General Case
Vault TVL (Total Value Locked)
The vault holds a basket of assets (e.g. : Blue Chip index 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:
$2200 of $BONK
$2000 of $JLP
$2000 of $JUP
$2000 of $JITO
$1800 of PYTH
TVL = $10,000
Supply of Index Tokens
When users deposit, they mint new Index Tokens.
Total supply = all Index Tokens minted (minus those burned on withdrawal).
Example:
Vault started with 10,000 Index Tokens minted.
NAV (Net Asset Value) Formula (per Index Token value)
{Token Price (NAV)} = {Vault TVL (USDC)} / {Total Supply of Index Tokens}Using the example:
TVL = 10,000 $USDC
Supply = 10,000 tokens
Index Token price = 1.00 $USDC
When Deposits Happen
User deposits 1,000 $USDC.
Vault TVL = 11,000 $USDC.
Index Token supply increases by 1,000 new tokens at 1 $USDC each.
Token price = still 1 $USDC (no dilution).
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 = 1.30 $USDC.
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).
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