Vault Openning

What happens when a vault is opened?

Step 1 — Vault opens

• We fix that 1 index token = $1 NAV at the start.

• First depositor puts in $1,000 USDC.

• Vault buys 1,000$USDC worth of the index (say BONK, BERN, GP, ART, MF).

• In return, vault mints 1,000 index tokens, each worth $1.00.

Now:

• TVL = $1,000

• Supply = 1,000 tokens

• Price per token = $1,000 ÷ 1,000 = $1.00

Step 2 — Second deposit

• Another user deposits 500 $USDC.

• Vault buys 500 $USDC of assets.

• TVL = 1,500 $USDC

• Vault mints 500 new tokens (still at $1 each).

• New supply = 1,500 tokens.

Price per token = $1,500 ÷ 1,500 = $1.00 (unchanged).

Step 3 — Market moves

• Suppose one token in the index pumps, so vault’s assets are now worth $2,000.

• Supply = still 1,500 tokens.

• Price per token = $2,000 ÷ 1,500 = $1.33.

So every token now reflects the gain.

Simple rule:

• Deposits/withdrawals → don’t change price, only change supply.

• Market performance → changes vault TVL, which changes token price.