Architecture

Mint YToken through Vault

Users can mint YTokens in a single transaction by depositing the vault’s designated primary asset token.

Mint YToken through Manager

Our ERC-4626 vault utilizes a primary asset token, enabling users to mint YTokens directly in a single transaction. To enhance user experience and remove the requirement for users to manually swap their tokens into the designated asset token, we've introduced a Manager contract. This contract supports depositing a selection of whitelisted tokens, streamlining the minting process.

The Manager acts as the entry point for users wishing to mint YTokens with tokens other than the vault's primary asset token. Minting via the Manager follows a two-step procedure:

1. The user submits a mint request and receives a Receipt NFT as proof of their request

2. Subsequently, off-chain keeper bots monitor these Receipt NFTs and automatically process the minting requests and burns the receipt NFT.

Redeem YToken through Manager

When a user submits a redeem request through the Manager:

1. A Receipt NFT is minted as proof of the redeem request.

2. After the withdrawal cooldown period has elapsed, the keeper bot calls executeRedeem on the Manager.

3. The Manager then updates the assets in the YToken and transfers the selected asset back to the user.

Redeem YToken through Vault

• The Vault contract calls the Manager to mint a Receipt NFT to the user as proof of the redeem request.

• After the withdrawal cooldown period has passed, an keeper bot invokes executeRedeem on the Manager.

• The Manager then updates the asset balances in the YToken and transfers the selected asset back to the user.

Distribute Yield

1. The Rewarder distributes yield at 24-hour intervals.

2. The Rewarder calls the Yield contract, which in turn interacts with the YToken contract to distribute the yield to users.

3. To mitigate the impact of front-running, we’ve implemented a vesting mechanism that distributes the yield gradually over a 24-hour period.