Vault Creation

Each vault on ProdigyFi is a unique smart contract. The smart contract transparently and securely automates the actions required to operate the vault throughout its lifecycle, from managing deposits to checking the Pyth Network oracle price, and much more.

Any user (Vault Creators) can create a vault by setting the vault parameters such as asset pair, direction, linked price, yield, expiry, and quantity. The Vault Creator also provides the necessary liquidity to fund the vault. This action automatically generates a smart contract for the vault and lists it on the platform for discovery.

Smart Contract Terms: Investment Token and Linked Token

In our smart contract, we use the terms Investment Token and Linked Token to define the relationship between the paired tokens.

• Investment Token: This is the token that the Subscriber deposits into the vault.

• Linked Token: This is the token that the Vault Creator deposits into the vault.

Direction	Investment Token	Linked Token
Buy Low	USDC	WETH
Sell High	WETH	USDC

Swapped vs Unswapped

Swapped means that at vault expiry, the Linked Price was reached and the smart contract swapped the Subscribers' Investment Token for the Linked Token. In this scenario, Subscribers also received their rewards in the Linked Token. The Vault Creator received their deposited USDC plus the USDC from Subscribers.

Unswapped means that at vault expiry, the Linked Price was not reached thus a swap of tokens does not occur. In this scenario, the smart contract sends Subscribers their principal plus rewards in the Investment Token. The Vault Creator's Linked Token deposit is returned.

WETH-USDC Buy Low - Simplified Example

Vault Creator will create a vault and provide both Linked Tokens (WETH) and rewards (USDC). Subscribers will deposit Investment Token (USDC) into the vault.

Swapped

If the Linked Price of the vault is reached, Subscribers’ deposits in the Investment Token (USDC) are swapped for the Vault Creator's Linked Token (WETH), which includes the reward in WETH.

Unswapped

If the Linked Price is not reached, Subscribers get their Investment Token (USDC) returned, and the Vault Creator pays the reward in USDC.