Vault
The Midgard vault is a share-price vault for GARD.
It exists to fund leverage and to capture the lending-side upside of the protocol.
What depositors receive
Section titled “What depositors receive”When a user deposits GARD:
- the vault mints shares
- those shares represent a proportional claim on vault assets
- gains accrue into share price automatically
There is no separate “claim yield” button. Yield is reflected in what your shares are worth.
Where vault yield comes from
Section titled “Where vault yield comes from”Vault value grows from:
- leverage loan interest
- liquidation outcomes
That means the vault is not farming a side reward token. It is participating directly in Midgard’s credit layer.
Deposit lock
Section titled “Deposit lock”Each deposit is locked for:
- 2 days
Locks are tracked per deposit tranche, not with one global timestamp. New deposits do not relock older unlocked shares.
Withdrawals are queued
Section titled “Withdrawals are queued”Withdrawals are not instant promises.
The flow is:
- Request withdrawal
- Shares are removed from active balance
- The corresponding asset amount is reserved
- The request enters the withdrawal queue
- The queue head can be claimed or processed once idle liquidity is available
This prevents the vault from pretending that lent-out assets are instantly withdrawable.
Permissionless queue progression
Section titled “Permissionless queue progression”The queue head can be processed permissionlessly.
That means:
- the owner can claim their own request
- anyone can advance the queue head
- funds always go to the recorded owner, not the processor
This avoids queue deadlock if the head user disappears.
How vault accounting works
Section titled “How vault accounting works”The vault tracks:
- idle assets
- outstanding principal
- accrued interest
- pending withdrawal assets
Total vault assets are computed as:
idle + principal + accrued interest - pending withdrawals
This keeps queued exits reserved out of NAV instead of letting them be double-counted.
What users should understand
Section titled “What users should understand”Vault deposits are exposed to protocol activity, not passive treasury management.
- more leverage usage can mean more interest income
- more unhealthy leverage can mean more liquidation upside
- idle liquidity matters for exit speed
The vault is simple to use, but it is still taking protocol credit risk.
Why this design is cleaner
Section titled “Why this design is cleaner”The current vault model intentionally avoids extra complexity:
- no manual yield claim
- no separate reinvest button
- no fake “available yield” number disconnected from share price
It is meant to feel like a productive capital pool, not like a farm dashboard.