NDLP Token Design

1. Purpose & Minting Logic

Purpose

NDLP (NODO Liquidity Provider) is a non-inflationary, interest-bearing token that represents a user’s proportional stake in a NODO Vault. It enables seamless tracking of a user’s deposited USDC and rewards performance through its appreciating conversion rate.

Relationship to Vault Share

Each NDLP token corresponds to a share of the vault’s total credited USDC. As the vault earns profits, the total value backing NDLP increases, thereby increasing the conversion rate. Ownership of NDLP grants entitlement to a proportional share of profits.

1:1 Minting Logic

On deposit, USDC is exchanged for NDLP using the current vault conversion rate:

• Example: If 1 NDLP = 1.05 USDC and a user deposits 210 USDC → they receive 200 NDLP.

NDLP is minted to the user and added to the total supply, and the vault records the credited amount and adjusts the total accordingly.

2.Transferability & Visibility

Transfer Mechanics (Allowed vs Restricted)

NDLP tokens are transferable between wallets, allowing users to move their vault shares across accounts or to others. This supports composability with other DeFi protocols, enables integration with secondary marketplaces (if developed), and improves UX for wallet migrations or social trading.While tokens are technically transferable, the UI does not treat them like general-purpose assets:

• NDLP balance is not displayed in the wallet's token list by default.

• It is instead shown within the vault interface (deposit/withdraw section).

• NDLP transfers are tracked by the vault smart contract to ensure accurate accounting and eligibility for withdrawals and cooldowns.

The vault system maintains full traceability of ownership history and uses token balances (including locked/unlocked state) to calculate redemption values.

Wallet Support (Visibility in Sui/Phantom)

NDLP tokens are fully visible in Sui-native wallets. Metadata may include conversion rate, vault association, and claim eligibility. Phantom and other Sui-compatible wallets display NDLP under asset holdings once properly indexed.

NDLP as a Claim Certificate vs Tradable Asset

NDLP acts as a certificate of claim rather than a tradable, liquid token. It is non-interest-bearing in isolation; its value comes entirely from vault performance. Once burned, the user receives USDC based on the current conversion rate after the cooldown.

3.Tokenomics Linkage

Value Accrual

NDLP’s value increases as the vault generates profit. Unlike traditional yield-bearing tokens, the appreciation is reflected in the conversion rate, not the token balance. This avoids token inflation while maintaining capital efficiency.

Redemption Rights

NDLP holders have full rights to redeem their tokens for USDC. Redemption initiates a 24-hour cooldown, after which the user may claim their funds. Redemption burns NDLP and reduces the total supply accordingly.