# Intro

<figure><img src="/files/dhi9QpVIHnQLx74jVdJT" alt=""><figcaption></figcaption></figure>

SherpaEarn is a multi-chain yield vault that generates seamless returns on deposited USDC through on-chain delta-neutral strategies. These include positive carry capture, basis trading, volatility hedging, and other strategic arbitrage opportunities. Capital allocation is managed by [Hedgemony](https://x.com/Hedgemony), a digital asset fund that leverages machine learning models and quantitative analysis to deliver consistent, risk-optimized returns. The strategy emphasizes diversification, algorithmic rebalancing, and macro-level market awareness.

The vault is designed to make yield generation effortless for users: simply [deposit](/sherpaearn-vault/depositing) your `USDC`, wait for the next cycle to begin, and returns start accruing automatically. If you’d like to jump straight in, refer to the [Quick Start Guide](/sherpaearn-vault/quick-start-guide) for a concise TLDR and instructions on making your first deposit.


# Quick Start Guide

{% stepper %}
{% step %}
Navigate to the SherpaEarn [main page](https://sherpa-vault.vercel.app/) and select the network you would like to [deposit ](/sherpaearn-vault/depositing)on.

<figure><img src="/files/OLd7iyoLty6tXMZvI1Uy" alt=""><figcaption><p>Pay attention to the amount of available capacity on the chain you are selecting.  If insuficient select another chain instead.</p></figcaption></figure>
{% endstep %}

{% step %}
Connect wallet on any [integrated network](/sherpaearn-vault/multichain-architecture/networks) and deposit `USDC` using the deposit tab.

<figure><img src="/files/ySxjCK4A4YkjieCeDN4F" alt=""><figcaption><p>First, approve the amount of <code>USDC</code> you'd like to deposit, and then confirm a second transaction which sends your <code>USDC</code> to the vault.</p></figcaption></figure>

<figure><img src="/files/Rttwx9vmnnsVCjlMoU3T" alt=""><figcaption><p>After depositing you'll see a confirmation summarizing the estimated amount of <code>shUSD</code> you'll receive.  Your deposit is now pending.</p></figcaption></figure>
{% endstep %}

{% step %}
Simply wait a few hours for the next cycle to get rolled forward.  Once this happens, your `shUSD` will be minted into the vault and you will start earning [yield](/sherpaearn-vault/shusd/yields).

<figure><img src="/files/Odz8mEnYRoXvC5fHbFkz" alt=""><figcaption><p>Average wait time is about 12 hrs.</p></figcaption></figure>
{% endstep %}

{% step %}
You can take possession of your `shUSD` by [claiming](/sherpaearn-vault/depositing/claiming-shusd) it. Claiming is optional, however it is recommended since you will capture additional [points yield](/sherpaearn-vault/launchpool-points-campaign) on top of the base `USDC` yield offering.&#x20;

<figure><img src="/files/xzXpJtRD170xIEhVgXpM" alt=""><figcaption><p>Claim by clicking 'Claim now' below the cycle progress bar.</p></figcaption></figure>
{% endstep %}

{% step %}
Thats it!  Just hold your `shUSD` and all profits accrued through the underlying yield strategy will be compounded automatically into your principal deposit!

<figure><img src="/files/sx6f2xdMbRk7swn1UwDT" alt=""><figcaption><p>The price trends up over time: no claiming, swapping, or monitoring is needed to capture your earnings.</p></figcaption></figure>
{% endstep %}

{% step %}
(OPTIONAL) Bridge to other networks and explore more advanced ways to use your `shUSD` within partner DeFi apps or other derivative products.  \
\ <mark style="color:$info;">As</mark> <mark style="color:$info;"></mark><mark style="color:$info;">`shUSD`</mark> <mark style="color:$info;"></mark><mark style="color:$info;">adoption grows, users will be able to build leveraged positions by layering yields across multiple protocols.</mark>

<figure><img src="/files/yaSRNT2SJdpB2uwcwfcV" alt=""><figcaption><p>You'll be sending <code>shUSD</code> from the source and receiving the exact same amount on the destination.</p></figcaption></figure>
{% endstep %}

{% step %}
If you would like to exit the vault, you can do so by first navigating to the chain which you hold your `shUSD` token on.

<figure><img src="/files/9jrQcNAhSpBc3fXorwem" alt=""><figcaption><p>Enter the amount of <code>shUSD</code> into the appropriate field and <a href="/pages/yge7BMXGP4wrDlEILfiq">withdraw</a>.</p></figcaption></figure>
{% endstep %}

{% step %}
Wait for the cycle to get rolled over once again and afterwards you can then finalize your withdrawal.

<figure><img src="/files/eHmZLgvcRsXrT91LzEO1" alt=""><figcaption><p>Click on the 'Finalize' button to prompt the transaction.</p></figcaption></figure>
{% endstep %}
{% endstepper %}


# F.A.Q.

## Depositing & Withdrawing

**Q: What is the minimum deposit?** \
A: 1 `USDC`

**Q: What is the maximum deposit?** \
A: Whatever the spare capacity is on the vault for a given network.  We dont set per user caps, so the max is entirely dependent upon what space the vaults have available.

**Q: When can I withdraw?**\
A: Anytime. Standard withdrawals take 1 cycle ( less than 24 hours).

**Q: Why do I have to wait a cycle?**\
A: This allows the vault to settle positions and ensures fair pricing for all users.

**Q: I just deposited, why did'nt I get shares (`shUSD`) immediately?**\
A: Shares are minted when the current cycle ends and the new cycle begins (approximately every 24 hours).

## General

**Q: Which chain should I use?**\
A: For smaller deposits, Base or Monad are recommended for lower fees. For large depositors Ethereum provides larger capacity.

**Q: Can I deposit on one chain and withdraw on another**\
A: Yes! Bridge your `shUSD` to any integrated chain, then withdraw to `USDC` on that chain.

**Q: Does bridging cost anything?**\
A: A Small network fee and CCIP messaging fee applies.  Aside from that no, your `shUSD` will be transferred across chains at a 1:1 ratio.

**Q: Are prices the same across all chains?**\
A: Yes. All chains maintain the same global price per `shUSD`, synchronized each and every cycle.

**Q: Are there any fees?**\
A: Management fees and performance fees apply.

**Q: What happens if the website goes down?**\
A: You can still interact directly with smart contracts via Etherscan. Your funds always remain safe on-chain.

Q: What is `sherpaUSD`?\
A: An non user-facing accounting token that tracks the `USDC` deposited into the vault at a 1:1 ratio.

## Yield & Points

**Q: How often are yields distributed?**\
A: Yields are automatically compounded each cycle (approximately every 24 hours). No manual claiming needed.

**Q: How often are points distributed?**\
A: Routine points distributions are made each cycle (approximately every 24 hours). Bonus points are issues once individualmilestones are met.&#x20;

**Q: When can I redeem Sherpa points?**\
A: At token launch (date TBA). Points are tracked in the dashboard until then.

**Q: What's the redemption ratio for points?**\
A: 10 Sherpa points = 1 Sherpa token (10:1 ratio)

**Q: Can I choose to opt out of earning points from the Launchpool?**\
A: Yes, just dont claim your `shUSD` from the vault.  You'll receive 100% of your yield in `USDC`. No points earned.

**Q: Can the team access my funds?**\
A: No. The vault is non-custodial. Only you control your `shUSD` tokens.

**Q: Do i get different amounts of yield by depositing on different chains?**\
A: No, all chains share the exact same yield growth rate.

## Risks

**Q: Is Launchpool risky?**\
A: No additional risk to your principal. You're only allocating yield, not your deposit.

**Q: Can I lose money?**\
A: Yes. While strategies aim for consistent returns, losses are possible. Only deposit funds you can afford to lose.


# Depositing

### How to Deposit

A user can request to deposit into the vault anytime by first choosing the network of their choice and then specifying an amount within the Deposit tab. &#x20;

<figure><img src="/files/HFs3p3GW8hI37zhlSpsE" alt=""><figcaption></figcaption></figure>

Once their approval and deposit transaction settles onchain they will have a *pending deposit*.  In order for the deposit to be officially completed a user must wait a short period of time for the next [cycle](/sherpaearn-vault/cycles) to be advanced, after which, the user can optionally [claim](/sherpaearn-vault/depositing/claiming-shusd) their `shUSD` for added benefits.

### **Deposit Flow & Pricing**

The user will receive `shUSD` in accordance with the upcoming cycle's shUSD price.  Future shUSD prices cannot be known ahead of time, so the 'You Receive' amount is only an estimation based on the historical daily yield rate:

<p align="center"><em><mark style="color:$info;background-color:$info;">estimated</mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;"><code>shUSD</code></mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;">received =</mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;"><code>USDC</code></mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;">deposit amount / (current</mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;"><code>shUSD</code></mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;">price</mark> <mark style="background-color:$info;">×</mark> <mark style="color:$info;background-color:$info;">(1 + daily average yield))</mark></em></p>

The yield amount applied during the cycle advancement and the amount of withdrawals made before the current cycle ends both have a direct impact on the `USDC` : `shUSD` conversion rate.

<mark style="color:$info;">Since the upcoming cycle's</mark> <mark style="color:$info;"></mark><mark style="color:$info;">`shUSD`</mark> <mark style="color:$info;"></mark><mark style="color:$info;">price is used for deposits, a user's shUSD shares are minted after their deposit it made (during the cycle advancement process.) The sherpaUSD backing reserves for the deposit are minted instantly (see</mark> [<mark style="color:$info;">sherpaUSD</mark>](/sherpaearn-vault/sherpausd)<mark style="color:$info;">).</mark>

**Example deposit scenario:**  \
&#x20;  The vault is on cycle #4, and the share price is 1.000683 USDC per 1 `shUSD`.

1. The user deposits $100,000 USDC, they then wait \~6 hours for the cycle to advance.
2. After advancing to cycle #5, the updated share price is now 1.001516 USDC per `shUSD`, and the user is eligible to [claim](/sherpaearn-vault/depositing/claiming-shusd) their 99,848.629 `shUSD` from the vault.&#x20;
3. This redemption can happen during cycle #5 or anytime afterwards.

   &#x20;     <mark style="background-color:$info;">USDC deposit amount ÷ finalized cycle's price = amount of</mark> <mark style="background-color:$info;"></mark><mark style="background-color:$info;">`shUSD`</mark> <mark style="background-color:$info;"></mark><mark style="background-color:$info;">received</mark>\
   &#x20;     <mark style="background-color:$info;">e.g.: 100,000 ÷ 1.001516 ≈ 99,848.629</mark> <mark style="background-color:$info;"></mark><mark style="background-color:$info;">`shUSD`</mark>

### **Deposit Limits**

Users must deposit at least 1 USD per deposit transaction.  There is no maximum deposit amount, however deposits are limited by the available capacity left within the vault on a given network. See [vault capacities](/sherpaearn-vault/multichain-architecture/vault-capacities) for more information.


