General Case

1. Vault TVL (Total Value Locked)

   • The vault holds a basket of assets (for example: a Blue Chip strategy with $BONK - 22%, $JLP - 20%, $JUP - 20%, $JITO -20% and $PYTH - 18%)

   • The value of these assets is calculated in USD using oracle (Switchboard)

   • Example:

     • $2,200 of $BONK

     • $2,000 of $JLP

     • $2,000 of $JUP

     • $2,000 of $JITO

     • $1,800 of $PYTH

     • TVL = $10,000

2. Supply of dTokens

   • When users deposit, they mint new dTokens.

   • Total supply = all dTokens minted (minus those burned on withdrawal).

   • Example:

     • Vault started with 10,000 dTokens minted.

3. NAV (Net Asset Value) Formula (per dToken value)

{Token Price (NAV)} = {Vault TVL (USDC)} / {Total Supply of dTokens}

• Using the example:

  • TVL = 10,000 $USDC

  • Supply = 10,000 tokens

  • dToken price = 1.00 $USDC

1. When Deposits Happen

• User deposits 1,000 $USDC.

• Vault TVL = 11,000 $USDC.

• dToken supply increases by 1,000 new tokens at 1 $USDC each.

• Token price = still 1 $USDC (no dilution).

1. When Assets Move in Price

• Suppose BONK doubles in value.

• Vault TVL = 12,200 $USDC (up from 10,000 $USDC).

• Supply still = 10,000 tokens.

• New token price = 1.22 $USDC.

1. When Withdrawals Happen

• User burns 500 tokens (worth 650 $USDC at new price).

• Vault swaps assets back into USDC and sends them to the user.

• Supply drops by 500.

• Price per token stays unchanged (still 1.30 $USDC).