Vault Mechanics

Each vault maintains a share price that increases as yield accrues:

sharePrice = totalAssets / totalShares

Why Share Tokens?

• Gas Efficiency: Only global sharePrice updates when yield arrives.

• Automatic Compounding: Yield accrues passively to all positions without manual claims.

• Fair Entry/Exit Pricing: Share price ensures proportional yield allocation.

• Standard DeFi Pattern: Share-based vaults (ERC-4626 standard) are battle-tested.

When users deposit, they receive shares based on the current price. When they withdraw, their shares are burned and they receive the underlying assets at the current share price. Stakers can deposit or withdraw anytime (subject to resolution lock periods during active votes).

Yields accumulate via:

• Variable commission from winning market payouts: staker commission (default 1%, governance-adjustable between 1-3%) + fixed 1% to development team + 0.15% creator quality bonus if unchallenged (total commission ranges from 2.15% to 4.15% depending on governance-set staker rate).

• Penalties slashed from dishonest or incorrect voters/proposers.

• Optional external incentives or integrations.