🐳Vault

A Vault is a smart contract initiated by a curator to:

• Raise Funds: Gather funds from external liquidity providers for larger-scale strategic order placement.

• Share Profits: Distribute income (transaction fees, incentives, and spread earnings) proportionally among liquidity providers.

Key characteristics and functionalities:

• Multi-Pool Connectivity: A single Vault can be connected to multiple Pools, provided they use the same debt token.

  • Example: A Vault using USDC as the debt token could connect to Pools in both the PT-sUSDe-27Dec2024/USDC and wETH/USDC Markets.

• Range Order Configuration and Order Placement: The curator configures Range Orders within each connected Market and places orders using deposited collateral or debt tokens sourced from the Liquidity Providers.

• Liquidity Provision and Profit Sharing:

  • Liquidity providers deposit assets into the Vault.

  • Upon the redemption, liquidity providers receive a share of the profits proportional to their deposit.

• ERC-4626 Standard: The Vault contract uses the ERC-4626 standard for profit sharing, ensuring a standardized and secure mechanism for distributing earnings.

• Range Order Compatibility: Vaults can be associated only with:

  • Lending Range Orders

  • Two-Way Range Orders

• Incompatibility: Vaults cannot be associated with Borrowing Range Orders. Market Makers can place Borrowing Range Orders with contract.

Vault Parameters:

• Associated Pools: Specifies the Pools connected to the Vault.

• Associated Markets: Each Vault will have a maximum tenor of the associated markets.