Lava Protocol

Yield Engine - Calculations & Formulas

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Key Formulas (Both Vaults)
  • Share Price (cBTC/share) = totalAssets / totalSupply
  • Shares Minted = supply == 0 ? deposit : (deposit × totalSupply) / totalAssets
  • Portfolio reserve = 20% of totalAssets; remaining split by live on-chain bps
  • Cross-Chain: Borrow USD12 = (depositWc8 × BTCprice8) × 20% × 1e4; USDC6 = USD12 / 1e6
  • Cross-Chain NAV: NAV8 = ((collateralUsd12 − totalDebtUsd12) × 1e8 / BTCprice8) / 1e4
  • Harvest uses profit to repay debt first, then increases collateral → share price rises
  • NAV - Net Asset Value
  • Portfolio Vault token symbol: pcBTC
  • Cross-Chain Vault token symbol: xcBTC
Vault Token
pcBTC
Vault Token
xcBTC
cBTC Price (fixed)
$119,670
NAV (cBTC)
0
Share Price
1.00000000 cBTC
Cross-Chain Calculations (Live)
Total Debt (USD 12d)
0
Initial Bridged (USDC 6d)
0
Share Price (cBTC/share)
1.00000000

Notes: 8d=8 decimals (WcBTC), 6d=6 decimals (USDC), 12d=USD fixed-point. Harvest repays debt then increases NAV (Net Asset Value).

How the Yield Engine Flows (Both Vaults)
User
deposits cBTC →
Vault
wraps to WcBTC → keeps
Reserve 20%
Portfolio routes remaining by on-chain bps:
Zentra 30%
Satsuma 25%
Cross-Chain 25%
Institutional 0%
Zentra
supplies WcBTC (earns Supply APY). If leverage is enabled, borrow small USDC, loop safely (HF>1.0).
Satsuma
deposits into Ichi‑managed cBTC vault (fees + emissions, managed range).
Cross-Chain
supplies WcBTC → borrows ~20% USDC (LTV) → bridge out → yield source accrues profit → harvest pulls back & repays debt.
Institutional
allocates to institutional‑grade sources via bridge, returns profit periodically.
Harvest
profits repay debt first (if any), then increase WcBTC collateral → NAV rises → user’s vault tokens are worth more cBTC.
Reserve
20%
0 cBTC
Zentra
30%
0 cBTC
Satsuma
25%
0 cBTC
Cross-Chain
25%
0 cBTC
Institutional
0%
0 cBTC
Portfolio Strategies (Live Balances)
Zentra Adapter (WcBTC)
0
Satsuma Adapter (WcBTC)
0
Cross-Chain Adapter Custody (WcBTC)
0

These balances are what the portfolio vault has routed to each strategy.

Per-Allocation Yield (Assumed APY)
Zentra
APY
6%
Annual
0.00000000 cBTC
Monthly
0.00000000 cBTC
Satsuma
APY
8%
Annual
0.00000000 cBTC
Monthly
0.00000000 cBTC
Cross-Chain
APY
5%
Annual
0.00000000 cBTC
Monthly
0.00000000 cBTC
Institutional
APY
9%
Annual
0.00000000 cBTC
Monthly
0.00000000 cBTC

These APYs are illustrative for demo; actual returns depend on live strategy performance.

Example: What does a user get?
Deposit (cBTC)
Illustrative NAV increase (%)
Share Price After (demo)
1.02000000 cBTC
Shares Minted
0.001 shares
Value After (cBTC)
0.00102000
Illustrative Gain
0.00002000 cBTC

Note: This is a simplified demonstration for judges. The real yield depends on market conditions and realized profits used to repay debt.