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What Is a vToken

A vToken is a share of an ArcX vault. Each vault accepts a supported input token and connects that position to an underlying protocol or strategy. A vault may generate:
  1. Yield — value earned by the vToken, reflected either in its NAV or in the price of the input token itself
  2. Credits — participation tracked over time for a points program and used to determine CreditToken issuance
Different vaults can use different input tokens, networks, protocols, yield models, points programs, and withdrawal rules.
vToken is the bridge between a vault and ArcX’s markets. Deposit to receive vToken, then use it to acquire discounted ST or concentrated points exposure through EPT.

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Deposit

Deposit the input token shown on the vault page. You receive vToken shares at the current : vToken shares=deposit valueNAV\text{vToken shares} = \frac{\text{deposit value}}{\text{NAV}} The app shows the supported network, input token, current NAV, expected vTokens, and any applicable fees before you confirm. NAV is the value of one vToken’s vault position:
  • for a vault without underlying APY, NAV remains constant
  • when yield is added to the vToken position, NAV changes to reflect that value
  • when yield accrues through the input token itself, it can instead be reflected in that token’s price
  • points are tracked separately and are not priced into NAV

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Yield

The vToken gets the vault’s yield. Depending on the vault design, that yield is reflected either in the NAV of the vToken or in the price of the input token itself. ST retains exposure to that value because it redeems for vToken at maturity. EPT does not carry the yield. For a zero-yield vault, ST is simply the underlying-token side and NAV remains constant.

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Credits and CreditTokens

Your vToken accrues credits while you hold it. Credits measure both the size and duration of your position, using NAV to account for the position’s value over time. Each credit period has a point weight. After the market operator submits that weight on-chain, the contracts automatically issue CreditTokens according to your share of the period’s credits.
Earlier finalized credit periods cannot be diluted by users who enter later.
If you buy or receive vTokens from another holder, your credit counter starts from the transfer time. The previous holder keeps the credits accumulated before the transfer. See Credit Mathematics for the NAV-based GCI formula and CreditToken for the resulting token.

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Withdrawal

A withdrawal converts vTokens back into the vault’s input token.
1

Review the vault terms

Check the network, input token, recipient, estimated amount, fees, and processing time shown in the app. Timing and availability are vault-specific.
2

Request the withdrawal

Submit the amount of vToken you want to withdraw. Once those vTokens are burned, they stop carrying yield and accruing credits.
3

Receive the input token

Complete any finalization step shown in the app. The vault’s input token is delivered to the selected recipient when processing completes.
If you hold ST or EPT, first sell them for vToken or recombine matching amounts of ST and EPT. Review the vault page for the current withdrawal rules and timing.