Token Framework

Vault Share Representation

Each NDLP token represents a proportional share of the vault’s total assets. As the vault accumulates profit through trading activity, arbitrage, and liquidity management, the value backing each NDLP increases. This results in a rising conversion rate over time. Holding NDLP entitles users to a claim on the vault’s underlying capital and performance.

Minting Mechanism

Upon deposit, assets like USDC are exchanged for NDLP based on the vault’s current Net Asset Value (NAV).

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

NDLP is minted and credited to the depositor’s wallet, increasing total supply. The vault simultaneously updates internal accounting to reflect the new capital and minted shares.

Transferability & Visibility

• Transfer Rules NDLP is transferable between wallets during the current deployment phase.

• Wallet Display NDLP tokens are fully supported by Sui-native wallets, with metadata displaying vault association, conversion rate, and claim eligibility. Phantom and other Sui-compatible wallets will show NDLP holdings once indexing is complete.

• Claim Certificate, Not Tradable Asset NDLP functions as a certificate of vault ownership, not a freely tradable asset. It does not accrue interest independently; its value is entirely derived from vault performance. NDLP is burned during redemption, and USDC is returned based on the latest conversion rate after the cooldown period.

Value Accrual & Redemption

• Tokenomics Linkage NDLP’s value appreciates as the vault captures returns. This increase is reflected through the conversion rate, avoiding token inflation and maintaining capital efficiency. NDLP does not change in quantity, only in underlying value.

• Redemption Process Holders may initiate a withdrawal at any time. Upon completion, NDLP is burned, and the user receives their entitled share of USDC. The total NDLP supply adjusts accordingly.