Vault

Squad Vault is at the core of every Squad and it allows:

• any connected wallet to deposit fungible tokens and NFTs;

• any member to initiate a transaction to send fungible tokens and NFTs to any Solana address which will trigger a transaction for the Squad to confirm (we also support sending to .sol domains thanks to Bonfida);

• any member to generate a payment link into the Squad Vault via the Receive button;

• any member to initiate a swap of Vault assets which will trigger a transaction for the Squad to confirm;

• any member to initiate a deposit / withdrawal into yield generating vaults powered by Katana;

• anyone to view the Vault balances (powered by Pyth of course) and recent transactions of the Squad.

Deposit and Send

Deposit button allows depositing any fungible tokens and NFTs into the Vault. Deposit can be done by any Solana wallet connected to Squads even if that wallet is not a Squad member.

Any Squad member can deposit up to 5 NFTs in one transaction.

By clicking Send, Squad members can initiate a transaction to send fungible tokens and NFTs to their own wallet or another recipient (either using their wallet address or a .sol domain powered by Bonfida's Solana Name Service).

Receive

Receive button triggers a pop up that allows a Squad member to generate a link that can be shared as an invoice / request for payment.

Swaps

Any Squad member can initiate a transaction to swap assets held in the Vault, our swaps are powered by Raydium (we are working on possibility of making the long awaited Jupiter integration possible at the moment).

As always, clicking on the Swap button triggers a transaction for the Squad to confirm.

Earn Yield

Squad members are able to deposit funds from the Squads Vault into yield generating strategies powered by Katana. Here is a quick video about how it works.

For now, there are two main strategies, involving different assets: Covered calls and Cash-Secured puts. To learn more about the strategies and risks associated with structured products investing please visit Katana docs: https://docs.katana.so/welcome/what-is-katana.

Rounds

Katana vaults operate in a weekly round structure, meaning funds are locked in the strategy during the course of the period. Each period begins on Friday morning EST when the strategy rolls over and new options are minted. At this point, the new deposits from the queue are being deposited into the vaults and the funds, which were in the queue for withdrawal are getting released back to the Squads’ Vault.

Shares

Once a user's funds are incorporated into the next round and begin earning yield, the user will be minted Katana "shares" that represent their ownership in the vault. These shares can be claimed at any time and are only necessary to initiate a withdrawal. Once the shares are claimed they will appear in the Squads vault representing the ownerships of the deposited assets. When a user initiates a withdrawal those shares will disappear from the vault and a user will receive their funds instead.

Whether they are claimed or not, the shares change value over time to reflect the performance of the strategy. Thus, if the strategy is profitable over a given period, the shares will be worth more than when they were minted to the user.

Timing

If a user deposits or initiates a withdrawal anytime before the start of the period, their funds will remain in a deposit/withdrawal queue and will only begin earning yield / or getting transferred into the Squads’ vault starting Friday morning EST. It is therefore recommended that users deposit/withdraw on Thursday in order to ensure their funds are not sitting idly for an extended period of time.