> For the complete documentation index, see [llms.txt](https://fija.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fija.gitbook.io/docs/overview/fija-token/the-fija-token-flow.md).

# The fija Token flow

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.

<figure><img src="/files/tR5usxhdKtxZMZW5RgHi" alt=""><figcaption></figcaption></figure>

**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.


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