Structured Yield Vault Mechanism

1. Vault Creation

• Anyone (vault creator) can create a vault and set their own vault parameters permissionlessly

• The vault creator provides the necessary collateral to fund the vault.

• Once the vault is funded, it gets listed on Prodigy.Fi’s platform for discovery.

2. Vault Subscription

• Users looking to earn yields can browse through active vaults on Prodigy.Fi's marketplace and select one based on the assets they want to trade, their target buy or sell price and expiry date

• To subscribe, users deposit the selected crypto asset into the vault.

• Once subscribed, users lock in the fixed yield, regardless of whether the trade executes at expiry.

3. Earning Yields

• Vault subscribers earn a fixed yield that is set and paid by the Vault Creator.

• Yields are distributed upon expiry, regardless of the vault’s outcome.

4. (Optional) Liquidity Adjustment

• The Vault creator may withdraw any unused liquidity from the vault at any time. Doing so delists the vault from the Earn page and prevents new subscriptions.

• However, all existing vault subscriptions are honored and processed according to the vault's terms on the expiration date.

5. Expiration And Settlement

• When the vault expires, the smart contract retrieves the final market price of the crypto asset from our pricing oracle.

• Based on the Linked Price, the smart contract then determines whether a trade is executed or not.

• The expiry time for all vaults is fixed at 16:00 (UTC+8).

*We currently use Pyth Network & Chainlink oracles.

6. Fund Distribution

• Once the vaults have been settled, the smart contract distributes the settled funds to both the vault subscriber and the Vault creator, making them available for withdrawal on the “portfolio” page.

• Vault creators and vault subscribers can then withdraw their settled funds at 18:00 (UTC+8).

7. Withdrawal And Completion

• Once all funds have been withdrawn, the vault is considered "settled" for all participants.