# 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.).

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### 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.

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### 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).

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### 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.

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### 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`
