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Investor Deposit Flow

This document covers the share-based deposit flow in King's Vault V2. Dual pricing compares the current strategy valuation with the confirmed NAV when calculating shares; it is an anti-dilution measure, not a guarantee against all valuation or market risks.

Current Mainnet Product Vault What The User Receives
Ethereum Network Lending KingsVaultV2 King's Vault shares representing the lending vault position.
AAVE GHO Saving KingsVaultV2 King's Vault shares, not Aave sGHO directly.
Hyperliquidity Provider (HLP) KingsVaultV2Async King's Vault shares; withdrawal is asynchronous.

Sequence Diagram

When an investor deposits into the vault, the vault calculates the required shares using the dual-pricing logic before transferring the assets.

sequenceDiagram
    participant Investor
    participant Asset as ERC20 Asset
    participant Vault
    participant Controller

    Investor->>Asset: approve(Vault, assets)
    Investor->>Vault: deposit(assets, receiver)
    Vault->>Controller: markedValues(vault)
    Vault->>Vault: calculate shares with dual pricing
    Vault->>Asset: transferFrom(investor, vault, assets)
    Vault->>Vault: mint shares to receiver

Requirements

The vault enforces several restrictions before allowing a deposit to succeed:

Requirement Source
Vault not paused _deposit(... whenNotPaused)
Vault not shutdown _deposit(... whenNotShutdown)
Caller has Roles.INVESTOR on vault _deposit(... onlyRole(Roles.INVESTOR))

Additionally, the ERC-4626 view functions maxDeposit(receiver) and maxMint(receiver) return 0 if the vault is paused, shutdown, or the receiver lacks Roles.INVESTOR, providing front-ends an easy way to check eligibility.

Allocation And Costs

A successful vault deposit does not mean all assets have already reached the external yield source. Allocation is handled through the strategy invest flow; HLP also requires cross-chain and HyperCore processing.

For AAVE GHO Saving, users deposit USDC and receive King's Vault shares. The Controller allocates capital to the Saving strategy, which converts USDC → GHO → sGHO through the Aave-approved route. The vault or strategy may temporarily hold USDC or GHO while handling deposits, withdrawals, routing, or liquidity management.

The Performance Fee for all three products is 0%. External route costs and transaction gas are separate. See GHO Saving withdrawal costs and NAV settlement for net-USDC valuation and yield treatment.