Credit Strategy & the Curator

The Credit Strategy is the vault's arm into the credit protocol: it proposes, holds, and manages Credit Positions in Secured Lines of Credit on behalf of vault depositors.

The Curator (Manager)

The Manager — the Vault Curator — directs vault capital:

• Moves capital between the vault, the Credit Strategy, and the Liquid Strategy

• Proposes and accepts Credit Positions on Lines of Credit (addCredit), on terms the Borrower must mutually consent to

• Refinances positions (rates, deadlines, size) by mutual consent with the Borrower

• Approves per-line spending allowances

The vault can never lend to itself: proposing credit to a Line whose borrower is the vault or the strategy reverts.

Position lifecycle in the vault

• When a Line accepts the vault's credit proposal, the Credit Position Token is minted directly to the Credit Strategy, and the Line automatically calls back into the strategy to register the position — vault accounting picks it up atomically.

• Interest accrues position-by-position and flows into vault total assets (and hence the share price) continuously. Positions on Lines that become INSOLVENT or ABORTED are automatically excluded from total assets — impairment is reflected in the share price without manual intervention.

• Operators can withdraw repaid interest and undrawn deposit from positions back into the strategy, and apply a Line's Spigot Reserves to repayment (useAndRepay).

Secondary sales of positions

The Curator can sell a vault-held Credit Position for the vault's underlying asset by mutual consent with the buyer (swapCreditPositionForTokens): the position's ERC-721 transfers to the buyer's receiver, payment lands in the strategy, and vault accounting re-syncs. This is the onchain mechanism for LP syndication and portfolio management — positions can be distributed to other lenders without unwinding the underlying loan.

Accounting integrity

Anyone with the Operator role can trigger a sync: the strategy walks its position registry, drops any positions no longer owned by the vault, and accrues fees — keeping share pricing exact after transfers or sales.