Vault Lifecycle

Deposit, Minting, Redemption, and Withdrawals

NODO Vaults are built for seamless user interaction and autonomous backend execution. The lifecycle covers deposit, NDLP minting, vault growth, and flexible withdrawals — all fully on-chain.

1. Deposit & Minting NDLP

When users deposit assets (e.g., USDC) into a vault:

• NDLP tokens are minted 1:1 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 reflects a user’s proportional share of the vault.

• Minted tokens are transferable.

2. Vault Growth & Yield Accrual

Vaults generate yield via trading fees and arbitrage captured by the AI agent:

• NDLP token balances stay fixed — value accrues via an increasing conversion rate.

• This creates auto-compounding yield with no manual claiming or reinvestment.

3. Withdrawal & Redemption

Users can redeem NDLP for USDC at any time:

• The system calculates the latest conversion rate, burns NDLP, and returns the corresponding amount of USDC.

• There are no withdrawal fees and no restrictions on exits.

• Performance fees apply only on realised gains above the High Water Mark (HWM).

4. Emergency Shutdown (If Triggered)

Vaults may enter emergency mode to safeguard funds:

• Deposits are paused.

• Withdrawals remain available via fallback processes governed by the protocol.