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Reinvestment Vault (Vault Bond Tokens)

The Reinvestment Vault is a Bondi product built as an ERC-4626 wrapper around a Bond Token that compounds coupon payments back into the underlying Bond Token. Depositing btXXX into the vault mints vbtXXX: a standard ERC-20 whose value rises as each coupon is swapped for more Bond Tokens.

vbtXXX is the true DeFi composability layer for Bond Tokens. Holding btXXX directly means dealing with Distribution separately for each coupon, principal redemption, and bond call. vbtXXX consolidates that into one ERC-4626 interface: deposit Bond Tokens, hold a share, exit through redeem or withdraw. There is no admin force-transfer capability and vault supply changes only through standard ERC-4626 operations. Entry and transfer are permissionless. The vault pays stablecoins from underlying bonds' proceeds only to KYC-verified wallets. Before maturity, a non-verified holder receives the vault's Coupon or Principal Tokens only if the exit swap cannot clear. Vault claim tokens are also issued on claimCallProceeds and on an exit after maturity, and a verified holder can later redeem them for that stablecoin. Before maturity, every non-blacklisted holder can still exit in Bond Tokens. See Compliance at Reinvestment Vault Exit. vbtXXX integrates with any protocol (including lending markets and yield aggregators) enabling collateralization and leveraged looping strategies that are not possible with raw Bond Tokens.

Overview​

Standard path: A holder deposits Bond Tokens (btXXX) and receives vault shares (vbtXXX). Each coupon payment is routed through the vault, swapped for more Bond Tokens, and the resulting Bond Tokens are added to the vault's total assets, increasing the redemption value of every outstanding share without requiring any action from the holder.


The full abstraction: A vbtXXX holder interacts only with the vault contract. On exit via redeem or withdraw, they receive their pro-rata share of everything the vault holds (Bond Token backing plus any pending coupon or call stablecoin) per Compliance at Reinvestment Vault Exit:

  • Pending coupon reinvestment: stablecoins sitting in the vault because the DEX swap has not completed yet (oracle staleness, pool deviation, or slippage). In practice this almost never happens as Bondi arranges the onchain liquidity with its liquidity partners so coupon swaps clear promptly.

  • Call proceeds: stablecoins from a bond call, held as pendingCallStable. Those stablecoins do not sit in the vault for long. Bondi publishes how they will be handled before holders need to decide: a holder can unwind their slice, Bondi can buy more Bond Tokens with them, or they settle when a holder exits. Any non-blacklisted holder can unwind a chosen slice via claimCallProceeds without exiting the rest of their position. A KYC-verified holder receives stablecoin for the call slice, and for any coupon the vault has not reinvested yet. Everyone else receives vault Principal Tokens for the call, plus vault Coupon Tokens for any coupon the vault has not reinvested yet.

  • Principal at maturity: once principalSet is true, the vault redeems the holder's Bond Token slice at the Distribution itself. A KYC-verified holder receives stablecoin for the principal and any pending call, and for any coupon the vault has not reinvested yet. A holder who is not verified receives vault Principal Tokens for the principal and any pending call, plus vault Coupon Tokens for any coupon the vault has not reinvested yet. See Vault Settlement at Maturity.