Deposits
When a user allocates funds to a vault, they are issued vault shares corresponding to the increase in Net Asset Value that they contribute to the vault. The following sequence of actions takes place:
- 1.User initiates a deposit. This is expressed in USDC
- 2.The vault calculates the Net Asset Value:
NAV = SUM(asset_i * price_i) - 3.Your vault share % is calculated:
Share = Deposit/(Deposit+NAV) - 4.New vault shares are issued to the depositor s.t.:
so that the amount of newly issued shares:
As a depositor, I get the amount of vault shares corresponding to the USDC value of my deposit, relative to dollar amount of vault Net Asset Value
Example:
- 1.Bob wants to deposit 100 USDC into a vault of their choice
- 2.The vault currently has a Net Asset value of 1000 USDC
- 3.Bob’s share would be:
Share = 100/(100+1000) = 0,0909 or 9,09% - 4.Suppose that the vault had 500 shares outstanding. This would mean that:
NewlyIssued = 0,0909*500/(1-0,0909) = 49,99 which is the number of new vault shares issued to Bob
Last modified 1mo ago