Core Concepts

Vault Shares

ERC-20 tokens that represent a user’s proportional ownership in the vault. Shares are minted when users deposit SOM and burned when they withdraw, ensuring fair distribution of both assets and rewards.

Points Controller

A smart contract system that manages airdrop point accrual from multiple sources within the Somnia ecosystem. It uses global and user indexes to track progress efficiently without requiring constant on-chain updates for every user.

Strategy Router

The central orchestrator that manages allocation of deposited funds across different yield strategies. It distributes assets based on predefined weights, rebalances dynamically, and ensures liquidity for withdrawals.

Strategy Adapter

Modular contracts that implement specific yield-generating strategies. Each adapter follows the IStrategyAdapter interface, enabling standardized interactions and seamless addition of new strategies.

Lockup Period

A set duration during which user funds remain locked in the vault. Longer lockups typically offer higher multipliers for point farming and yield generation, while shorter ones provide more flexibility.

Early Exit Fee

A penalty applied when users withdraw before the lockup period ends. Collected fees are directed to the protocol treasury and help discourage premature withdrawals.

Global Index

A cumulative measure of point accrual rates across all users. This allows efficient calculation of rewards without storing individual data continuously.

User Index

A tracking mechanism that records each user’s position relative to the global index, ensuring accurate and gas-efficient point calculations.