vLIQ: what a share is

An ERC-4626 share of the USDG that stands on the other side of every pair.

4 min read · pre-launch

The vault is the counterparty of last resort. USDG goes in, vLIQ comes out, and the vault takes whatever net position the two sides of each pair leave open. You never receive a payout; the price of a share moves instead.

Open trader profit counts against the price at once; open trader losses count only when they are realised. Both choices are the conservative one, so a depositor never buys in on a gain the vault has not yet collected.

Where the money comes from

• 50% of the 0.08% taker fee on every open and every close.
• The half of every skew fee that is not rebated to the thin side.
• The net result of the positions it holds against. This one can be negative.

Depositing and cashing out

• Minimum deposit 100 USDG. No entry fee, no exit fee.
• Cashing out is paid in the same transaction, at the price on the day, from the USDG that is not escrowed.
• Deposits can be paused by governance. Cashing out cannot.

Every week the vault's closing price is written on chain beside the hash of that week's Tide. See The Tide.