Section

6. Yield Vaults & Leasing Engine

Part of the MSV Protocol Documentation

MSV Protocol Documentation

Generated: 2025-08-25 22:06:44

6. Yield Vaults & Leasing Engine

At the core of the MetaSoilVerse Protocol lies its Vault System , a trust-minimized mechanism that allows users to lease tokenized real-world assets (RWAs) and earn yield based on their productivity. These vaults are not speculative in nature but are grounded in real economic activity.

6.1 Vault Architecture

Each asset onboarded onto the protocol can create a dedicated vault tied to its revenue model. A vault holds the staked $MSVP tokens or accepted stablecoins and is responsible for:

• Receiving lease deposits from users

• Distributing proportional yield

• Enforcing withdrawal conditions and slippage protections

• Triggering burns or redistributions (if configured)

Each vault is governed by a smart contract template customized for the asset type and jurisdictional compliance wrapper.

6.2 Leasing Mechanism

The leasing process follows a three-stage flow:

• Lock Phase :

• Users stake MSVP or stablecoins into the asset vault.

• A 0.5% slippage reserve is deducted and routed to the LP insurance module.

• Yield Phase :

• Assets generate income off-chain (e.g., rent, factory production).

• This income is tokenized and distributed proportionally to vault stakers.

• Depending on asset class, yield is paid in:

• Stablecoins (e.g., USDT, USDC)

• Tokenized cashflow tokens (e.g., yUSDT)

• MSVP emissions (in special vaults)

• Withdrawal Phase :

• Users withdraw their stake and accumulated yield.

• Withdrawal may be subject to cooldown and minimum vault lock duration.

6.3 Compounded Interest Formula

For vaults offering compounding returns, the yield is calculated using the standard interest compounding formula:

A = P × (1 + r / n) ^ (n × t)

Where:

• A = final amount after time t

• P = initial principal amount

• r = annual interest rate (as a decimal)

• n = number of compounding intervals per year

• t = time (in years)

• Example : If a user deposits 10,000 MSVP at an annual yield of 12% compounded monthly, after 1 year:

A = 10,000 × (1 + 0.12 / 12)^(12 × 1) ≈ 10,000 × (1.01)^12 ≈ 11,268 MSVP

6.4 Slippage Reserve Logic

To prevent abuse, cover exit risk, and stabilize earnings, each vault applies a slippage fee on deposit and withdrawal:

Slippage Fee = P × s

Where:

• P = amount deposited or withdrawn

• s = slippage rate (e.g., 0.005 for 0.5%)

The fee is sent to a Vault Safety Reserve , used for:

• Covering temporary deficits

• Protecting against early exits in locked vaults

• Funding buyback/burns during drawdown cycles

6.5 Yield Distribution Mapping

Real-world income is aggregated by asset operators and mapped on-chain via verified oracles or attestors.

Yield → On-Chain Payout:

Income (real) → Oracle → Vault Pool → Stakers

Payout forms:

• Direct stablecoin transfers (preferred)

• Wrapped tokenized receipts (like yTokens)

• Secondary MSVP rewards (if approved by DAO)

6.6 Dynamic APR Model

Each vault calculates Annual Percentage Rate (APR) based on:

• Vault age (older vaults stabilize returns)

• Liquidity depth (larger pools enable more efficient leasing)

• Real-world income logs from previous epochs

Formula (Simplified):

APR_vault = (Income_epoch / TotalVaultStake) × (12 / EpochsPerYear)

APR adjusts dynamically, and vault dashboards show both base APR and effective APR (after slippage and reserve deductions).

6.7 Compliance Integration

All vaults adhere to compliance modules (from Section 2), which enforce:

• Investor eligibility (e.g., KYC)

• Country-specific taxation

• Legal yield share thresholds

These checks are embedded directly into the vault entry logic, ensuring compliance-by-default. The MetaSoilVerse vault system introduces a robust leasing mechanism built for tokenized real-world assets. By combining compounding logic, slippage safety, and real yield mapping, it ensures that protocol participants benefit fairly and transparently , not just from speculation, but from actual economic productivity.