Deposit Flow

This diagram shows the complete flow when a liquidity provider deposits assets into a tranche.

Process Overview

1. Pre-Flight Checks - Validate pause state, limits, and shutdown status
2. Calculate Shares - Determine share amount based on pool value
3. Transfer & Update - Move assets to Reserve and mint share tokens

Key Points

• ERC4626 Standard: Full compliance with vault standard
• Virtual Accounting: No funds held in Tranche contract
• Inflation Protection: First depositor gets 1:1, subsequent deposits use fair pricing
• Fee Handling: Optional deposit fees minted as shares to treasury

Related Flows

• Withdrawal Approval Flow - How LPs withdraw
• Repayment Flow - How interest increases pool value