Vault Shares
Every dedicated vault issues its own share token on deployment. These shares represent the client's position in the vault — the accounting mechanism by which deposits, yield, and withdrawals are tracked on-chain.
One token per vault
Each vault is a standalone ERC‑4626 contract and its own ERC‑20 share token. Share symbols follow the te{Asset} convention — teUSDC, teWETH, teWBTC — matching the vault's underlying asset.
When a client deposits, shares are minted to their wallet. When they withdraw, shares are burned proportionally to the amount withdrawn. The total supply of a given vault's shares always corresponds to 100% ownership of that vault — since there's one vault per client, the client holds the full supply.
Share price and auto-compounding
A vault's share price is totalAssets / totalSupply. As yield accrues into the vault's positions, totalAssets grows; totalSupply stays constant (no new shares are issued for yield). The share price goes up, and each existing share becomes worth more of the underlying asset.
This is auto-compounding by construction — there is no separate rewards token, no claim step, and no re-staking. The yield is inside the vault from the moment it's earned, and it keeps earning.
Convert between shares and underlying assets using standard ERC‑4626 views:
function convertToAssets(uint256 shares) external view returns (uint256);
function convertToShares(uint256 assets) external view returns (uint256);
function totalAssets() external view returns (uint256);Non-transferable
Vault shares are non-transferable outside of permitted operational flows (deposit, withdrawal, scheduled-withdrawal mechanics). transfer and transferFrom to arbitrary addresses will revert.
This is deliberate and structural:
Regulatory. Shares are non-transferable by design, which is intended to keep the DCV outside securities and collective-investment-scheme characterisation. Tesseract's legal analysis supporting this design is available to institutional counterparties under NDA.
Ownership integrity. The vault's owner on-chain is the wallet that deployed it. Non-transferability preserves that identity through the vault's entire lifetime.
Compliance. Whitelist-based access means every address interacting with the vault is KYC'd — transferring shares to a non-whitelisted wallet would bypass this.
The practical consequence: shares are cryptographic proof of position, not a tradable instrument. They can be read, priced, and redeemed, but not sold on a secondary market.
Reading client positions
For a simple "how much is this client's position worth":
For decoded transaction history (deposits, withdrawals, share mints and burns) and performance time-series, use the Public API.
On deployment
The deployer pulls the initial deposit from the caller and mints shares in the same transaction — see Deploying a Vault for the exact mechanics. The first share price is close to 1:1 against the underlying and drifts upward as yield accrues.
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