Facilitating trading

Trading uses an AMM (Automated Market Making) pool that always quotes a price. There is no bilateral matching. Price moves with reserves and trade size.

Visualisation of trading

At MVP there is no XVault quote screen. Custodians and users should check the live price on the Uniswap pool for the vault token, or read it from the chain. We are building a public price API that exposes spot price, TWAP, depth, and slippage estimates. A private beta is available for custodians.

What determines the price?

• In a constant product pool (v2 style), reserves X (vault token) and Y (USDC) satisfy X · Y = k. The instantaneous price of one vault token in quote terms is p = Y / X.

• When a trader buys vault tokens with ΔY USDC, the pool receives ΔY · (1 − fee). New reserves are Y' = Y + ΔY · (1 − fee) and X' = k / Y'. The trader receives ΔX = X − X' vault tokens. The effective trade price is p_eff = ΔY / ΔX. Slippage is (p_eff − p) / p.

• In a concentrated liquidity pool (v3 style), price moves inside an active tick range. Marginal price is represented on chain as sqrtPriceX96. As liquidity moves across ticks, the formula above still describes the intuition, but the output is computed across one or more ranges. Use the pool contract’s quote helpers or our TWAP reader for exact values.

Worked example: Suppose the USDC reserve is Y = 2,000,000 and the vault token reserve is X = 100,000, so spot price p = 20.00 USDC per token. A buyer sends ΔY = 100,000 USDC with a 0.30 percent fee. The pool adds ΔY · (1 − 0.003) = 99,700 to Y. New Y' = 2,099,700, k = X · Y = 200,000,000,000, so X' = k / Y' ≈ 95,217.9. The buyer receives ΔX = 4,782.1 tokens. p_eff = 100,000 / 4,782.1 ≈ 20.91. Slippage is about 4.55 percent.

Pool lifecycle

The pool is created automatically at deployment. You seed initial depth and can invite external LPs. Monitor liquidity and price impact, and adjust positions if you use concentrated liquidity.

Pauses

If a material custody or eligibility issue arises, pause deposits and, if necessary, pause trading. Balances remain safe. Publish a notice and an expected timeline.