Vault Creation

Detailed description of Vault Creation, the Vault Stages, and Vault Settings.

Vault Creation

Vaults can be created by any user who (1) has connected their wallet to create a user ID on L4VA and (2) have the required amount of $VLRM to send to the Vault smart contract address; this person we call the Vault "Creator".

The 5 Vault Stages:

1. Set-up: The Creator configures the Vault with specific settings and sends the required $VLRM to the Vault contract address

2. Contribution Window: The Creator and/or other users with access to the vault (depending on Privacy Type) send assets to the Vault contract address.

3. Investment Window: Investors with access to the vault (depending on Privacy Type) send ADA to the Vault contract address. Vaults which successfully meet the valuation and/or reserve requirements and receive enough ADA (based on the settings of the Creator) will then lock and the LP reserve ADA and associated amount of Vault FT will be sent to our partner DEX to spin up an initial liquidity pool.

4. Locked: Once vaults are locked, they will remain locked until terminated. Termination will typically happen based on the decision of the DAO governance, unless the vault is programmed to terminate based on preset criteria. In order to terminate, all NFTs must be liquidated and all fungible tokens and/or ADA are distributed to wallets holding FTs representing that vault.

5. Terminated: Vaults which have been terminated and are only viewable for historical reference.

Vault Settings Options

The Creator configures the settings of the vault to customize the use case and user experience, across a variety of strategies.

Vault settings include:

1. Vault Name

2. Vault Type: One asset or multi-asset

3. Asset Type: NFT, FT, or both

4. Asset Class: Tags based on the type of asset

5. Whitelist / Blacklist assets: Customize assets by policy ID that are included or restricted from the vault

6. FT settings: Supply, decimals, thumbnail image

7. Fractional Tokens Offered: The % of fractional tokens offered for investment during the "Investment Window".

8. LP Reserve: The % of ADA received in the investment window that will automatically be contributed to a liquidity pool on our partner DEX upon vault lock.

9. Valuation Method

   1. Fixed Valuation: Sets valuation for the full vault and a specific amount of ADA required for the vault to lock.

   2. LBE: Floating valuation based on market demand, with a reserve % set as the minimum required for the vault to lock.

10. Privacy Type:

    1. Private: Only the Creator contributes assets

    2. Semi-Private: Only whitelisted wallets can contribute assets

    3. Public: Anyone can contribute assets