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