# Claiming shUSD

After the cycle advances a user's *pending deposit* gets converted into a *staked deposit.*  A user may then choose to claim their `shUSD` share tokens.

<figure><img src="/files/oA2U5yaiInevaJB5sjm7" alt=""><figcaption><p>Clicking the 'Claim Now' button to proceed with the redemption process.</p></figcaption></figure>

Claiming is an optional step.  If a user decides not to claim they will still earn the base `USDC` yield on their entire deposit.  All additional points yield will be forgone for users who do not claim their `shUSD` and hold the tokens in their possession.  See the [Yields](/sherpaearn-vault/shusd/yields) page for more info.

There is no deadline or time window for claiming `shUSD` tokens.  The user's `shUSD` entitlement will he held within the vault indefinitely until the user manually redeems it or withdraws it.

#### **Auto-redemption Mechanism**&#x20;

This allows for claiming of vault held `shUSD` while also triggering a withdrawal request, resulting in a multi-function call transaction.  There are three possible scenarios that trigger this:

1. A user tries to withdraw already claimed `shUSD` from the vault while still having unclaimed shUSD.
2. A user withdraws a combination of both claimed and unclaimed shares at the same time.
3. A user withdraws without claiming any `shUSD`.

<figure><img src="/files/Jzw1ODoFz9t6Tn2mF9Tj" alt=""><figcaption><p>Example withdrawal using both claimed and unclaimed shares</p></figcaption></figure>


# Withdrawing

### How to Withdraw

Just like deposits, withdrawals from the vault can be requested anytime. Once again, a user must first choose the network their `shUSD` is held on, and then they can specify the amount they want to withdraw within the withdraw tab. &#x20;

<figure><img src="/files/qh8fhg7rCfhmn7dMQtSm" alt=""><figcaption></figcaption></figure>

Once their withdrawal transaction settles onchain they will have a *pending withdrawal*.  In order for the withdrawal to be officially completed a user must wait for the next [cycle](/sherpaearn-vault/cycles) to be advanced and then they must [finalize](/sherpaearn-vault/withdrawing/finalizing-usdc) it.

### **Withdrawal Flow & Pricing**

The user will receive `USDC` in accordance with the current cycle's `shUSD` price.  Note that redemption pricing for withdrawals is being handled slightly different than the minting pricing of deposits.

<p align="center"><em><mark style="color:$info;background-color:$info;"><code>USDC</code></mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;">received =</mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;"><code>shUSD</code></mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;">withdrawal amount * current shUSD price</mark></em></p>

<mark style="color:$info;">Since the current cycle's</mark> <mark style="color:$info;"></mark><mark style="color:$info;">`shUSD`</mark> <mark style="color:$info;"></mark><mark style="color:$info;">price is used for withdrawals, a user's shUSD shares are burned instantly upon requesting the withdrawal.  The sherpaUSD backing reserves for the withdrawal are also burned instantly (see</mark> [<mark style="color:$info;">sherpaUSD</mark>](/sherpaearn-vault/sherpausd)<mark style="color:$info;">).</mark>

**Example withdrawal scenario:** \
&#x20;  The vault is on cycle #12, and the share price is 1.006964 `USDC` per 1 `shUSD`.

1. The user withdraws their 99,848.629 `shUSD` and waits \~12 hours for the vault to advance.
2. After advancing to cycle #13, the new price is now 1.007703 `USDC` per `shUSD`, and the user can then [finalize](/sherpaearn-vault/withdrawing/finalizing-usdc) their withdrawal.
3. Finalizing can happen during cycle #13 or anytime afterwards for a return of 100,543.97 `USDC`.

   &#x20;     *`shUSD` <mark style="background-color:$info;">withdrawal amount × current cycle's price = amount of</mark> <mark style="background-color:$info;"></mark><mark style="background-color:$info;">`USDC`</mark> <mark style="background-color:$info;"></mark><mark style="background-color:$info;">received</mark>*\
   &#x20;     *<mark style="background-color:$info;">e.g.: 99,848.629 × 1.006964 ≈ 100,543.974</mark> <mark style="background-color:$info;"></mark><mark style="background-color:$info;">`USDC`</mark>*

### Cancelling Withdrawals

If a user deposits and afterwards changes their mind, they can undo their deposit by clicking the 'Cancel' button.  In this scenario, the deposit isn't actually cancelled, but rather converted into a *pending withdrawal* than can be finalized following the vault's advancement to a new cycle.  This cancel mechanism saves the user from having to wait an extra cycle to advance before being able to request a withdrawal.

<figure><img src="/files/wvtu03IbfxOdbBtIfQPq" alt=""><figcaption></figcaption></figure>

### **Withdrawal Limits**

There are no withdrawal limits aside from the sherpaUSD reserve that must be present within the vault on the network that the user wishes to withdraw from.  A user can always bridge to other networks or wait for routine [rebalancing](/sherpaearn-vault/multichain-architecture/rebalancing) to occur.\
\ <br>


# Finalizing USDC

After the cycle advances a user's *pending withdrawal* gets converted into a *unstaked withdrawal.  T*o finalize the withdrawal, a user must then complete the process by clicking the 'Finalize' button:

<figure><img src="/files/S2x8paFL7st4HMlrzUSa" alt=""><figcaption></figcaption></figure>

There is no deadline or time window for finalizing a withdrawal.  The user's `USDC` entitlement will he held  within the vault indefinitely until the user manually finalizes it.&#x20;


# shUSD

### General Utility

An interest-bearing "share" token that automatically captures all yield proceeds accrued by the SherpaEarn vault strategy.  The token is fully transferable between accounts, and ownership of it grants the holder withdrawal rights to underlying `USDC` presently under fund management.

### **Official Vault Pricing**

The initial price (upon vault deployment) of `shUSD` is equal to exactly 1 `USDC`.  This price will change roughly every 24 hours when the cycle gets advanced forward and exact positive yield of the tracked strategy gets passed to the vault contract's state. &#x20;

In effect, all yield gets auto-compounded into the value of `shUSD` and the token grows perpetually in value overtime as the underlying strategy generates returns.  The pricing displayed on the vault overview will always be the redemption price used when processing [withdrawals](/sherpaearn-vault/depositing) out of the vault contracts. The minting price used when processing [deposits](/sherpaearn-vault/depositing) can only be estimated based on prior yield metrics (see [Deposit Flow & Pricing](/sherpaearn-vault/depositing) for specifics)

#### **Formula**

Per cycle `shUSD` price is calculated by:

<p align="center"> <em><mark style="background-color:$info;">total deposited + pending deposits + past cycle accrued yield</mark></em><br><em><mark style="background-color:$info;">----------------------------------------------------------------------</mark></em><br><em><mark style="background-color:$info;">total <code>shUSD</code> shares</mark></em><br><br>P<mark style="color:$info;">rice calculation is immune to enroute crosschain transfers of <code>shUSD</code> and any minting or burning of <code>shUSD</code> triggered by a contract other than the vault contracts themselves.</mark><br></p>

#### **Pricing Divergences**

There may be DEX markets for `shUSD` established by third parties which will deviate from official vault pricing.  This has no impact on the strategy set official vault price, and a user can buy or sell `shUSD` using the vault mechanism at the officially stated price anytime.


# Bridging

### **Usage & Mechanism**

`shUSD` can be freely bridged between any vault integrated networks. The in app bridging utility directly utilizes Chainlink's CCIP for trustless and secure cross-chain transfers of `shUSD`.  Select the source chain you want to send from and the the destination chain you want to send to.  The `shUSD` amount sent on the source will always be the exact `shUSD` amount you will receive on the destination.

<figure><img src="/files/tyRfd3m76LiDMmr83Z8w" alt=""><figcaption></figcaption></figure>

The sent `shUSD` will be burned instantly, and then, after proper finalization by Chainlink DONs, the `shUSD` will be minted into the user's possession on the destination network.

<figure><img src="/files/IMrdUlwUUfhroqSdJBu8" alt=""><figcaption><p>Bridge transaction confirmation.</p></figcaption></figure>

### **Fees**

Users only need to pay network fees and CCIP fees to process their bridge transactions.  No additional fees are added beyond these base infrastructure costs.  All of these costs are paid using the native token of the source chain.

### **Timeframe & Delays**

Bridge transfers should take between 15 and 20 minutes.  Network congestion and other consensus delays related to the Chainlink DON can occur at rare occasions and may need to be manually processed.  Anyone can finalize any stuck CCIP transaction by submitting their source transaction hash into <https://ccip.chain.link/> and manually finalizing it.


# Yields

## Types

Two types of yield are captured via holding `shUSD`.

### **Consistent Yields (Awarded Every Cycle)**

* **`USDC` Yield (Primary)**\
  `USDC` returns are guaranteed for all depositors at a variable rate (typically between 10% and 20% APY) depending on the actual returns produced by the underlying strategy.  This yield gets directly compounded into the `shUSD` token price itself.  The advertised APY displayed is an estimated average of whatever the vault has been earning for the past 7 days.
* **Points Yield (Additional)**\
  Payed out in [*Sherpa Points*](/sherpaearn-vault/launchpool-points-campaign) for the duration of the SherpaEarn launchpool campaig&#x6E;*.*  Points can be tracked on the user's points dashboard, and will be redeemed for `SHERP` at the conclusion of the campaign.  The points reward rate is also variable, and is determined by the amount of `USDC` deposited into the vault and the stage of the campaign.  Early rewards will be around 100% APY and decay overtime to less than 2% APY.

### **Intermittent Yields (Awareded Asyncronously)**

* **Exclusive Incentives (Partnership Based)**\
  Specifically allocated to depositors who use shUSD within specific DeFi apps and lending markets on specific networks.  In time, partnership campaigns will be announced.  The rewards are claimed by users using a thirdparty app such as Merkl.


# Cycles

### Core Purpose

Cycles are approximately 24-hour periods that provide a structured framework for all state changes within the SherpaEarn vault. Think of cycles as the vault's "heartbeat" - each representing one complete sequence of vault operations.  The settling of deposits and withdrawals, the synchronizing of global vault states, and modulating the `shUSD` pricing mechanism at the core of the vault. &#x20;

Fairly paying back `USDC` to prior depositors who want to withdraw and delegating new shares to users who want to deposit is essential.  Such values must be calculated both carefully and economically.  Instead of updating the price of `shUSD` continuously (which would be expensive, complex, and introduce technical vulnerabilities, the vault:

* Collects all deposits and withdrawal requests during a round
* Processes them together when the round ends
* Updates the price based on actual yield earned

This ensures everyone gets the same fair price for the same round.

