Mechanics
The life cycle of the earning vault is divided into several epochs. For every epoch, there is a yielding phase and an open phase. All funds are instantly withdraw-able during open phases.
Lifecycle of Earning Vault
How to launch Earning Vaults?
- 1.Each vault has an isolated margin account. Projects deposit funds into the margin account of the vault, the amount of which is determined by the size and the type of token of the vault.
- 2.Initiate vault by setting parameters including asset type, option strategy, strike price, expiry date and source of price oracle, Chainlink or DEX. Launch the earning vault from factory contract.
- 3.Users reserve the right to initiate claims against controversial vault quotes. If the claim is validated, that vault will be reset to the epoch-starting condition. For now, the Shield team will be responsible for scrutinizing the claims and making decisions. Soon, with an updated governance model, these decisions will be collectively made by Shield DAO.
- 4.Any third party can trigger the vault expiry, after which the vault will be settled automatically.
- 5.Projects have 48h to offer new quotes after previous round settles. If not, the vault smart contracts will be terminated.
- 6.All non-withdrawn funds will be automatically re-invested into next epoch of the vault with new quote offer.
Users can invest the vaults anytime, but the yields only start to accumulate until the next yielding phases.
Users can request to withdraw funds anytime, but funds are not available until that round of settlement. All funds are instantly withdraw-able during open phases. Requested withdrawals will not be re-invested into next epoch of yielding.
Last modified 8d ago