Yield Mechanics

Where the yield comes from

The yield is real. It comes from the discount spread on trade finance receivables, not from token emissions or incentive programs.

When a fuel distributor buys energy commodities on 60-day credit terms, the resulting invoice is purchased by the vault at a discount. The difference between the purchase price and the face value at maturity is the yield.

Face value:       $100,000
Purchase price:   $97,000
Discount:         3%
Maturity:         60 days
Annualized yield: ~18%

This is the oldest form of finance. Trade receivables have existed for centuries. The innovation is not the yield source. it is putting it on-chain with privacy, ZK verification, and composable vault tokens.

NAV accrual

The vault NAV increases linearly as invoices approach maturity. The NAV oracle computes the current value of each invoice based on its accrual factor.

NAV(t) = Σ [purchase_price_i + (face_value_i - purchase_price_i) × accrual_factor_i]

accrual_factor = (t - t_purchase) / (t_maturity - t_purchase)

Example:
  Invoice purchased at $97,000 on day 0
  Face value $100,000, maturity 30 days

  Day 10:  accrual = 10/30 = 0.333  →  value = $98,000
  Day 20:  accrual = 20/30 = 0.667  →  value = $99,000
  Day 30:  accrual = 1.0            →  value = $100,000

The portfolio contains multiple invoices at different stages of maturity. As some invoices mature and pay out, new ones enter the vault. The yield is continuous and permanent.

NAV update cycle

The vault NAV is updated daily. Between updates, deposits are queued via the ERC-7540 async flow and settled at the next NAV cycle.

  Investor              Vault (Lagoon)          NAV Oracle
     │                       │                       │
     │  1. Request deposit   │                       │
     │  (USDXP)              │                       │
     │──────────────────────▶│                       │
     │                       │  funds held in silo   │
     │                       │                       │
     │                       │  2. Push new NAV      │
     │                       │◀──────────────────────│
     │                       │                       │
     │                       │  3. Settle pending    │
     │                       │  deposits at new      │
     │                       │  share price          │
     │                       │                       │
     │  4. Claim shares      │                       │
     │  (agaNMF)             │                       │
     │◀──────────────────────│                       │
     │                       │                       │

This is forward pricing: the share price is determined after the deposit, not before. No front-running is possible.