### Timeframe & Lifespan Limitations

A cycle's duration does not have hardcoded timeframes.  They rely on an offchain keeper bot to maintain a steady rhythm and advance the vault approximately every 24 hours.  Note that there can be yield reporting delays which may interfere with this consistent rhythm for short periods of time.  If one cycle runs longer, the next will be adjusted to run shorter to keep the 24 hour average consistent.  The vault can run for 65,535 cycles (equal to roughly 180 years) before its service life is consumed.

<figure><img src="/files/s6YunTlwdmodmGweARqQ" alt=""><figcaption><p>Progress bar tracking the remaining time until the cycle will advance.</p></figcaption></figure>


# Multichain Architecture

### General

The vault is designed to operate across all integrated blockchain networks simultaneously and synchronously.  It is a dynamic and extensible system which can accommodate new deployments to an already live and functional system.

### **Global State Syncronization**

Contracts stay in sync across all integrated networks at all times using offchain keeper bots.  Same pricing for [shUSD](/sherpaearn-vault/shusd) is guaranteed no matter which network a user deposits into or withdraws from.  This backend framework also ensures that no value can be extracted by malevolent parties seeking to game network lags between the system's distributed parts.

### Safety Frameworks

There is a multi-component safety mechanism in place to keep all vaults coordinated.  Key to this mechanism are the pause functions and the global sync checks.

The pause gets initiated across all networks simultaneously each time the [cycle](/sherpaearn-vault/cycles) is advanced forward and during [rebalancing](/sherpaearn-vault/multichain-architecture/rebalancing).  This maintains tamper resistance from cross-chain price arbitrage and/or other timing attacks.&#x20;

The global sync check verifies that per chain contract states are the same before permitting the vault prices to be updated during the cycle advancement, and then double checks again before getting unpaused.  This process causes a short period of downtime of roughly 2-5 minutes every time the cycle gets advanced forward or rebalancing operations are run.

In order for any of the keeper's returned onchain data to be considered true, 4 out of the 5 RPCs calls must present the same results.  Each of these calls is made using an entirely separate provider's endpoint.  If consensus is not achieved the keeper/operator will rerun the check until sufficient results are achieved.&#x20;

### Fallback Emergency Unpause

In the extremely rare case that the pause function stays paused for an extended period of time there is an emergency unpause mechanism in place. This allows any account to trigger the unpause so long as 24 hours have elapsed since the initial pause was implemented.

### **Network Hierarchy**

The *primary* vault contracts are deployed on Ethereum.  All other networks are deemed *secondary* vaults.  When the [shUSD price](/sherpaearn-vault/shusd) is set on the primary vault's network this is propagated onto all secondary networks instantly (again using the same multi RPC consensus described above.)  All yield accrued by the global strategy will be automatically accounted for by the primary network and [*sherpaUSD*](/sherpaearn-vault/sherpausd) will be minted at 1:1 ratio to exactly represent the newly accrued yield.  Regardless of whether *primary* or *secondary*, all integrated networks are of equal importance as they all play a critical role in setting the global price of `shUSD` within the multichain vault system's state. &#x20;

```
┌──────────────────────────────────────────────────────────────────────┐
│                        SherpaVault System                            │
│                     Multi-Chain Architecture                         │
├──────────────────────────────────────────────────────────────────────┤
│                                                                      │
│         ┌──────────────┐              ┌──────────────┐               │
│         │   Ethereum   │              │     Base     │               │
│         │  (Primary)   │              │  (Secondary) │               │
│         ├──────────────┤              ├──────────────┤               │
│         │ SherpaVault  │              │ SherpaVault  │               │
│         │   (shUSD)    │              │   (shUSD)    │               │
│         ├──────────────┤              ├──────────────┤               │
│         │  SherpaUSD   │              │  SherpaUSD   │               │
│         ├──────────────┤              ├──────────────┤               │
│         │    USDC      │              │    USDC      │               │
│         └──────┬───────┘              └───────┬──────┘               │
│                │                              │                      │
│                │       CCIP Network           │                      │
│                │    (Any chain ↔ Any chain)   │                      │
│                │                              │                      │
│                └──────────┬───────────────┬───┘                      │
│                           │               │                          │
│                     ┌─────▼──────┐        │   ┌ ─ ─ ─ ─ ─ ─ ─ ─ ─    │
│                     │   Monad    │        │      Future Chains   │   │
│                     │(Secondary) │        │   │ (Arbitrum, Bera      │
│                     ├────────────┤        └───►  HyperEVM, etc)  │   │
│                     │SherpaVault │            │                      │
│                     │  (shUSD)   │             ─ ─ ─ ─ ─ ─ ─ ─ ─ ┘   │
│                     ├────────────┤                                   │
│                     │ SherpaUSD  │   Add new chains via:             │
│                     ├────────────┤   docs/ADD_NEW_CHAIN_PIPELINE.md  │
│                     │   USDC     │                                   │
│                     └────────────┘                                   │
│                                                                      │
│  Global State Synchronization (example):                             │
│  • Round 15, Epoch 15 on ALL chains (present and future)             │
│  • Price: 1.05767 USDC/shUSD (same everywhere)                       │
│  • Total: 600k Ethereum, 400k Base, 250k Aritrum = 1.25M USDC global │
│      total staked across all chains                                  │
│  • CCIP enables direct bridging between any connected chain pair     │
│                                                                      │
└──────────────────────────────────────────────────────────────────────┘
```


# Networks

List of current integrated networks / chains for the SherpaEarn yield vault.  The officially supported `USDC` contract addresses accepted for deposits is listed below each network.

### **Primary Network:**&#x20;

* **Ethereum**\
  &#x20;  `USDC` - 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48

### **Secondary Networks:**

* **Base**\
  &#x20;  `USDC` - 0x833589fcd6edb6e08f4c7c32d4f71b54bda02913
* **Monad**\
  &#x20;  `USDC` - 0x754704Bc059F8C67012fEd69BC8A327a5aafb603


# Vault Capacities

SherpaEarn aims to provide responsibly scaled yield strategies with optimized risk/return relationships.

### **Global (Collective) Capacity**

Determined by calculating the max effective capacity of the yield strategies being run.  High quality, small scale strategies that benefit a select group are preferred over lower quality, large scale strategies that end up diluting depositors, introducing increased risk, and/or decreasing returns.  Appropriately sized capacities must be enforced to keep this dynamic in check.

### **Per Chain Capacities**

These are progressively adjusted up or down as a result of both the current yield prospects available and the current demand for depositing on a given network.  Individual chain capacities add up to and cannot collectively exceed the global vault capacity. &#x20;

For example if the global capacity is 10,000,000 `USDC`, then the per chain capacity composition will look something like:

* 5,000,000 `USDC` on Ethereum cap
* 2,000,000 `USDC` on Base cap
* 3,000,000 `USDC` on Monad cap

<figure><img src="/files/TLOZkPN6YIiNFkwL6OrD" alt=""><figcaption><p>Example scenario where no capacity availabe on the selected network.  Users must wait for withdrawals to process or cap to be raised.  Alternately use a different network with space capacity.</p></figcaption></figure>

<figure><img src="/files/3T2KzUksbxD4fvII5O1J" alt=""><figcaption><p>Example scenario where spare capacity available on the selected network.  Users can deposit any amount up to the cap.</p></figcaption></figure>

### Pricing & Yield Parity&#x20;

There are no special yield benefits for depositing on one network over another.  The [multichain synchronization](/sherpaearn-vault/multichain-architecture) ensures that same pricing is guaranteed throughout.  In general, Ethereum will tend to be allocated a higher capacity than other secondary networks due to higher liquidity and DeFi user activity. &#x20;


# Rebalancing

### Resolving Demand vs. Reserve Asymmetry

Given the multichain architecture of the SherpaEarn vault, there may be circumstances where users deposit on one network and withdraw on another network.  If too great of value is moved in the same direction without any counterbalanced activity from other users, then this can temporarily throw the [sherpaUSD](/sherpaearn-vault/sherpausd) reserve out of balance on a given network.  The core reason for this is there will be less `sherpaUSD` reserves in existence on a given network to back the `shUSD` on that same network.

#### Example Scenario

A user wants to withdraw $500,000 worth of `shUSD` from Arbitrum, however this network only has $25,000 in `sherpaUSD` reserves.  In this situation users will be unable to withdraw the full amount on that network but will have several options to choose from:&#x20;

1. Withdraw less `shUSD` on the present chain, and bridge the rest to another chain with more reserves.    (e.g. withdraw only $250,000 from Base and bridge the other $250,000 worth to Ethereum and make a second withdrawal)
2. Bridge to a chain with a larger `sherpaUSD` balance. (bridge all $500,000 worth to Ethereum and withdraw there)
3. Wait for someone else to deposit `USDC` on the chain they wish to withdraw from. (New deposits of atleast $475,000 `USDC` need to happen)
4. Wait for the team to run a routine rebalancing procedure which resolves the asymmetric deposit/withdrawal demand.  (e.g. $500,000 of `sherpaUSD` gets minted on Base, and $500,000 gets burned on Ethereum)

<figure><img src="/files/hITSOjaYUUcCWtId5rZa" alt=""><figcaption><p>Example scenario described above</p></figcaption></figure>

### When Rebalancing Occurs

Team initiated rebalancing will only be run on an as-needed basis.  This is triggered only when significant demand occurs.  If immediate withdrawals are required it is best to use options 1-3 listed above instead of waiting.

Note that there will always be enough global reserves to facilitate a user's withdrawal from someplace in the distributed multichain vault system.


# sherpaUSD

### Purpose & Importance

An internal "wrapper" token that is always 1:1 against `USDC`, representing the vault's backing reserves.  The exact supply of `sherpaUSD` *(plus pending withdrawals)* is equal to the total value locked in the vault (in `USDC` terms).  `SherpaUSD` is used purely as an accounting asset, and does not interface with users under normal contexts.

**Actions & Their Effects On sherpaUSD Supply**

* Depositing `USDC` mints `sherpaUSD` on the same network the user deposited onto and then transfers to the vault contract.
* Withdrawing `USDC` transfers `sherpaUSD` out of the vault contract and burns it on the same network they withdrew from.&#x20;
* Progressing the cycle with positive yield will mint `sherpaUSD` at a quantity equal to the yield earned on only the primary network.
* [Rebalancing](/sherpaearn-vault/multichain-architecture/rebalancing) will burn `sherpaUSD` on the debit network and mint the exact amount on the credit network.


