> For the complete documentation index, see [llms.txt](https://docs.yodl.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yodl.fi/capital-access-and-protection/dual-delegation.md).

# Dual Delegation

<figure><img src="https://3961588887-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLDmVFKMErtLItwvIaFc7%2Fuploads%2F3SETBLE3GZRJS8BSORC3%2FNew%20Dual%20Delegation.drawio%20(1).svg?alt=media&amp;token=8e142bce-e74b-4d90-a15d-887a3ce15b9d" alt=""><figcaption></figcaption></figure>

YODL’s dual-delegation architecture cleanly separates execution liquidity from delegated $YODL (protocol-held collateral).\
Restaked vaults supply the capital Operators deploy in strategies, while delegated $YODL assigned to Operators determines their execution-credit capacity and serves as part of the protocol’s bounded deficit-restoration buffer.

#### 1. Asset Delegation (Restaked Vaults)

Restaked vaults contribute single-asset capital (e.g., ETH, WBTC, USDC) as execution liquidity, which Operators use to fill trades under protocol-governed constraints.

Execution liquidity is mobilized in two modes:

* Pre-Slashing Mode — Vaults are pre-slashed to make inventory instantly available for low-latency venues such as 1inch.
* Instant Slashing Mode — Vaults are slashed and trades are settled atomically within the same transaction whenever an opportunity is executed.

All vault capital remains non-custodial, revocable, and fully governed by protocol-level safeguards.

#### 2. Delegated $YODL (Restoration Stake & Credit Sizing)

Participants may delegate $YODL to an Operator. The delegated amount helps determine how much vault liquidity the Operator can access safely. A[ Stability Fee](/capital-access-and-protection/stability-fee.md), applied each epoch on the delegated amount, strengthens system solvency and provides continuous protection against unrealized or residual deficits. &#x20;