Vyper Protocol is deployed as a set of smart contracts on Solana.
At a high level it's composed of a key part called Vyper Core which manages the collateral deposit/withdraw as well as the position IOUs mint and burn.
During initialization of Vyper Core, other smart-contract plugins are also provided. These plugins manage the underlyings of the derivative (up to 10 different underlyings are supported as of now) and the specific payoff which determines the redemption value of the position IOUs.
Vyper Core is open-source which means anyone can build their own payoff and deploy it in just a few clicks.
In many use cases, the specific use cases requires a more sophisticated interaction mechanism between the end user and Vyper Core (e.g. the epoch system of Vyper Vaults). In those instances, application layers can be built on top of the Vyper Core infrastructure, catering to specific use cases.