# Fees

### Strategy Performance

SherpaEarn uses a **1.5 and 15** fee structure, this is a reduced version of the traditional "2 and 20" model commonly empoyed for hedge funds and managed strategies.

This consists of two components:

1. **Management Fee:** 1.5% annualized on total assets under management (AUM), accrued daily.
2. **Performance Fee:** 15% of yield earned by the strategy on each cycle.

<p align="center">Both fees are deducted from earned yield only — your principal <code>USDC</code> deposit is never touched. The APY displayed on the main SherpaEarn page reflects the net rate after all fees have been applied.</p>

#### Example of Fee Calculation & Deduction:

Assume 1,000,000.00 USDC in TVL. On cycle (day) 150, the strategy earns 400.00 USDC in yield.

* **Gross Annualized Yield** `(CycleYield × 365) / AUM` `(400.00 × 365) / 1,000,000 = 14.6%`
* **Daily Management Fee** `(AUM × 1.5%) / 365` `(1,000,000 × 0.015) / 365 = 41.10 USDC`
* **Performance Fee** `CycleYield × 15%` `400.00 × 0.15 = 60.00 USDC`
* **Net Annualized Yield (after fees)** `((CycleYield − ManagementFee − PerformanceFee) × 365) / AUM` `((400.00 − 41.10 − 60.00) × 365) / 1,000,000 = 10.9%`

{% hint style="info" %}
No fees are taken from incentive yields such a WMON rewards issued as part of the Monad Momentum Campaign.
{% endhint %}

***

### Bridging

0% fee, aside from the gas costs required to confirm the bridge request and process via Chainlink's DON.  The amount of `shUSD` bridged from the source network will always equal the amount of `shUSD` received on the destination network.


# Risks

### Performance Based Returns

The value of `shUSD` increases anytime profits are generated and decreases anytime losses are incurred.  The collective yield strategy being employed is low risk in nature and seldom produces negative returns, however negative returns are still possible.

Hedgemony runs an advanced risk mitigation engine to capture max upside and limit downside exposure for the underlying `USDC` or equivalently priced dollar denominated stablecoins utilized within the yield strategy.

### Third Party Exposure

This strategy allocates to select third party applications across the DeFi landscape.  Stringent requirements are in place for judging third party applications, including but not limited to comprehensive audits by legitimate security firms, proprietary static analysis of public code bases, historic proof of performance, and sufficient market/liquidity capacities.

Numerous criteria must be met before any protocol may be deemed low enough risk and eligible for inclusion into the SherpaEarn strategy, however there are no 100% guarantees that losses will not occur.  Low risk does not mean zero risk. Only deposit funds you can afford to lose.


# Developers

See here for the audited source code for the sherpaEarn vault:\
<https://github.com/hedgemonyxyz/sherpa-vault-smartcontracts-v1.0>


# Contracts

All relevant contracts for the SherpoEarn yield vault — Expand contract title for more info

## Sherpa **Deployments**

<details>

<summary><strong>SherpaVault / Staked Sherpa USD</strong><br><strong><code>shUSD</code></strong> </summary>

A multi-chain yield vault that issues interest-bearing ERC20 share tokens (shUSD) representing pro-rata ownership of the underlying USDC asset pool. The contract manages round-based deposit/withdrawal cycles with synchronized pricing across all chains, maintaining a critical `accountingSupply` variable that tracks logical share ownership per chain (immune to CCIP bridge fluctuations) to ensure accurate global shUSD price calculations. Primary chain deployments calculate global prices by aggregating state from all chains, while secondary chains apply the propagated price during their cycle rolls.

</details>

* [Ethereum](https://etherscan.io/address/0x96043804D00DCeC238718EEDaD9ac10719778380#code)
* [Base](https://basescan.org/address/0x96043804D00DCeC238718EEDaD9ac10719778380#code)
* [Monad](https://monadvision.com/address/0x96043804D00DCeC238718EEDaD9ac10719778380?tab=Contract\&portfolio=Token)

<details>

<summary><strong>SherpaUSD / USDC Wrapper</strong><br><strong><code>sherpaUSD</code></strong> </summary>

A 1:1 USDC wrapper token that implements epoch-based withdrawal mechanics, providing immediate liquidity for deposits while enforcing a one-epoch delay for withdrawals to ensure the vault has adequate liquidity for operations. The wrapper serves as the intermediary between user USDC deposits and the SherpaVault contract, enabling permissioned minting/burning operations for yield distribution adjustments and cross-chain liquidity rebalancing through operator-controlled `ownerMint()`and `ownerBurn()` functions.

</details>

* [Ethereum](https://etherscan.io/address/0x2E7d6f4ab0f5Ec106CE6985Ca33bd0967412D3e5#code)
* [Base](https://basescan.org/address/0x19F3D065DF4F5296A7b4232C1c88d5994DAa707d#code)
* [Monad](https://monadvision.com/address/0x58fC8a79055519af779308a60A7f1315cAA266Af?tab=Transaction)

<details>

<summary><strong>CCIP Pools</strong></summary>

Chainlink's burn-and-mint token pool contract that enables cross-chain transfers of shUSD by burning tokens on the source chain and minting equivalent amounts on the destination chain, while enforcing rate limits and validating against the Risk Management Network (RMN). Each pool is configured with remote chain mappings via `applyChainUpdates()` and must be registered in the `TokenAdminRegistry` and authorized in the vault's `ccipPools` mapping to execute mint/burn operations. The pool interacts with the CCIP Router's `OnRamp` and `OffRamp` contracts to coordinate token transfers as part of cross-chain messages.

</details>

* [Ethereum](https://etherscan.io/address/0x32b48530f8a2c5CbE79d6b43823bfC9D9584Dbd5#code)
* [Base](https://basescan.org/address/0x498D9AEcF41c440829B7f945224d4ABFDc2544E8#code)
* [Monad](https://monadvision.com/address/0xF9BC71BEDEB6ba90de4cf79f09870d99B0ba2bF0?tab=Contract)

## **Third Party Deployments**

<details>

<summary><strong>CCIP Router</strong></summary>

Chainlink's universal entry point contract for cross-chain messaging that users call via `ccipSend()` to initiate token transfers or arbitrary message passing between supported chains. The Router directs outbound messages to chain-specific `OnRamp` contracts (which handle token pool interactions and emit events for the DON) and receives inbound messages from `OffRamp` contracts (which validate and deliver messages from the DON). While not deployed by Sherpa, the Router is a critical dependency that coordinates the entire CCIP message lifecycle, enabling the vault's burn-and-mint bridging architecture.

</details>

* [Ethereum](https://etherscan.io/address/0x80226fc0Ee2b096224EeAc085Bb9a8cba1146f7D#code)
* [Base](https://basescan.org/address/0x19F3D065DF4F5296A7b4232C1c88d5994DAa707d#code)
* [Monad](https://monadvision.com/address/0x33566fE5976AAa420F3d5C64996641Fc3858CaDB?tab=Contract)


# Audit

A full audit of the [contracts](/sherpaearn-vault/contracts) delineated in these docs has been conducted by Cyfrin.

## Full audit report:

{% file src="/files/4mTbjLQ00iUFZZ52Y9jn" %}

{% file src="/files/Id7EqHQyTBl1kpsTDPx1" %}

<table><thead><tr><th width="644.4609375">Finding</th><th>Status</th></tr></thead><tbody><tr><td>[M-1] Owner can rescue the vault's own share tokens</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[M-2] Owner can chain admin calls for same-block drains</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[M-3] Withdrawals can effectively only happen on the primary chain after any yield has accrued</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[L-1] Misconfigured decimal scale can skew vault accounting</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[L-2] SherpaUSD does not work with fee-on-transfer tokens</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[L-3] Direct amount assignment in SherpaUSD::ownerMint/ownerBurn can break accounting for totalStaked and accountingSupply</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[I-1] SherpaVault::_rollInternal price calculation comment and math inconsistent</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[I-2] SherpaUSD::consumeTotalStakedApproval and SherpaUSD::consumeAccountingApproval callable by anyone</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[I-3] CCIPReceiver dependency not necessary</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[I-4] SherpaVault::redeem naming ambiguous</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[I-5] Some SherpaUSD can never be unstaked due to minimumSupply check</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[I-6] Consider implementing explicit rounding behaviour instead of default round down</td><td><mark style="color:green;">Resolved</mark></td></tr><tr><td>[G-1] Optimize setters by emitting event before state updates</td><td><mark style="color:green;">Resolved</mark></td></tr></tbody></table>

Click [here](https://github.com/Cyfrin/cyfrin-audit-reports/blob/main/reports/2025-11-23-cyfrin-sherpa-v2.0.pdf) to view the report directly in Cyfrin's public repo.<br>


# Launchpool Points Campaign

<figure><img src="/files/MtxAVI7poDNsB9UFskaD" alt=""><figcaption></figcaption></figure>

## Points Basics

#### ***Sherpa Points*****&#x20;are the core incentive of the&#x20;*****SherpaEarn Launchpool Campaign.*****&#x20; Points are awarded to users who deposit into the vault during the campaign time window between Nov 25th, 2025 and April 1st, 2026.**

#### <mark style="background-color:$primary;">We are issuing 10% of the total supply of $SHERP to vault depositors.  This means roughly $1M in montly incentives will be awarded!  Launchpool participants will hold some of the only</mark> [<mark style="background-color:$primary;">unlocked tokens at TGE</mark>](/general/tokenomics) <mark style="background-color:$primary;">— no vesting, no cliffs.</mark>

## Reward Mechanics

An automated snapshot is taken prior to every new 24 hour vault [cycle](/sherpaearn-vault/cycles).  This snapshot checks which users hold `shUSD` (counts both claimed and unclaimed `shUSD`), how much they hold, and their holding duration.  Based on this data, users earn points at a variable rate starting at **100% APY**, which decays weekly as TVL grows and time passes.

