Overview

Important Notice: This documentation is provided solely for transparency purposes regarding the bizUSDT0 vault strategy. It does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any securities or investment products. Prospective depositors should conduct their own due diligence and consult with qualified legal, financial, and tax advisors before making any investment decisions.

Executive Summary

bizUSDT0 is a USDT0-denominated yield vault on Flare, deployed via the Superform protocol and curated by Bizantine. The vault deploys depositor capital into Mystic Core USDT0 V2 to capture lending yields and FLR incentive rewards. A rules-based rebalancing engine maintains an 8% reserve buffer for instant redemptions, while accumulated WFLR emissions are converted to USDT0 through SparkDEX V4 on a time and threshold-triggered harvest cycle.

The vault targets a sustainable net yield above the US T-bill rate with full on-chain transparency, Fordefi MPC custody, and a 10% performance fee levied on gains above a high-water mark.

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Core Parameters

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Strategy Architecture

Deposit Flow

Harvest & Rebalance

Redeem Flow

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Operating Stack

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Sleeve Design

Sleeve: Mystic Core USDT0 V2 (0xE8dd6A1e13244A27bDaa19CcBf33013647C675d1)

• Standard: ERC-4626 tokenized vault
• Asset: USDT0
• Yield Sources:
  • Lending spread from borrower demand on Mystic protocol
  • FLR incentive emissions distributed to USDT0 lenders
• Allocation Range: 88-92% of vault TVL (inverse of reserve target)
• Maximum single-sleeve concentration: 100% of deployable capital (by design, single-sleeve vault)

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Reward Conversion Leg

Accumulated WFLR emissions are harvested and converted to USDT0 through the following path:

FLR Exposure Policy: Total FLR-denominated exposure must remain within 2-3% of NAV at all times. If accumulated WFLR exceeds this band, an immediate harvest is triggered regardless of the standard schedule.

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Roles and Addresses

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Protocol Address Appendix

All addresses are verified on Flare mainnet:

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Operating Controls

FLR Emissions Control

• FLR exposure must stay within 2-3% of NAV.
• Harvest triggers enforce timely conversion.
• Volatility circuit breaker halts swaps during ≥10% hourly FLR moves.

Asset Control

• Only USDT0 is held at any layer of the vault.
• No leverage, no derivatives, no bridging to other chains.

Sleeve Control

• Single sleeve: Mystic Core USDT0 V2.
• Sleeve addition requires v1.1 amendment with full allocator review.

Swap Control

• Only authorized path: WFLR → USDT0 via SparkDEX V4.
• Slippage cap: 25 bps.
• Maximum per-swap size: $100K USDT0 equivalent.
• Router and pool addresses are hardcoded in the operational policy.

TVL Control

• Hard cap: $25M USDT0.
• Deposits are rejected when TVL is at or above the cap.

Reserve Control

• Target: 8% of TVL.
• Reserve is checked on every rebalance and deposit cycle.
• Rebalance triggers when reserve drifts by more than 1 percentage point from target.

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Authorized Action Set

No other actions are authorized. No leverage, no shorting, no cross-chain deployment.

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Deposit Flow

1. Depositor calls deposit on the Superform vault with USDT0.
2. If TVL cap ($25M) would be exceeded, the deposit is reverted.
3. USDT0 enters the reserve bucket.
4. On the next rebalance cycle, if reserve exceeds 8% target, excess USDT0 is deposited into the Mystic Core USDT0 V2 sleeve.
5. Depositor receives vault shares (ERC-20) proportional to their deposit.

Rebalance Flow

1. Calculate current reserve ratio: reserve / TVL.
2. If reserve ratio is above 12%: deposit excess into Mystic sleeve.
3. If reserve ratio is below 5%: withdraw from Mystic sleeve to top up reserve.
4. Rebalance is idempotent, which means no action if reserve is within 5-12% band.

Redemption Flow

The vault follows the ERC-7540 asynchronous redemption standard. Withdrawn funds are held in escrow and must be explicitly claimed by the depositor after the redemption request is fulfilled.

1. Depositor calls requestRedeem on the Superform vault, specifying share amount.
2. The vault processes the request asynchronously; funds move into an escrow claim state.
3. If the reserve bucket has sufficient USDT0, the request is fulfilled in the next cycle.
4. If reserve is insufficient, the vault withdraws the required amount from the Mystic sleeve.
5. If Mystic withdrawal queue is active, fulfillment is delayed until the queue clears.
6. Once fulfilled, the depositor calls claim to receive USDT0 from escrow.
7. Reserve is replenished on the next rebalance cycle if below target.

Reward Conversion Flow

1. Vault accumulates WFLR from Mystic incentive emissions.
2. When harvest trigger fires (time or balance), the vault initiates a swap:
   • Input: accumulated WFLR
   • Path: WFLR → USDT0 via SparkDEX V4 pool
3. Slippage is checked against the 25 bps cap. If exceeded, swap is aborted.
4. If swap size exceeds $100K equivalent, it is split into tranches.
5. Resulting USDT0 is allocated per rebalance rules (sleeve or reserve).