Vitality Treasury Trust (PULSECHAIN)

Vitality Treasury Trust (PulseChain) — Full Summary

1) Purpose & Scope

The Vitality Treasury Trust is a PulseChain-native, on-chain reserve designed to provide lasting collateralisation for the Vitality ecosystem. It:

  • Locks 4.32 billion VTY in an isolated, multi-signature vault on PulseChain (the “Cold Safe”).

  • Never sells those locked tokens. Their mark-to-market value floats with the market price established by the 888 million circulating supply.

  • Accepts whitelisted PulseChain tokens (PLS, PLSX, HEX, INC, pStables including pDAI, pWBTC and other PRC-20s) to deepen reserves and generate sustainable, policy-driven yield.

  • Distributes realised yield to the community and core programs under transparent rules, with explicit “no-expectations” framing.

This document is the canonical, non-technical summary for GitBook. A separate Policy Charter maintains parameter values (signers, thresholds, whitelists, per-asset caps, addresses, schedules, etc.).

2) Design Principles

  • Safety first: Assets live behind a dual-Safe architecture with strict allow-lists and spending limits.

  • Separation of concerns:

    • Cold Safe (Vault): Long-term reserves and the 4.32 b VTY lock.

    • Hot Safe (Operations): Small working float for rewards, rebalancing, and distributions.

  • Predictable, rules-based execution: Governance decisions execute only after checks (Snapshot + executor/module path).

  • Composability without complexity: Prefer simple, audited venues and avoid recursive/leverage loops.

  • Transparency: Publish addresses, policies, and dashboards; monthly on-chain report summaries.

  • Upgradability with friction: Changes follow notice windows and timelocks; emergency powers are scoped and documented.

3) Architecture & Governance

3.1 Safes & Roles

  • Cold Safe (Vault):

    • High threshold (e.g., 4/7).

    • Holds the TokenLock that escrows 4.32 b VTY (non-transferable; emits lock events).

    • Can only send to the Hot Safe or approved custody destinations (allow-list).

  • Hot Safe (Ops):

    • Moderate threshold (e.g., 3/5).

    • Has scope guards (contract/function allow-lists) and spending limits.

    • Conducts whitelisted treasury actions (LP deposit/withdraw, lending supply/withdraw, reward claims, distributions).

All signer counts, roles, and recovery procedures are defined in the Policy Charter.

3.2 Governance Execution

  • Voting: Off-chain on Snapshot.

  • Execution:

    • Preferred: Zodiac-style module/guard path (when/where available on PulseChain).

    • Fallback: a trusted executor signer that may only submit pre-formatted, Snapshot-approved transactions.

  • Controls: Cooldowns, quorum/majority thresholds, and execution bonds (if applicable).

3.3 Transparency & Reporting

  • Public artefacts: Safe addresses, TokenLock contract, whitelists, per-asset caps, strategy dashboards.

  • Cadence: Monthly treasury summary (positioning, P&L by sleeve, fees, buffers, pending distributions).

  • Optional: Proof-of-Reserves style monitoring/alerts for balances on PulseChain.

4) Asset Universe & Whitelisting

The Treasury accepts only whitelisted PulseChain assets, grouped into tiers:

  • Tier-1 (Core): PLS, bridged blue-chip stables (e.g., official bridged USDC), pWBTC (official bridge), PLSX.

  • Tier-2 (Selective): pDAI and other forked/algorithmic stables, HEX, INC, additional PRC-20s with adequate liquidity/oracles.

  • Wrapped assets: Only via official PulseChain bridge routes (contract addresses and bridge metadata recorded in the Policy Charter).

Whitelisting criteria include: contract transparency, issuer/bridge risk, liquidity depth, oracle coverage, historical peg behaviour (for stables), volatility, and market integrity. Each asset has hard TVL caps and per-strategy caps.

5) Yield Strategy (by Asset Class)

5.1 pDAI — Stable-Coin Sleeve (focused)

Objective: Low-volatility income with strict peg monitoring. Mechanisms:

  • Lending supply on reputable PulseChain money markets (when available/listed) to earn variable APY.

  • Stable-stable LP on PulseX (e.g., pDAI/bridged USDC) to earn swap fees and, where active, incentive emissions. Controls: Tier-2 limits; peg-health alerts; daily depth/volatility checks; zero leverage; no recursive borrowing.

5.2 pWBTC — BTC-Beta Sleeve (focused)

Objective: BTC exposure plus fee/interest income. Mechanisms:

  • Lending supply (where listed) to earn base APY; no recursive loops; conservative collateral use only.

  • PulseX LPs (e.g., pWBTC/PLS or pWBTC/USDC) to capture swap fees; position sizes scale with liquidity/volatility. Controls: Only official bridged wrappers; per-pool drawdown guards; rebalancing on variance triggers.

5.3 PLS — Native Staking Sleeve

Objective: Native chain alignment and baseline yield. Mechanisms: Validator operations or diversified validator partnerships; liquid-staking wrappers only if whitelisted. Controls: Slashing/uptime monitoring; operator diversification; capped exposure to any single provider.

5.4 PLSX — DEX-Aligned Sleeve

Objective: Participate in PulseX value flow via liquidity. Mechanisms: Provide liquidity (with or without incentives). Where incentive token INC is active, harvest and programmatically rebalance per policy. Controls: Concentrated-liquidity ranges (if used) sized to volatility; per-pool caps.

5.5 HEX — Time-Lock Sleeve

Objective: Isolated time-lock yield distinct from market-making. Mechanisms: Native HEX staking under separate addresses. Controls: Schedules laddered; no commingling with LP capital; clear accounting.

