vS Vault Protocol

Turn illiquid vesting NFTs into liquid DeFi tokens.

The Problem: Sonic airdrop recipients have vesting NFTs locked for 9 months, missing DeFi opportunities.
The Solution: Deposit your fNFT, get tradeable vS tokens immediately, redeem 1:1 at maturity.

🎯 What This Protocol Does

The vS Vault Protocol converts illiquid vesting Sonic NFTs (fNFTs) into liquid ERC-20 tokens (vS) that can be traded immediately. Users get cash today instead of waiting 9 months, while the protocol ensures full S tomorrow through a wait-and-harvest strategy.

Core Value Proposition

• Immediate Liquidity: Get 99% of fNFT face value as tradeable vS tokens
• Market Pricing: vS tokens trade at market-determined discounts (no artificial pegs)
• Zero Penalty Burns: Vault waits until maturity to claim, preserving full backing
• 1:1 Redemption: Every vS token backed by 1 S token after April 2026 harvest

🔄 How It Works (60 seconds)

1. Deposit fNFT → Transfer your vesting NFT to the vault permanently
2. Mint vS (-1%) → Get 990 vS tokens for 1,000 S face value (1% mint fee)
3. Trade/LP → Use vS tokens immediately on Beets, lending, or liquidity provision
4. Month 9: Vault Harvest → Protocol claims all fNFTs at 0% penalty burn
5. Redeem 1:1 (-2%) → Burn 990 vS tokens, receive ~970 S tokens (2% redeem fee when redeeming vS → S)

💰 Economics

Fee Type	Rate	Purpose
Mint Fee	1%	Protocol treasury funding
Redeem Fee	2%	Harvest gas + LP incentives
Total Cost	~3%	Price for 9-month early liquidity
Net Efficiency	~97%	Of original fNFT value

🛡️ Security Features

Upgradeable Design with Strong Safeguards

• ✅ Multisig Governance - All changes require multisig approval
• ✅ Public Timelock - 12h delay for upgrades, 2h for emergency actions
• ✅ Immutable Critical Parameters - Treasury address, fee structure, maturity dates locked
• ✅ Transparent Upgrades - All changes are public and delayed for user protection

Attack Prevention

• ✅ Self-delegation pattern - Prevents delegation manipulation attacks
• ✅ Reentrancy protection - All external functions protected
• ✅ Gas bomb protection - Efficient batch processing using ERC-1155 batch operations
• ✅ Proportional redemption - No hostage scenarios, always redeemable

Wait-and-Harvest Strategy

• ✅ Zero penalty burns - Vault never claims early, waits for 0% burn window
• ✅ Efficient batch harvesting - All ERC-1155 fNFTs are harvested in a single batch using the ERC-1155 standard
• ✅ Permissionless harvesting - Anyone can trigger harvest after maturity

🌊 Why This Helps Sonic

• TVL Growth: Locked airdrop value becomes active DeFi liquidity
• Reduced Dump Risk: Selling pressure spreads over 9 months vs day-one dumping
• User Retention: Recipients stay in ecosystem to farm, lend, and provide liquidity
• Market Efficiency: Price discovery for time value of locked tokens

📁 Repository Structure

vS/
├── src/                          # Smart contracts
│   ├── upgradeable/              # Upgradeable contract implementations
│   │   ├── UpgradeableVault.sol  # Main vault logic (deposit/harvest/redeem)
│   │   └── UpgradeableVSToken.sol # ERC-20 token (vault-minted liquidity)
│   ├── interfaces/               # Contract interfaces
│   └── base/                     # Base contracts
├── test/                         # Comprehensive test suite
├── script/                       # Deployment and management scripts
├── frontend/                     # React app for user interface
└── docs/                         # Additional documentation

📋 Documentation Files

File	Purpose
README.md	Main protocol overview and getting started guide

📊 Contract Addresses (Sonic Mainnet)

Contract	Address	Purpose	Explorer Link
UpgradeableVault	0xE2BB365a107441C1734a7aC08930dbEbb421249d	Main vault logic	View on SonicScan
UpgradeableVSToken	0x2286bA4fcbb2eF06C4349fAF6B8970ece593f5DD	vS token contract	View on SonicScan

🔍 Key Design Decisions

Why Wait-and-Harvest?

• Preserves full backing: No penalty burns = every vS backed by 1 S
• Eliminates timing risk: No complex streaming or partial claims
• Simplifies economics: Clear 1:1 redemption guarantee

Why Upgradeable with Safeguards?

• Security-first approach: Bug fixes and improvements possible via multisig governance
• User protection: All changes require multisig approval and public timelock
• Trust through transparency: Immutable critical parameters + upgradeable logic
• Balanced flexibility: Operational improvements without compromising core trust

Why Market Pricing?

• Honest price discovery: Market sets discount based on time value
• No artificial pegs: Protocol doesn't promise impossible economics
• Sustainable model: No protocol subsidies required

⚖️ License

MIT License - See LICENSE for details.

© 2025 vS Vault Protocol
Ready to turn waiting into doing.