* **Initial rate:** 100% APY equals 5.479 points per `USDC` per day (at $50M FDV, approximately $0.0005 per point)
* **Conversion:** Points convert to SHERP tokens at a 10:1 ratio when the campaign ends

{% hint style="info" %}
While snapshots check `shUSD` holdings, points are calculated based on the underlying `USDC` value of your `shUSD`. As vault yield accrues and `shUSD` appreciates, your points earnings multiply accordingly. Earlier participants capture the greatest rewards through this compounding effect.
{% endhint %}

## Bonus Points & Partner Boosts

### **Eligible Parties**

The following users qualify for bonus rewards, which are paid **in addition** to the standard points yield described above:

* **Badge Holders** – Users who earned a badge during the Monad testnet activation campaign
* **Discord Members** – Users with whitelist roles in the Sherpa Discord server
* **Top Traders** – Highest volume traders on [sherpa.trade](https://app.sherpa.trade/lander)
* Partner Token Holders\
  &#x20;Holding the appropriate amount of tokens from the following key partners:
  * **Kintsu:** Hold 10,000 sMON
  * **Magma:** Hold 10,000 gMON
  * **Fastlane:** Hold 10,000 shMON
  * **Curvance:** Hold 10,000 csMON, cgMON, or cshMON\
    (receipt tokens from depositing sMON, gMON, or shMON into Curvance lending markets)
  * **10k Squad:** Hold 5 NFTs

{% hint style="info" %}
Qualifying under any single category makes you eligible. Meeting multiple criteria does not further increase your bonus rewards.&#x20;
{% endhint %}

{% hint style="info" %}
The token requirements above apply ONLY to users qualifying through the Partner Token Holder category.
{% endhint %}

### **Bonus Timeframe Requirements**

Users must deposit within first 4 weeks of the campaign AND hold for the atleast one of the commitment time lengths listed below. (Deposits made after Dec. 15th are not eligible for bonus rewards.)

Each deposit tracks its own independent commitment timer. Withdrawing funds reduces future bonus eligibility but does not forfeit bonuses already earned.

### Bonus Milestones

Eligible participants receive the following bonuses upon reaching commitment milestones:

<table><thead><tr><th width="99.3358154296875">Milestone</th><th width="117.0704345703125">Commitment Length</th><th width="111.3203125">Bonus Per USDC</th><th width="155.4259033203125">Award Per USDC</th><th width="180.12109375">Award Rate (Per USDC Per Day)</th><th>Multiplier</th></tr></thead><tbody><tr><td><mark style="color:$success;">1</mark></td><td><mark style="color:$success;">30 days</mark></td><td>40 points</td><td>$0.02</td><td>1.333 points</td><td>1x</td></tr><tr><td><mark style="color:$success;">2</mark></td><td><mark style="color:$success;">60 days</mark></td><td>90 points</td><td>$0.045</td><td>1.5 points</td><td>1.125x</td></tr><tr><td><mark style="color:$success;">3</mark></td><td><mark style="color:$success;">120 days</mark></td><td>225 points</td><td>$0.1125</td><td>1.875 points</td><td>1.41x</td></tr></tbody></table>

#### **Definitions**

**Commitment Length**\
The total number of days you must hold both `shUSD` and partner tokens (if applicable) to reach a milestone. Days do not need to be consecutive—compliant days accumulate until the requirement is met. Badge holders, Discord members, and top traders do not need to hold partner tokens.

**Bonus Points Per `USDC`**\
The total points awarded per `USDC` deposited when you reach a milestone. This is a one-time bonus, not a daily rate.

**Award Per `USDC`**\
The USD value per `USDC` deposited when you reach a milestone, assuming $50M FDV. This is a one-time bonus, not a daily rate.

**Award Rate**\
The effective daily points rate over the commitment period, calculated as:

$$
award Rate = bonus Points ÷ commitment Length Achieved
$$

**Multiplier**\
The scaling factor between levels, calculated as:

$$
level N multiplier = level N points Per USDC ÷ level 1 points Per USDC
$$

**Total Points Earned Per Level**\
Your total bonus at each milestone, calculated as:

$$
total Points Earned Per Level = USDC value Of ShUSD held \* bonus
$$

**Milestone Bonuses Are Cumulative**\
Bonuses build upon one another. For example, depositing 100 `USDC` and holding for 120 days earns:

* 4,000 points at day 30
* 5,000 additional points at day 60
* 13,500 additional points at day 120
* **Total: 22,500 bonus points**

{% hint style="info" %}
Daily base points scale progressively with `shUSD` value as yield accrues. Milestone bonuses are calculated using the `USDC` value of the deposit at the moment the milestone is reached.
{% endhint %}

### Examples

A few examples of how paints will be awarded to users for participating in the campaign in various ways:

{% tabs %}
{% tab title="# 1" %}

#### **Simple Hold**

* Deposit 1,000 USDC and hold for 30 days → receive 40,000 bonus points
  {% endtab %}

{% tab title="# 2" %}

#### **Multiple Deposits**

* Deposit 1,000 USDC on day 0
* Add another 1,000 USDC on day 15
* First deposit earns 40,000 bonus points on day 30
* Second deposit earns 40,000 bonus points on day 45
  {% endtab %}

{% tab title="#3" %}

#### **Partial Withdrawal**

* Deposit 1,500 USDC on day 0
* Withdraw 500 USDC on day 45
* Hold remaining 1,000 USDC until day 60
* Result: Keep the 40,000 bonus points from milestone 1, but only receive 50,000 bonus points (not 75,000) at milestone 2 based on the reduced 1,000 USDC balance
  {% endtab %}

{% tab title="#4" %}

#### **Non-Consecutive Holding**

* Deposit 1,000 USDC on day 0
* Hold for 20 days (20 compliant days accumulated)
* Withdraw all funds on day 20
* Re-deposit 1,000 USDC on day 40
* Hold for 10 more days (30 compliant days total accumulated by day 50)
* Result: Receive 40,000 bonus points on day 50 when the 30-day commitment requirement is met, even though the holding period was split across two separate deposits
  {% endtab %}
  {% endtabs %}


# Hedgemony

Hedgemony is a DeFi-focused asset manager specializing in asset-swap trading, yield optimization, tokenized yield derivatives, and strategic arbitrage.  Founded in late 2020.

The team specializes in capturing asymmetric opportunities across emerging blockchain ecosystems, with a proven track record in designing cross-protocol strategy frameworks, executing arbitrage across nascent and inefficient markets, and conducting targeted points and airdrop farming programs.

Built on a foundation of disciplined research, Hedgemony operates a thorough risk-analysis engine engineered to identify sustainable yield while avoiding unnecessary leverage or excessive tail exposure. The fund focuses on delivering consistent, stable, and repeatable returns—prioritizing durability over outsized risk-taking.\
\
Info here:\
<https://x.com/hedgemony>


# Intro

A suite of intuitive consumer apps for DeFi and trade automation. Our mission is to simplify on-chain trading, strategy orchestration, and yield exposure. We offer products with varying levels of automation: from straightforward execution tools to intelligent systems that translate user intent into fully automated workflows.

## The product suite

**Swap (Live)**

A meta-aggregator for optimizing multi-token trades. Rebalance a portfolio, consolidate positions, or batch-delegate into asset bundles—all in a few clicks.

**Strategy Lab (Live)**

A graphical, no-code environment for building and executing strategies. Create limit orders, design multi-component DCA schedules, or set up automated hedging without touching smart-contract code.

**Apex (Closed Beta)**

An intent-driven “everything aggregator” for discovering, iterating, and backtesting on-chain strategies. Apex uses AI inference and quantitative modeling to turn natural-language instructions into orchestrated synergy of trade execution and  yield provisioning.

#### **Our Approach**

Sherpa meets users at their level of expertise. Whether you're making simple swaps or orchestrating complex multi-faceted strategies, our tools are purpose-built to reduce overhead, remove learning curves, and alleviate uncertainty across the DeFi landscape.


# Sherpa Accounts

When you first access Sherpa, you'll create a ***Sherpa Account***—a smart contract wallet that enables seamless automation while maintaining complete self-custody.

### What Are Sherpa Accounts?

Sherpa Accounts are built on Gnosis Safe's battle-tested SafeCore SDK, enhanced with tailor built modules that enable sophisticated DeFi automation. Think of it as combining the user experience of a centralized exchange with the security guarantees of self-custody.

**Key benefits:**

{% hint style="info" %}
**Key benefits:**

* **One-click execution** – No repetitive approvals for each transaction
* **Gas-free swaps** – We cover gas costs for standard operations
* **Cross-chain consistency** – Your Sherpa Account maintains the same address across all supported chains
* **Complete control** – You retain full sovereignty over your funds at all times
  {% endhint %}

### Security Model: The OEM

Our ***Onchain Enforcement Mechanism*****&#x20;(OEM)** ensures we can only execute what you explicitly authorize—nothing more.

When you create an order (a swap, limit order, or strategy), you're cryptographically committing to specific parameters: tokens, amounts, slippage limits, and execution conditions. These commitments are structured as Merkle trees and verified on-chain, ensuring:

* **Integrity** – We cannot modify your order parameters
* **Privacy** – Order details remain confidential until execution
* **Efficiency** – Gas-optimized verification process
* **Defined boundaries** – We can only execute within your exact specifications

This architecture provides the convenience of centralized platforms without the custody risk. We handle execution, but the blockchain enforces your permissions.


# Getting Started

Your Sherpa Account deploys identically across all supported chains, giving you a unified experience throughout the DeFi ecosystem.

{% stepper %}
{% step %}
**Create your Sherpa Account**

A one-time setup that deploys your smart contract wallet

<figure><img src="/files/qJlaVdhpDHr9CNkUNOjU" alt=""><figcaption></figcaption></figure>
{% endstep %}

{% step %}
**Fund your account**

Transfer assets from your existing wallet

<figure><img src="/files/DoPlhg0eJT0JoWJNkosq" alt=""><figcaption></figcaption></figure>
{% endstep %}

{% step %}
**Start trading**

Enjoy automated execution with complete peace of mind

<figure><img src="/files/wDDNobw65DLlV1w94A9u" alt=""><figcaption></figcaption></figure>
{% endstep %}
{% endstepper %}


# Swap

<figure><img src="/files/q4T2ywdsDDkz5tFRJbVb" alt=""><figcaption></figcaption></figure>

### General

Swap is a meta-aggregator that makes multi-token trading efficient and intuitive, while ensuring best pricing. Make a basic swap, consolidate positions, or batch-delegate into asset bundles—all in a few clicks. Rather than routing through individual DEXs, Swap integrates with multiple leading aggregators and selects the most favorable execution path across them, giving users access to superior pricing and deeper liquidity without juggling multiple interfaces.

As the foundational execution layer within the Sherpa suite, Swap delivers reliable, gas-efficient trade operations that seamlessly support higher-level automation tools like Strategy Lab and Apex.


# Setting Up Multiswaps

Sell multiple tokens at once by adding another token here.

<figure><img src="/files/Kq9bAsLFSouNFAUQm9jr" alt=""><figcaption></figcaption></figure>

Buy multiple tokens at once by adding another token here.

