including $HBAR, $USDC, SAUCE, BONZO, DOVU, and JAM, alongside a leveraged liquid staking token (LST) vault for HBARX.

For leveraged positioning, the Leveraged LST strategy supplies an LST as collateral to Bonzo’s lending market, borrows the underlying base asset, and cycles funds back into staking and lending to build LST exposure. Bonzo Finance Labs noted that the HBARX leveraged vault was under maintenance at launch, with deposits disabled.

For single-asset deposits, the token is automatically converted into the paired pool asset at deposit. It also states withdrawals return a mix of both tokens, with the expected ratio shown in the vault interface.

Bonzo’s release materials include risk disclosures that cover smart-contract vulnerabilities, market volatility, and reliance on underlying protocols used by each strategy. Also, vault strategies are being audited by Halborn, with audit reports planned for publication.

Bonzo Vaults’ beta rollout adds a liquidity automation option for Hedera DeFi users by running rebalancing and compounding routines via onchain contracts.

Meanwhile, Hedera has continued expanding its U.S.-focused partnerships. Recently, CNF reported that the network joined America250 to support digital experiences and community engagement for the United States’ 250th anniversary commemoration.

At the time of writing, $HBAR was trading at $0.1044, down 2.67% over the past 24 hours. The altcoin’s market cap stood at $4.49 billion, while 24-hour trading volume was about $141 million, up 20% in 24 hours.