Overview
For Custodians
A custodian is an approved operator that creates and runs vaults. They define eligibility, onboards assets, safeguards storage and insurance, manages distributions, and publishes clear disclosures.
$XVAULT is a decentralised protocol, meaning anyone can participate as a custodian. However, to gain credibility, custodians may seek audits. Auditors are approved by the Exotic Vaults DAO.
Note: Onboarding custodians is currently requires close collaboration with the developer. To become a custodian, please reach out to the Exotic Vaults Team.
What does the $XVAULT protocol provide
Standardized contracts: vault token (ERC-20), ERC-721 locker, factory, eligibility registry, EVEC distribution module.
Automatic pool creation: when you deploy a vault, the factory auto-creates and initializes the AMM pool for USDC ↔ vault token (MVP default). Long term, governance can allow other quote assets.
Default mechanics: one way deposits, pro rata EVEC distribution on yield and exits, KYC gate on redemption, audit hooks, TWAP price reader, pause controls.
App surfaces: vault pages that show disclosures, eligibility, pool details, and distribution history.
What you configure (at creation) and what you can change later
Create a vault, and set your own characteristics
You manage after launch: intake and verification, storage and insurance, seeding and additional liquidity, incident handling, sales policy execution, distribution triggers, pause and resume, transparency updates.
You cannot change: the one way nature of deposits, the 10 percent custodian allocation on each deposit, pro rata EVEC math, the KYC gate on redemption, and core safety controls.
Custodian responsibilities
Publish eligibility and disclosures before launch.
Operate intake, verification, storage, and insurance.
Seed initial liquidity using the custodian allocation.
Onboard assets, and safeguard custody, including storage and insurance if applicable.
Trigger and documenting distributions on exits or yields, minting and routing EVEC.
Maintain records for compliance and future audits.
Communicate status, pauses, and lifecycle events to users.
Incentives
Seeding allocation: 10 percent of newly minted vault tokens on each deposit are allocated to the custodian to seed liquidity. This is an allocation at mint, not a percent of trade fee.
Trading fees are split between custodians and liquidity providers. Liquidity providers collect the majority of trading fees. Custodians may participate as LPs.
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