<figure><img src="/files/iMY7dIbD6r3s4Ycr7nPR" alt=""><figcaption></figcaption></figure>

Drag sliders to control the input amount spent to buy each output.

<figure><img src="/files/psviIK2HEX7NGWgmYgCL" alt=""><figcaption></figcaption></figure>

Lock the exact value on the output slide by clicking the lock icon

<figure><img src="/files/aiupcV1EFCeO7Clb78JU" alt=""><figcaption></figcaption></figure>


# Smart Swaps

Users can conduct gas free, approval-less, swaps via their Sherpa Account directly. &#x20;

<figure><img src="/files/ohP1luQFFnFV2XJ43QGn" alt=""><figcaption><p>In the input token selection menu you can toggle between your Wallet (EOA) and your Sherpa Account.</p></figcaption></figure>

<figure><img src="/files/HbWhfwJzkcE23MlbQLn4" alt=""><figcaption><p>In the output token selection menu you can also toggle between your Wallet (EOA) and your Sherpa Account.</p></figcaption></figure>

When using Sherpa Accounts as the source no approval transactions will be necessary.  Simply fetch a quote and execute the trade in one transaction.

Swapping between a users connected wallet (EOA) and their Sherpa Account is also possible by setting the source and destinations according to their needs.  This effective allows a user to deposit or withdraw assets while they swap.

<figure><img src="/files/JtfbRT775Lb2y52f3WKT" alt=""><figcaption><p>At the bottom of the swap component there is a summary of the transaction path.</p></figcaption></figure>

#### Possible Swap Types

{% tabs %}
{% tab title="EOA → EOA" %}
**Standard wallet to wallet swap**

<figure><img src="/files/yoNsNXUBftjnAB9cs8gP" alt=""><figcaption></figcaption></figure>
{% endtab %}

{% tab title="SA → SA" %}
**Sherpa Account to Sherpa Account swap**

<figure><img src="/files/ktpMyxbfTdSEjHeGemQr" alt=""><figcaption></figcaption></figure>
{% endtab %}

{% tab title="EOA → SA" %}
**Swapping while depositing into your Sherpa Account**

<figure><img src="/files/jxSZMZ0wmwNLGB1jJn2i" alt=""><figcaption></figcaption></figure>
{% endtab %}

{% tab title="SA → EOA" %}
**Swapping while withdrawing into your wallet**

<figure><img src="/files/s1ucdeF5zdF2HzO9DRYP" alt=""><figcaption></figcaption></figure>
{% endtab %}
{% endtabs %}

{% hint style="info" %}
Note that once you add a quantity to the input field it will lock the source until you clear the quantity.
{% endhint %}


# Routing & Quoting

### Quotes

Before you can execute your swap you will first need to get a quote from the aggregator network.

<figure><img src="/files/MaAMCdnxpwZfKesWeGJg" alt=""><figcaption><p>Fetch Quote will open a route summary and quote overview dialog.</p></figcaption></figure>

<figure><img src="/files/8A0emubWbSdEMyI6Zet4" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
The output amount shown before a real quote is requested is an estimation that does not take into account slippage, or market depth.  price impact and volatility occuring while enroute trades are fulfilled will cause divergence from these estimates.
{% endhint %}

### Routes

Each swap quote generated on the Sherpa *Swap* interface will present a dynamic route.  These are based on a diagrammatic sankey standard for mapping transactions complex trade operation in a logical manner.  The amount of hops, pool exposure, volume, and multi input / output details are broken down.

{% tabs %}
{% tab title="Typical Map" %}

<figure><img src="/files/ugsQNeN4431v6WebqMPw" alt=""><figcaption><p>Typical simplified 3 asset input to 3 asset output route.  More complex routes wont genrate route maps.</p></figcaption></figure>
{% endtab %}

{% tab title="Rouet Details" %}

<figure><img src="/files/uj4HOI3RAt5D79Cl2LFc" alt=""><figcaption><p>Hover cursor over each colored band to see the details of which DEX pool it corresponds to.</p></figcaption></figure>
{% endtab %}

{% tab title="Volume Scaling" %}

<figure><img src="/files/9cgdCr0z12p4kYBwcn51" alt=""><figcaption><p>Higher volume legs will be illustrated as the thickest bands.</p></figcaption></figure>
{% endtab %}

{% tab title="Price Impact Warning" %}

<figure><img src="/files/FqCPG54MzJj7fl8hNUCd" alt=""><figcaption><p>Note that multi-swapping with assets of very low liquidity can expose you to critical price impact losses.</p></figcaption></figure>
{% endtab %}
{% endtabs %}


# Safeguards

### Slippage

Definition: Difference between the initial quote and the actual amount received after execution. &#x20;

Mitigation: Users can set the permissible max slippage allowed between the time they agree to place the trade (accept the quote and click execute) and the time when the order actually finalizes onchain.

<figure><img src="/files/Derykc1sHFzHAHskVWoG" alt=""><figcaption><p>Any setting above 3% will add a yellow warning.</p></figcaption></figure>

### Price Impact&#x20;

Definition: Effect your price will have on the price of transacted assets as a result of liquidity limitations.

Mitigation: Users can dial in a permissible maximum price impact to prevent them from accidentally trading via an illiquid market.  Slippage alone wont save someone from making a catastrophic trade, however price configs add market improvement.

<figure><img src="/files/R973KDgPZfQ382AXyncp" alt=""><figcaption><p>Any setting beyond 5% will add a yellow warning.</p></figcaption></figure>

{% hint style="info" %}
Price impact configuration and protection also applies to Strategy Lab orders.
{% endhint %}

### Route Staleness

Aggregators will cache the onchain state to lessen costs.  This is especially noticeable for less traded, low liquidity token pairs which dont frequently experience new pricing every minute (or even every hour). At times these aggregators will inadvertently route through undesirable asset pools which can result in catastrophic outcomes when unchecked.  Sherpa's meta aggregation algorithm senses stale routes and side steps these to save user capital from being squeezed on any such hop through inefficient or outdated markets.


# Strategy Lab

<figure><img src="/files/7iyHbvPOi8F2hqhY3Gd3" alt=""><figcaption></figcaption></figure>

### General

Strategy Lab is a no-code environment for designing, configuring, and executing on-chain strategies. Built for users who want more than simple trade execution, Strategy Lab provides an intuitive graphical interface where you can construct automated behaviors such as limit orders, multi-component DCA schedules, laddered accumulation plans, or downside-protection hedges. Every strategy is built from modular components, enabling you to combine timing logic, price conditions, asset movements, and multi-protocol interactions without touching smart-contract code or writing automation scripts.

Under the hood, Strategy Lab translates these visual configurations into robust, on-chain strategy definitions. Once a strategy is deployed, the system manages execution transparently—handling triggers, monitoring market conditions, and performing actions according to the user’s parameters. The result is a powerful automation layer that supports both routine trades and sophisticated multi-step strategies, allowing users to personalize their trading flows while maintaining full control and on-chain transparency.


# Types of Orders

The Strategy Lab supports 3 types of order currently.  All 3 of these can be combined together into a single strategy, or multiples of each can be added to strategy:

### Market Order

Essentially equivalent to a swap.  Configure as you would the standalone *Swap* product.

### Single Limit Order

Schedules a trade at some point in the future by setting a condition or set of conditions that must be met before the trade gets executed.

Users can place both *normal* limit orders and *stop loss* limit orders.&#x20;

* *Normal Orders* — the standard type of buy order, this is used when the goal is to buy a certain asset below its current market price (most common)
* *Stop Loss Orders* —  used to buy a certain asset above the current price, for example to hedge from downside volatility that may happen in the future (less common)

<figure><img src="/files/mzMWdbiIK7o82mtrfeon" alt=""><figcaption></figcaption></figure>

### DCA (Multi) Limit Order

Scheduling a future sequence of trades at predetermined[ intervals](/sherpa-trade-automation/strategy-lab/intervals) by setting a condition or set of conditions that must be met before the trade gets executed.

These can be composed of both *normal* limit orders, or *stop loss* orders.


# Order Conditions / Triggers

### Price

Price driven orders are the most common type of single limit order.  Users can price their orders using either the input our output asset as the pricing denomination.  Use the quick set ↓ or ↑ arrow buttons to swifty set a price above or below market.  Or enter the exact price value into the field.

<figure><img src="/files/mLoqicLSDWuWmmJlv5Yi" alt=""><figcaption><p>Using the ⇆ button you can toggle the price denomination.<br>Notice how the ≤ and ≥ will change respectively</p></figcaption></figure>

<figure><img src="/files/JiuXm90ozqiwgYTWlxLR" alt=""><figcaption><p>For DCA orders this ⇆ can be found at the top left.</p></figcaption></figure>

{% hint style="info" %}
Price-only DCA orders are impossible since they are chronologically mapped.
{% endhint %}

### Time

In order to set time driven orders that dont include any price conditions, you must specify exact times for all orders.  In the case of a standard single limit order you must set the an exact time in the Timeframes panel.

<figure><img src="/files/giTDmQyCCZuKu2GHZI2Q" alt=""><figcaption><p>Toggle the timeframe selector type to the 'Exact Time' mode.</p></figcaption></figure>

<figure><img src="/files/RP1Lfr0HPli0hWYNJ16e" alt=""><figcaption><p>Specify the exact day and time you would like to schedule your order.</p></figcaption></figure>

In the case of DCA / Multi limit orders you need to configure a 'momentary' expiration type.  Momentary means the order will be scheduled at an exact moment in time.

<figure><img src="/files/YMMNKSJyqBGo5YnGx9eB" alt=""><figcaption><p>In the Timeframes' Expiration Type dropdown menu select 'Momentary' as the expiration type.  </p></figcaption></figure>

### Price and Time Combination

It is possible to incorporate both of the above time and price conditions concurrently for both single limit orders and multi order DCA configurations.  In these case, both onditions must be met in order for the order to trigger.  The most common use for combination conditions is on DCA orders

<figure><img src="/files/2PlfOrEKilIQ0Ih4QVwZ" alt=""><figcaption><p>Example DCA order with price and time conditioning.</p></figcaption></figure>

### Advanced Indicators

A full suite of indicator-driven triggers is under development and will be shipped as part of the Apex intent-driven trading interface. These off-chain data feeds are being integrated into our [OEM](/sherpa-trade-automation/sherpa-accounts) using [Chainlink Functions](https://docs.chain.link/chainlink-functions) for consensus-reinforced reliability and tamper-resistant execution.