5.6 pStables, pTokens & Other PRC-20s

Objective: Diversified collateral and fees where justified. Mechanisms:

  • Stable-stable LPs (fees + potential incentives).

  • Lending supply on reputable markets when available. Controls: Tiered caps by risk; oracle/liquidity checks; exit runbooks maintained.

No leverage, no looping across all sleeves. Any new venue or pool requires governance approval and an updated risk note.

6) Borrowing & Internal Collateralisation

  • VITA as internal reference collateral: The locked 4.32 b VTY in the Cold Safe is not for sale and is not posted externally. Internally, it may serve as a reference for risk models and program parameters (e.g., Borrowing & Lending Using VTY for users), but the Trust does not liquidate VITA to meet liabilities.

  • External collateral intake: Whitelisted assets deposited by partners or the DAO can be used in yield sleeves under the same caps and controls.

7) Yield Distribution Policy

Realised net yield (after fees, gas, and buffers) is aggregated in the Hot Safe and distributed on a fixed cadence (e.g., weekly) following Snapshot approval.

Default allocation (governance-configurable):

  1. Borrowing & Lending Against Trust using VITA (User Yield): 75%

  2. T1 Reserve Treasury — In-App Rewards & Staking: 5%

  3. T2 Treasury Investment Staking — Additional Rewards: 5%

  4. Special Community Investment (grants/pilots/bounties): 5%

  5. Governance DAO (ops, audits, tooling): 5%

  6. No-Expectations Reserve 5%

Buffers & rollovers: If market conditions warrant, the DAO may temporarily increase the buffer and roll distributions forward (recorded in monthly reports).

8) Risk Management

  • Bridging & Wrappers: Only official, documented bridge routes; each wrapper has a runbook for redemptions and incident response.

  • Stables: Tiering by peg quality/liquidity; automation monitors deviations and depth; pDAI treated conservatively.

  • LP Risk: Volatility-aware sizing, variance triggers, and circuit breakers (withdraw to stable-stable or single-sided as needed).

  • Counterparty/Protocol: Prefer audited, widely used protocols; per-venue caps; continuous telemetry.

  • Key Management: Hardware-only signers; signer rotation procedures; emergency “break-glass” Safe with higher threshold.

  • Operational: All distributions are post-facto (on realised yield) to avoid dependency on forward yields.

9) Security & Controls

  • Modules/Guards: Scope guards (function/contract allow-lists), spending limits, and time-delayed changes to policy.

  • Change Management:

    • Proposal → forum notice (min. N days) → Snapshot vote → execution after cooldown.

    • Material changes (e.g., new venues, caps > X%) require super-majority and longer notice.

  • Emergency Actions:

    • Pause non-essential operations (LP withdrawals, incentive harvesting) via pre-approved runbooks.

    • Convene elevated threshold on Cold Safe for critical responses.

  • Monitoring: On-chain alerts for balances, cap breaches, variance triggers, and execution errors.

10) Compliance & “No-Expectations” Language

  • No sale of VTY by the Trust. The 4.32 b VTY is locked and serves as ecosystem backing.

  • No promise of profits. Yield distributions are policy outcomes, variable, and subject to governance and market performance.

  • Transparency over guarantees. All flows are traceable on-chain and reported; there are no fixed returns or entitlements.

(This section is descriptive, not legal advice. Jurisdictional disclosures may be appended by counsel.)

11) Implementation Checklist (Summary)

  1. Deploy Cold Safe (high threshold) and Hot Safe (operational threshold).

  2. Deploy TokenLock; transfer 4.32 b VTY to the Cold Safe-controlled lock; verify events.

  3. Stand up Snapshot; set execution path (module or trusted executor).

  4. Approve initial whitelist & caps (PLS, bridged USDC, pWBTC, pDAI, PLSX, HEX, INC).

  5. Enable PLS staking (validator/partner).

  6. Activate Tier-1 sleeves (e.g., stable-stable LP, lending supply where available); set strategy-specific caps.

  7. Publish addresses, dashboards, and the monthly reporting schedule.

12) FAQs (Short)

  • Why PulseChain? Alignment with Vitality’s community, low fees, and composable DeFi rails.

  • Can the Trust sell VTY? No. The 4.32 b VTY is locked and non-discretionary.

  • How do I see reserves? All addresses are public; monthly reports include links and snapshots.

  • Who sets the yield split? The DAO via Snapshot; defaults are in this summary and may evolve through governance.

  • What happens in a de-peg or exploit? Circuit breakers withdraw or reduce exposure; buffers can be increased; emergency procedures are executed by the higher-threshold Safe.

13) Glossary

  • Cold Safe / Hot Safe: Long-term vault vs operational wallet, each a multi-sig Safe.

  • TokenLock: Contract that escrows VTY and emits immutable lock events.

  • Sleeve: A segregated yield strategy with its own caps and rules.

  • Tier-1/2 Assets: Risk tiers based on liquidity, peg, oracle coverage, and provenance.

  • Snapshot: Off-chain governance voting framework.

  • Scope Guard: Allow-list module restricting which contracts/functions a Safe may call.

14) Versioning

  • This page: “Vitality Treasury Trust (PulseChain) — Full Summary v1.0”.

  • Change log: See /governance/changelog for parameter updates and effective dates.

  • Policy Charter: The live, parameterised specification referenced by this summary.

Quick Links (to populate in production)

  • Cold Safe address: TBA

  • Hot Safe address: TBA

  • TokenLock address: TBA

  • Snapshot Space: TBA

  • Public Dashboard: TBA

PreviousSecure Bridges / ExchangesNextTokenomics

Last updated