How it works
The vault is an ERC-4626 contract. Deposits mint shares, redemptions burn them, and the share price tracks the value of everything the vault holds.
The loop
- 1 — Deposit. You send USDG and receive vault shares. The share price at that moment sets your cost basis.
- 2 — Deploy. In the same transaction: the stablecoin portion is supplied to a lending market and the equity portion is bought into the basket. Your deposit is working before the call returns.
- 3 — Maintain. As prices move, the split drifts. The keeper trades it back toward target and compounds accrued interest.
- 4 — Exit. Burn shares, receive your pro-rata slice — either sold back to stablecoin or handed over in-kind.
What you actually hold
You hold shares, not a fixed claim on a number of dollars. A share is a proportional claim on the whole vault: the lent stablecoin, the accrued interest and the basket. Shares are transferable like any other token.