* **COT** — CTFC Commitment of Traders report endpoint
* **Skew** — Bid ↔ Ask positioning for sentiment
* **RSI** — Standard relative strength index
* **BBWP** — Bolinger band width percentile
* **SSRI** — Stablecoin supply ratio osscilator
* **MADC** — Moving average convergence / divergence
* **MA & EMA** — Standard moving average crossovers
* **Asset / Index Ratios** — *e.g.* ETH/BTC as indicator for MONAD/USDT
* **Index prices / percentages / levels** — *e.g.* DXY, BTC.D, or TOTAL3-USDC/BTC
* **Composite Position Pricing** — A weighted combination of specific assets based on an entry point\
  e.g. (INDEX:BTCUSD/85130)^0.688 \* (INDEX:ETHUSD/1900)^0.153 \* (INDEX:SOLUSD/126.7)^0.102 \* (INDEX:LINKUSD/13.95)^0.056

pull details from MVP specs

There are several ways to set the active time window for DCA orders. Detailed descriptions of these can be found here. After selecting different options in the dropdown note the different visual representations shown below the Timeframes component.

breakdown the types of conditioning for the various types of orders


# Intervals

### Introduction

The DCA schedules within the Strategy Lab are highly configurable.  The interval framework provides  an adaptive and interactive interface for drafting, modifying, and rehashing your trade ideas. &#x20;

<figure><img src="/files/UfdCzHPbIms3TCMZXeRq" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
Click the 'Help' button in the DCA Configuration module for an in app reference of how intervals work and can be configured to specific ends.
{% endhint %}

### Adding / Removing Intervals

Press the '+ Add One Interval' button to individuall add them.  For automatically adding a set number use the batch add interval module.  The max amount you can add is 59 (totalling 60 max)

<figure><img src="/files/Q4tSl19V8hejkv8fZ7dE" alt=""><figcaption><p>If you already have 30 intervals added, any number you add beyond 30 will revert back to 30 to enforce the max quanity of 60.</p></figcaption></figure>

### Percentages

The amount of input value allocated to an interval is set by adjusting their respective percentages.  This mechanism is equivalent to the output sliders used on the main asset selection module.  Percentages can be explicitly entered and also locked if needed.

<figure><img src="/files/vA68aFjrOig803bR8qC2" alt=""><figcaption></figcaption></figure>

### Defined & Floating Intervals

Once an interval's percentage has been modified (either by individually adjusting it or adding it to a group — see below), then it will be marked with a white body color; this means that it is now *defined*.  This indicates that the percentage is locked and will no longer dynamically adjust around other explicity defined intervals.

<figure><img src="/files/xzIOdxvbOGxVnQXSJH9s" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/h5zIioKhRIVQ6JkAMYJs" alt=""><figcaption></figcaption></figure>

### Breakdown Preview

<figure><img src="/files/A1W04FOM1h5TpYnFm7Zo" alt=""><figcaption><p>Once you add price info for a given interval it will granularly break down the input and output details for you.</p></figcaption></figure>

### Repositioning

<figure><img src="/files/fsv0CpKIjIeYkwnPgVFp" alt=""><figcaption><p>Individual intervals can be dragged and dropped to reconfigure the schedule.</p></figcaption></figure>

### Grouping

Intervals can be grouped together.  this allows a user to set the price or percentage settings only once and propograte these paramteres to every other interval they select.

Apply to All — Propagrates the conditions to all created intervals

Upgroup All — Undoes all grouping to all intervals

Save Applied Grouping — Finalizes the changes that you have made

<figure><img src="/files/4S1UrF8kxem2P4dgaw8g" alt=""><figcaption></figcaption></figure>

### Limitations

* Intervals can only be as small at .1% each. &#x20;
* The value of each order within an interval must be greater than 1$.  This is to ensure trades are actually large enough to be reliably executed,
* Must have atleast 1 interval, and you cannot have more than 60 intervals


# Visual Order Mapping

After adding an order to the Strategy builder that has a price and/or time condition set for it, it will get mapped onto the chart. &#x20;

Orders with a time range will be mapped at blocks:

<figure><img src="/files/1z2QUbPszdNlECliEkhQ" alt=""><figcaption></figcaption></figure>

Order with no time will be mapped as continous zones:

<figure><img src="/files/z31at2Z4fqW2eOIdxsFU" alt=""><figcaption></figcaption></figure>

Order with an exact time scheduled will be represented as a vertical line:

<figure><img src="/files/GfFngA5Y86h2RQqjdPYI" alt=""><figcaption></figcaption></figure>

Stop Loss order (selling on the uncmmon side of the current market price) are represented in red:<br>

<figure><img src="/files/9om57MQ9tipn7Utg0Jeh" alt=""><figcaption></figcaption></figure>


# Apex

<figure><img src="/files/fHWrIKiHOH59Sd0ktosK" alt=""><figcaption></figcaption></figure>

### In Closed Beta

An intent-driven intelligence layer that converts natural-language instructions into fully orchestrated trading and yield-generation strategies. Using AI inference and quantitative modeling, Apex interprets user objectives (“rebalance into stables when volatility spikes,” “rotate 20% into ETH if it breaks above support,” “build a conservative yield basket with weekly auto-compounding,” etc.) and automatically constructs strategies that are both executable and backtestable. This removes the need for manual configuration and allows users to describe what they want, rather than how to implement it.

Once a strategy is generated, Apex provides tools for refining, simulating, and validating the approach before committing it on-chain. Users can iterate on parameters, compare variations, and examine expected performance under different market scenarios. A suite of [advanced Indicators](/sherpa-trade-automation/strategy-lab/order-conditions-triggers) can be injtently woven together for form confluence driven on-chain outcomes. &#x20;

After deployment, Apex will handle ongoing orchestration, seamlessly interfacing with Sherpa’s execution and automation layers while preserving full user sovereignty. It is the highest-level abstraction within the Sherpa ecosystem—an “everything aggregator” that turns intent into structured, actionable strategy design.

Whether you're asking Apex to 'build a conservative DCA into ETH that pauses during high volatility' or simply stating 'I want crypto exposure without getting rekt,' Apex translates abstract intentions into actionable strategies—identifying suitable assets, entry conditions, risk parameters, and yield opportunities. It's a meta-aggregator that searches across execution venues, yield protocols, and market conditions to deliver tailored options that match your goals and risk tolerance."


# Contracts

### **SherpaRouter**

**`0xF37dD3ACbCB7B3BE161F8F67d09273D5Bc09Bd85`**

* [Monad](https://monadvision.com/address/0xF37dD3ACbCB7B3BE161F8F67d09273D5Bc09Bd85?tab=Contract)

### **SherpaSettler**

**`0xb9B0Ff5b2c83d5d8D19257F06718f41065dCF452`**

* [Monad](https://monadvision.com/address/0xb9B0Ff5b2c83d5d8D19257F06718f41065dCF452?tab=Contract)

### **TradingStrategyModule**

**`0x35708afD736873c92134adDBD2c76689993Ab9C4`**

* [Monad](https://monadvision.com/address/0x35708afD736873c92134adDBD2c76689993Ab9C4?tab=Contract)

### **SingleSigActionModule**

**`0x352c308f0CB6f6B9443CBf38b89e62ca7808A61A`**

* [Monad](https://monadvision.com/address/0x352c308f0CB6f6B9443CBf38b89e62ca7808A61A?tab=Contract)

### **ConfigManager**

**`0xFA82B15CcA7668f011171a026895dde0DefCc46b`**

* [Monad](https://monadvision.com/address/0xFA82B15CcA7668f011171a026895dde0DefCc46b?tab=Contract)

{% hint style="info" %}
All contracts exist at identical addresses across every EVM chain.
{% endhint %}


# Tokenomics

The core protocol token for the entire Sherpa ecosystem.  All swapping activity fees, SherpaEarn yield vault performance fees, and trading strategy execution fees contribute to buybacks for the `SHERP` token.

## SHERP Token

### Total Supply — 10 Billion

<figure><img src="/files/K0JrMYOCLO2Wsx50Vgu0" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/u1VHASc3Aic1bNRRyeGK" alt=""><figcaption></figcaption></figure>


# Token Incentive Programs

SHERP token distribution and rewards overview

The Sherpa protocol distributes `SHERP` rewards within variable ranges laid out below for each respective activity within the protocol. The criteria laid out in Dynamic Emissions determines the rate of distribution within these ranges for each epoch:

### Staking SHERP via mSHERP <a href="#staking-sherp-via-msherp" id="staking-sherp-via-msherp"></a>

* 5 - 100% APY on total `mSHERP` amount
* Reward proportion based on stake size vs total pool
* 50% of protocol incentives (1.5B `SHERP`)
* 18-month distribution period
* `SHERP` removed from LP and given to users upon claim

### Active Position Holding <a href="#active-position-holding" id="active-position-holding"></a>

* .2 - 2% APY on entire active Position (USDC value)
* 15% of total protocol incentives (450M `SHERP`)

### Liquidity Provision <a href="#liquidity-provision" id="liquidity-provision"></a>

* `SHERP/WMONAD` or `SHERP/USDC` pairs
* 5 - 200% APY
* Decays over time and based on pool size

### Strategy Usage <a href="#strategy-usage" id="strategy-usage"></a>

* 0% to 10% APY
* Varies based on yield channeling voting and dynamic emissions


# Dynamic Emissions

The amount of `SHERP` / `mSHERP` emitted for stakers and protocol users' rewards is determined by a responsive mechanism. This incorporates a programmatic formula which takes protocol fees, volume, and general market sentiment into account to determine an optimal yield rate for the given epoch. In doing so protocol sustainability and `SHERP` health is preserved.

### Epoch Structure <a href="#epoch-structure" id="epoch-structure"></a>

Epochs occur in weekly intervals. They begin at Monday 00:00:00 UTC and conclude at Sunday 23:59:59UTC. These epoch are concurrent with those used for [Yield Channeling](https://docs.sherpa.trade/docs/yield-channeling).

### Position Rewards <a href="#position-rewards" id="position-rewards"></a>

There is a secondary dynamic emission mechanic that additionally applies to active Positions rewards. This is determined by [Yield Channeling](https://docs.sherpa.trade/docs/yield-channeling).


