Skip to content

Vault-K-NO

Protocol Specification v1.2 · March 2026

Vault-K-NO is a structured yield protocol built on prediction markets. Investors deposit USDC once and earn continuous yield derived from binary prediction market NO share positions. The vault holds up to four simultaneous positions across different markets, rolling capital from settled positions into new ones — continuously, without maturity.

  • Deposit once, earn continuously

    No vault maturity. Capital automatically rolls from one market cycle to the next. Investors interact with a single contract.

  • Quadratic redemption curve

    Exit price is a quadratic function of daily redemption fill, fairly distributing liquidity between early and late redeemers each day.

  • ERC-7540 aligned

    Structurally compatible with the Asynchronous Tokenized Vault Standard. FIFO withdrawal queue, keeper-processed, with full audit trail.

  • USDC native

    All deposits, redemptions, and fees denominated in USDC. No protocol token.

Quick Reference

Parameter Value Description
Asset USDC Deposit and redemption currency
Max positions 4 Simultaneous active market slots
Daily cap 2% of TVL Max redeemable per day window
Liquidity fee 0.5% Flat fee on every redemption → HouseBuffer
Reserve target 15% of TVL Idle USDC maintained at all times
Rebase cooldown 7 days Minimum between rebases on same position
Pause threshold 15% gap Aggregate gap that halts withdrawals

Three-Contract Architecture

┌─────────────────────────────────────────────────────┐
│                  LiquidityVault                      │
│  ┌──────────────┐  ┌──────────┐  ┌───────────────┐  │
│  │ Position[0]  │  │ Pricing  │  │ Redemption    │  │
│  │ Position[1]  │  │ Engine   │  │ Curve + Queue │  │
│  │ Position[2]  │  └──────────┘  └───────────────┘  │
│  │ Position[3]  │                                   │
│  └──────┬───────┘                                   │
└─────────│───────────────────────────────────────────┘
          │ adapter.buyNoShares / claimSettlement
    ┌─────▼──────┐  ┌────────────┐  ┌────────────┐  ┌────────────┐
    │  Market    │  │  Market    │  │  Market    │  │  Market    │
    │  Adapter 0 │  │  Adapter 1 │  │  Adapter 2 │  │  Adapter 3 │
    └────────────┘  └────────────┘  └────────────┘  └────────────┘

┌──────────────────────────────────┐
│          HouseBuffer             │
│  Collects fees · Provides float  │
└──────────────────────────────────┘
Section What you'll find
System Overview Architecture, lifecycle, registry, parameters
Smart Contracts Full interface specs for all three contract types
Flows Step-by-step operational flows: deposit, withdraw, rollover, emergency
Core Formulas All pricing, NAV, gap, and cap formulas
Operations Market selection, position sizing, TVL limits — off-chain rules
House Exposure Revenue model, loss scenarios, buffer sizing
Security MEV, manipulation, reentrancy, governance centralization
Deployment Initialization order, capitalization requirements
ERC-7540 Alignment Compliance surface and points of divergence