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Paimon Prime Vault

PP and NAV

PP (Paimon Prime) is the share token issued by Prime Vault, representing the holder's proportional claim on the Vault's net assets.

Naming convention used throughout this document

  • Contract name / source code: PPT (Paimon Prime Token) — see src/ppt/PPT.sol

  • On-chain ERC-20 name / symbol: PP Token / PP (this is what wallets display)

  • Standard: ERC-4626 vault, UUPS upgradeable

  • BSC mainnet address: 0x8505c32631034A7cE8800239c08547e0434EdaD9

Whenever this documentation says "PP", it refers to the same token your wallet shows as PP. The internal contract identifier PPT is used in audit reports and source code.

NAV Calculation Formula

NAVt=Vassets−VliabilitiesSeffective\mathrm{NAV}_t=\frac{V_{\text{assets}}-V_{\text{liabilities}}}{S_{\text{effective}}}

Where:

  • V_assets: Fair value of assets held by Prime (grossValue from disclosures/audits)

  • V_liabilities: Total redemption liabilities + withdrawable fees

  • S_effective: Effective supply = Total PP supply - Locked shares (shares pending settlement)

Deposit Constraints

Parameter
Value
Description

Minimum Deposit

10 tokens (MIN_DEPOSIT = 10e18)

Hard-coded in PPTTypes.sol to prevent dust deposits

Locked Mint Assets

Tracked per period via lockedMintAssets

Recently minted underlying may be temporarily ineligible for redemption coverage

Virtual Offset

1e18

Anti-inflation-attack offset applied in sharePrice() calculation

Key Principle

Short-term DEX pool prices shall not serve as direct inputs for NAV. NAV must primarily rely on audited/reconciled/valued sources, with market prices functioning solely as risk control signals (e.g., deviation triggers).

Tiered Liquidity Model

Prime categorizes assets into three liquidity tiers, defined on-chain by the LiquidityTier enum (PPTTypes.sol:37-41):

Tier
Enum
Liquidity Cycle
Purpose
Typical Assets

L1

TIER_1_CASH

Instant (T+0)

Emergency redemption coverage

USDT cash, instantly-liquid stable assets

L2

TIER_2_MMF

Short (~T+7)

Standard redemption coverage

Money market funds, short-term yield assets (e.g. CashPlus / CASH+)

L3

TIER_3_HYD

Quarterly+ (T+90 or longer)

Long-duration yield

Private equity, private credit, long-lockup RWA

About the name "HYD" in this Tier-3 enum

The enum value TIER_3_HYD stands for "High-Yield" — it is a category label for the long-duration tranche of the portfolio, not a token symbol. Do not confuse this with the synthetic-asset token of the same name described in some Phase-2 design documents; that token is not deployed.

Portfolio Allocation

The actual L1/L2/L3 target ratios are not hard-coded in the contracts. They are configured at runtime through the off-chain RebalanceStrategyService (single-active-strategy pattern) and pushed to AssetController as LayerConfig { targetRatio, minRatio, maxRatio } values.

The contract layer only enforces two safety thresholds (PPTTypes.sol:26-27):

Constant
Value
Purpose

LOW_LIQUIDITY_THRESHOLD

1500 bps (15 %)

Low-liquidity warning

CRITICAL_LIQUIDITY_THRESHOLD

1000 bps (10 %)

Critical-liquidity warning

Typical strategy targets (subject to governance / fund manager update):

L3: Long-Duration Yield Allocation

The Tier-3 sleeve typically holds 55-65 % of total assets and provides exposure to:

  • Real World Assets (RWA) with quarterly liquidity windows

  • Private equity / private credit

  • Tokenized fund interests

PP itself is not a stablecoin; its NAV fluctuates with underlying asset performance.

Operational Commitments

Commitment Items
Specific Requirements

NAV Disclosure Frequency

At least once per week

Redemption Window

Fixed quarterly window, announced 30 days in advance

Single Window Cap

Maximum redemption amount subject to liquidity budget constraints

Contingency Reserve

Special Disposal Fund to address liquidity events

ERC-4626 Compliance

Prime Vault implements the ERC-4626 tokenized vault standard, providing:

Standard Functions

Function
Description

deposit(assets, receiver)

Deposit assets and receive shares

withdraw(assets, receiver, owner)

Withdraw assets by burning shares

redeem(shares, receiver, owner)

Redeem shares for assets

convertToShares(assets)

Preview share amount for given assets

convertToAssets(shares)

Preview asset amount for given shares

Custom Extensions

Paimon extends ERC-4626 with:

  • Three redemption channels — STANDARD (T+7), EMERGENCY (T+0, fee-penalized), SCHEDULED (large-window, currently unused but reserved) — see RedemptionChannel enum in PPTTypes.sol:57-61

  • NAV-based pricing via sharePrice() with virtual-offset protection against inflation attacks

  • Budget-constrained withdrawals via emergencyQuota (refreshed by KEEPER) and standardQuotaRatio (default 70 % of available liquidity)

  • Direct redeem disabled — users must go through RedemptionManager so the approval / locking / settlement flow can run

  • Locked share accounting — totalLockedShares and lockedSharesOf[user] track shares pending redemption settlement; these are excluded from effectiveSupply() used in NAV math

Live Asset Adapters

Prime Vault holds underlying assets directly when they are simple ERC-20s, and uses adapters for assets with off-chain settlement flows:

Adapter
Underlying
Notes

CashPlusAdapter

External RWA money-market fund (CASH+ token, ~$107)

Subscription requires off-chain SPV approval; the operational backend probes claim() once per hour and auto-advances SUBSCRIPTION_LINKED → SPV_APPROVED → CONFIRMED

PaimonOracleAdapter

Multi-asset price oracle

Aggregates Chainlink + custodian NAV feeds with circuit-breaker checks

Adapter contract addresses are operational (not enumerated in published documentation) and managed under multisig + timelock; on-chain interactions remain publicly observable through PPT events.

See Redemption Mechanism for the full request → approval → settlement state machine.

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