Vaults Protocol

Protocol overview Structural synthetic Rewards component Rollup breakdown Program overview

Vaults Protocol, which rolls up fungible and non-fungible assets in a single staking smart contract, is made possible by a synthetic Algorand Standard Asset callled sHDL.

sHDL is a synthetic asset, backed 1 for 1 by actual HDL. sHDL is a representation of the total possible rewards in a staking program, which accounts for both fungible and non-fungible assets.

sHDL is distributed to program participants after passing minimum verification parameters. In the case of the inaugural Vaults launch, the minimum parameters for sHDL distribution are 2000 HDL tokens and 1 Platinum Astro (the Infinity Key).

For the inaugural Vaults program, the rewards breakdown is as follows: 100% reward for all HDL committed to the vault for 180 days. 5% reward for all Platinum Astros committed to the vault for 180 days. 3% reward for all Algo Astros committed to the vault for 180 days. 0.25% reward for all FORUM Astros committed to the vault for 180 days. The maximum possible reward for this staking period is 300% APR.

Collectively, this represents a staking program that can accommodate an infinite number of Algorand ASAs aggregated in a single contract. For the inaugural program, nearly 250 different ASAs are represented in one contract.

After receiving the sHDL, program participants have 24 hours to commit their synthetic HDL tokens to the vault contract, while keeping their actual assets safe in their wallets. The sHDL in the vault after 24 hours is then locked as the full and unchangeable program period rewards. HDL, precisely equal to the committed sHDL, is then loaded into the contract by the vesting organization. At this point, the clock has started, and in 180 days, all sHDL will be redeemable for HDL during the withdrawal process.