# 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. {% hint style="info" %} **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. {% endhint %} ### NAV Calculation Formula $$ \mathrm{NAV}*t=\frac{V*{\text{assets}}-V\_{\text{liabilities}}}{S\_{\text{effective}}} $$ 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 | {% hint style="info" %} **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**. {% endhint %} ### 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): ``` ┌─────────────────────────────────────────┐ │ Prime Vault Portfolio │ ├─────────────────────────────────────────┤ │ L1 (TIER_1_CASH) ~5-15 % typical │ │ L2 (TIER_2_MMF) ~25-35 % typical │ │ L3 (TIER_3_HYD) ~55-65 % typical │ └─────────────────────────────────────────┘ ``` ## 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](/paimon.finance/architecture/redemption-mechanism.md) for the full request → approval → settlement state machine. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://paimon-finance.gitbook.io/paimon.finance/architecture/prime-vault.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.