Economic SecurityLiquid Delegation VaultsVaults and Shares

Vaults and Shares

Liquid delegation vaults are ERC20 share tokens with an ERC-7540 redemption interface. Each vault represents a single delegation position with a fixed configuration.

Vault Configuration

Each vault is bound to:

  • Operator: the operator the vault delegates to.
  • Asset: the ERC20 asset deposited into staking.
  • Blueprint selection:
    • All: the vault tracks all blueprints the operator participates in, including future additions.
    • Fixed: the vault delegates only to a specific list of blueprint IDs.

Blueprint selection is set at vault creation and cannot be changed later.

Share Accounting

Vaults use the same share-based accounting model as MultiAssetDelegation with a small virtual offset to prevent first-depositor inflation. As a result:

  • Shares are minted on deposit and represent a claim on the underlying delegated assets.
  • Share value can move down if the operator is slashed.
  • Share value can change over time as the underlying delegation changes.

Liquidity Properties

Vault shares are standard ERC20 tokens:

  • Transferable between wallets.
  • Approveable for integrators and apps.
  • Composable with other token-based systems.

The vault itself remains the on-chain delegator; individual share transfers do not change the underlying delegation record.

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