Vaults

Overview

Satay vaults are capital pools that securely store and maximize returns on digital assets. Vaults accept BaseCoin deposits, which are then utilized in strategies.

VaultCoin

A VaultCoin represents a user's share of a Vault's underlying assets. When a user deposits BaseCoin into a Vault, the Vault mints VaultCoin<BaseCoin> to the user.

Deposit Token Flow

The amount of VaultCoin<BaseCoin> minted is as follows:

$$VaultCoin\ amount=BaseCoin\ amount*\frac{VaultCoin\ supply}{vault\ BaseCoin\ assets}$$

VaultCoin<BaseCoin> can be traded as any other movement_framework::coin, and can be burned in exchange for a respective amount of BaseCoin.

Strategies

Strategies are Move modules that withdraw BaseCoin from vaults and deploy capital to Structured Products. In order for a strategy to withdraw from a vault, it must be approved by the vault's manager.

Conceptually, strategies are a bridge between BaseCoin held in vaults and structured products which deploy BaseCoin to third-party protocols in exchange for ProductCoin representations of positions.

Strategy Approval

A manager is able to approve any number of strategies for a vault. During the approval process, managers must indicate the debt_ratio for the strategy, which represents the proportion of a vault's holdings that the strategy can withdraw.

The manager account is the only account capable of approving strategies. At launch, the vault manager role will be limited to a multi-sig account operated by the Satay team. As the platform matures, vault management privileges will be transferred to the Satay DAO for decentralized strategy selection.

Debt Ratio

Each approved strategy has a debt_ratio attribute that limits the amount of debt the strategy can hold at any given time. The sum of all debt_ratio attributes for a vault cannot exceed 100%.

Fees

Vaults charge a performance fee and a management fee. The performance fee is applied to realized gains for a vault, and the management fee is charged annually on a vaults AUM. Fees are distributed to the dao_storage module.

Base Strategy

All strategies interact with vaults indirectly through the base_strategy module, which restricts vault interactions to harvest transactions, withdraw_for_user transactions, and tend transactions.