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Knox Finance Docs
  • Knox Finance
  • Overview
    • Options
    • Covered Calls
    • Risk Management
    • Vault System
    • Options Auction
    • Fee Structure
  • Liquidity Providers
    • Depositing Collateral
    • Withdrawing Collateral
    • Redeeming Claim Tokens
  • Option Buyers
    • Buying Options
    • Withdrawing Options
    • Exercising Options
  • Developers
    • System Architecture
    • Epoch Mechanics
    • Auction Lifecycle
    • Contract Deployments
  • Appendix
    • Delta Strike Formula
    • Option Pricing Formula
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  1. Liquidity Providers

Depositing Collateral

Collateral (wETH, wBTC, DAI, etc) is deposited into the queue where it remains until the epoch is processed once per week.

Vault Tokens

Knox Finance uses two types of tokens to keep track of new and existing deposits:

  • ERC1155 claim tokens represent assets deposited into the queue that have not yet been moved to the vault, at a 1:1 rate

  • ERC4626 vault shares represent shares of the vault assets

At the beginning of every new epoch, ERC1155 claim tokens are converted into ERC4626 vault tokens shares based on the vault's current price per share.

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Last updated 2 years ago