The fija Token flow

The fija Token flow description.

The description below shows how a user’s deposit moves through the system and how the fija token (e.g., fjUSDC) is minted and later redeemed at NAV (Net Asset Value).

1. User deposit (wallet → vault)

   • The user sends one of the allowed input currencies.

   • If the deposit currency needs to match the target vault (e.g., USDC → USDC vault), funds go straight to the Vault Smart Contract.

2. Vault mints the fija token

   • On deposit, the Vault Smart Contract mints the partner-specific fija token (one token per vault/strategy) and sends it to the depositor (or a specified address).

   • The vault holds the strategy position on behalf of token holders and is the single interface for mint/redeem.

3. Vault funds the strategy

   • The vault deposits the deposit currency into the Strategy Smart Contract.

   • The Wrapper Contract (optional) can be used to make strategies available with different deposit currencies. The wrapper than converts the input (e.g., USDC → USDT) and passes the deposit currency to the strategy contract.

   • The strategy allocates into selected DeFi venues (e.g., Curve, Aave, Morpho), receiving their investment tokens (IT) or claims. Internally, the strategy accounts this position to the vault via a strategy token (ST).

4. Yield accrual & NAV

   • Periodically, the strategy harvests venue rewards/fees and rebalances to target allocations.

   • Harvested yield is compounded back into the strategy, increasing the strategy’s asset value.

   • As a result, the vault’s position appreciates and the fija token price (NAV) rises over time (no rebasing distributions).

5. Redemption (vault → user)

   • The user returns fija tokens to the vault to redeem at NAV (subject to the strategy’s liquidity policy/gates).

   • The vault burns the tokens and transfers the corresponding deposit currency back to the user’s wallet.

Key properties

• Per-partner, per-strategy isolation: each partner gets a dedicated vault; each vault mints its own fija token.

• Access control: only whitelisted addresses (per partner/regulatory model) can deposit, hold, or redeem.

• NAV-based token: returns are reflected by price appreciation; mint/redeem occurs at NAV.

• Transparency & controls: audited contracts, time-locked governance, emergency mode that exits venues and holds the deposit currency on-chain.

• Fees: user pays gas for deposit/withdraw; strategy operations (harvest/rebalance) are covered by fija’s performance share.