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Protocol Lens

Shares

Share tokens

Section titled “Share tokens”

In DeFi shares are very often represented as tokens (most commonly ERC20).

Acquiring share tokens

Section titled “Acquiring share tokens”
  • You get share tokens when you deposit assets to a vault (primary market).
  • You could also buy share tokens on secondary markets.

Redeeming share tokens

Section titled “Redeeming share tokens”
  • You can redeem the vault assets that your share tokens are worth from the vault (primary market).
  • You could also sell your share tokens on secondary markets.

Properties

Section titled “Properties”
  • Your share tokens track a proportional right to withdraw assets from the vault.
  • When you add or remove funds, shares mint or burn to keep proportions fair, ensuring no one dilutes others unfairly.

eg if you hold 1% of total shares, you claim 1% of the pool’s value or earnings.

Number

Section titled “Number”

The share token number that represents the proportion does not matter, as long as the proportion is correct.

  • 10 share tokens in 100 total circulating = 10%
  • 100 share tokens in 1000 total circulating = 10%

Value

Section titled “Value”

What is the value (in token assets) of your share:

1 Share token value in vault assets=total vault assetstotal circulating supply of share tokens\normalsize{\text{1 Share token value in vault assets}} = \frac { \normalsize{\text{total vault assets}} } { \normalsize{\text{total circulating supply of share tokens}} }