# Vested Rewards

Rewards allocated to the following protocols incentive programs are subject to a vesting mechanism:

* Staking `SHERP` via the `mSHERP` framework,
* Holding an active Position
* Providing liquidity `SHERP/WMONAD` or `SHERP/USDT`
* Using a strategy which `mSHERP` voters have channeled incentives into

{% hint style="info" %}
NFT staking and Referral rewards are not subject to rewards vesting and are paid out in `SHERP` tokens directly as opposed to `mSHERP`.
{% endhint %}

### Vesting Mechanism <a href="#vesting-mechanism" id="vesting-mechanism"></a>

The rewards vesting mechanisms works as follows:

* Rewards are initially paid out in the form of `mSHERP`, these rewards can be converted into `SHERP` anytime at a ratio determined by the time-lock penalty.
* The time-lock penalty decays until a full 12 month period elapses. At this point `mSHERP` becomes `SHERP` at a 1:1 ratio.
* Time-locked `mSHERP` is considered staked and will continue to accrue additional rewards until the user claims into `SHERP` or after the 12 month time-lock period has elapsed.
* For `SHERP` stakers, their `mSHERP` rewards will be compounded directly into their `mSHERP` staking positions. Note that `mSHERP` earned as rewards will be converted back to `SHERP` in a manner that is separate than the principal `mSHERP` that was minted through `SHERP` staking directly. See Unlocking `mSHERP` for additional details.
* Time-locked `mSHERP` rewards are equivalent to `mSHERP` minted via the `SHERP` staking mechanism in the context of VIP tiers qualification.
* Users can claim their `mSHERP` into `SHERP` at any time, however they will incur conversion penalties of up to a 97% loss (if within 1st month) versus holding for the entire period. The penalty decays using a quadratic formula, therefore the user's rewards become exponentially larger the longer they wait. Full time-lock penalty schedule is below:

| mSHERP Rewards Time-lock (Months) | % Recieved in form of SHERP |
| --------------------------------- | --------------------------- |
| 0                                 | 3                           |
| 1                                 | 4                           |
| 2                                 | 5.5                         |
| 3                                 | 7.5                         |
| 4                                 | 10                          |
| 5                                 | 13.5                        |
| 6                                 | 18                          |
| 7                                 | 24                          |
| 8                                 | 32                          |
| 9                                 | 42                          |
| 10                                | 56.5                        |
| 11                                | 75                          |
| 12                                | 100                         |


# mSHERP

mSHERP lockup mechanism and benefits

At the heart of the Sherpa trading protocol is the `mSHERP` lockup mechanism. With this, users stake `SHERP` for a predetermined amount of time, receiving in return the yield bearing `mSHERP`.

### Core Components <a href="#core-components" id="core-components"></a>

The `mSHERP` system takes its core components from the longstanding and sustainable `veCRV` and `vePENDLE` systems, with the following changes unique to Sherpa:

* `mSHERP` offers a volume multiplier
* `mSherp` holders receive numerous protocol specific benefits based on the amount of time locked and stake value committed, including
  1. Strategy creation rights
  2. Voting weight and fee intake percentages
* mSherp holding tiers are intentionally configured to incentivize large individual holders over sybils.

### Supply and Value <a href="#supply-and-value" id="supply-and-value"></a>

`mSHERP` is transferable but the protocol will not add, maintain, or incorporate any liquidity relating to `mSHERP` into its framework; only `SHERP` is liquid. Its value will therefore be directly determined by `SHERP`. The maximum possible supply of `mSHERP` is 20B tokens. This is exactly two times the total supply of `SHERP`. Although possible, there is a near zero chance this amount of mSHERP will even be minted based on the game theory regarding its [conversion factors](https://docs.sherpa.trade/docs/conversion-factors).

<figure><img src="/files/Dm3BGuQPtdiOxkHczIqn" alt=""><figcaption></figcaption></figure>


# Conversion Factors

SHERP to mSHERP conversion ratios and mechanics

### The SHERP:mSHERP conversion ratio changes depending on two criteria:

#### 1. Length of time-lock <a href="#id-1-length-of-time-lock" id="id-1-length-of-time-lock"></a>

Ranging from a minimum of one day (99% conversion loss) up to a maximum lockup of two years (0% conversion loss)

*E.g.,* Users locking for the full two years receive at least a 1:1 (1x) conversion on their `SHERP` to `mSHERP`. Users locking for the lock minimum of one day receive a conversion ratio of 1:0.01 (0.01x)

#### 2. Value of SHERP stake at time of lockup <a href="#id-2-value-of-sherp-stake-at-time-of-lockup" id="id-2-value-of-sherp-stake-at-time-of-lockup"></a>

Ranging from $10 minimum stake (1x ratio multiple) to a $10M maximum stake (2x ratio multiple)

Users can stake more than 10M$ however no additional value / volume benefits will be granted. This is currently scaled based on USD; however, it may be switched to being scaled by `SHERP` amount (a [governance vote](https://docs.sherpa.trade/docs/governance-vote) will be conducted prior to mainnet launch to determine whether the community prefers USD or `SHERP` weighted volume multipliers)

*E.g.,* As delineated in Chart 1 below, users locking `SHERP` worth at least $10,000 at current market value (not factoring in price impact or slippage) receive a 1:1.41 conversion if locked for the full two years. If their `SHERP` is worth less than $100 then they receive a 1:1 conversion, even for locking the full two years.

#### Key Points <a href="#key-points" id="key-points"></a>

* The time-lock factor is of primary importance for determining the `SHERP` to `mSHERP` conversion. The stake value serves a secondary role and acts as a modifier of the base ratio predetermined by the time-lock length. *I.e.* a user that meets the maximum threshold for time-locking (two years) but only the minimum threshold for stake value ($10) receives a better conversion ratio than a user who meets minimum time-lock and maximum stake value. *E.g.* 10$ locked for two years yields 1:1 ratio while $10,000,000 locked for one day yields 1:0.02 ratio
* Both the time weighted and volume weighted variables shift based on a quadratic formula.
* Upon expiration users receive back the exact amount of `SHERP` originally locked.
* The more `mSHERP` a user holds, the greater the `SHERP` staking rewards received.
* The full range of benefits received by holding certain amounts of `mSHERP` are fully laid out in the [VIP Tier Schedule](https://docs.sherpa.trade/docs/vip-tier-schedule).

<figure><img src="/files/cavuJol3lYjT4nwBMY15" alt=""><figcaption><p>Chart 1 - mHEDGE Multipler Received</p></figcaption></figure>

<figure><img src="/files/ZKpzx7dqrWzy9MNTZdQv" alt=""><figcaption><p>Chart 2 - mHEDGE Quantity Received</p></figcaption></figure>


# VIP Tier Schedule

VIP tier benefits and requirements in Sherpa

Tier requirements and benefits scale progressively (non-linear growth with exponentially increasing steps between tiers).

### Tier Access Methods <a href="#tier-access-methods" id="tier-access-methods"></a>

`mSHERP` holders and Mony Badge NFT holders may obtain the same tier benefits through a minimum capital lock or social task completion, respectively.

### Special Benefits <a href="#special-benefits" id="special-benefits"></a>

Special Multiplier: Users who satisfy both the `mSHERP` and NFT tiers receive a multiplier on their entire `SHERP` yield earnings and voting power.

<figure><img src="/files/485ytQB3fw9SzOG0O7aF" alt=""><figcaption><p>mHEDGE VIP Tier</p></figcaption></figure>

<figure><img src="/files/hc5uZEFAtUVsKnUJsm7Q" alt=""><figcaption><p>Mony Badge NFT VIP Tier</p></figcaption></figure>

<figure><img src="/files/Mhefr0oIt7oLq34GQ2N4" alt=""><figcaption><p>Meet both Mony Badge NFT and mHEDGE Requirements</p></figcaption></figure>


# Unlocking mSHERP

After the time-lock elapses a user can claim their principal `mSHERP`. This will convert it back into `SHERP` at the exact same conversion ratio they originally minted `mSHERP` at.

*E.g.,* If a user a converted 3.5M `SHERP` to 4.94M `mSHERP` at 1:1.41 ratio for locking the full two years, they will receive their original 3.5M `SHERP` principal back.

### Rewards Unlocking <a href="#rewards-unlocking" id="rewards-unlocking"></a>

The `mSHERP` rewards that have been accrued as a result of staking and/or other incentivized protocol activities have separate time-lock requirements than stated above. Specific info about unlocking `mSHERP` rewards can be found in [Vested Rewards](https://docs.sherpa.trade/docs/vested-rewards).

### Impact on Benefits <a href="#impact-on-benefits" id="impact-on-benefits"></a>

All staking dependent VIP tiers (non NFT) will be forfeited once `mSHERP` is claimed, and any further ownership rights on published strategies will be permanently transferred over to the protocol.


# Voting

Voting rights and governance mechanics in Sherpa

`mSHERP` Holders are entitled to vote on both Sherpa protocol and [Foundation](https://docs.sherpa.trade/docs/foundation) related amendments and proposals. They may also submit proposals to the Foundation for deliberation and review. Holders also participate in the delegation of `SHERP` incentives that are paid out to users who adopt popular positions.

{% hint style="info" %}
The weight of a user's vote is directly proportional to the amount of `mSHERP`held.
{% endhint %}


# Yield Channeling

`HEDGE` yield is channeled to all users that have either published or adopted strategies through the Sherpa interface. A weekly vote made by `mHEDGE` holders determines the % of share each Strategy is entitled to for the epoch. All Strategies are entitled to a base yield of 2%; additional incentives are channeled on top of this amount.[<br>](https://app.gitbook.com/o/XyKengYtVnxrbkZ1pmXM/s/KItw8fUJvdsqc23GTKRX/tokenomics/mhedge/voting)


# Governance

Sherpa's decentralized governance system

Community members shape the future of Sherpa's scope and functionality.

### Proposal Types <a href="#proposal-types" id="proposal-types"></a>

Users can submit proposals pertaining to:

* Additional curated protocol integrations
* Adding tokens to the approved list for creating positions and earning yield
* New swapping features, and UI / UX suggestions
* Community events and AMAs
* Risk ratings for strategies


# Fee Structure

Comprehensive overview of Sherpa protocol fees

The following user interactions within the Sherpa protocol incur fees, listed with their respective percentages:

## Swaps <a href="#straight-swaps" id="straight-swaps"></a>

**Single token** swaps — 0.05% fee\
(involving 1 input and 1 output asset)

**Multi token** swaps involving:

* &#x20;3-4 assets — 0.1% fee
* 5-8 assets — 0.15% fee

{% hint style="info" %}
Above asset quantities count both multiple inputs and outputs
{% endhint %}

## Strategy Lab & Apex <a href="#opening-positions" id="opening-positions"></a>

0.2% fee on executed limit orders and DCA schedules. No fee for placing orders.

**Single token** trades — 0.15% fee\
(involving 1 input and 1 output asset)

**Multi token** swaps involving:

* &#x20;3-4 assets — 0.2% fee
* 5-8 assets — 0.3% fee

#### Publishing Strategies <a href="#publishing-strategies" id="publishing-strategies"></a>

No direct cost; however, users must hold `mSHERP` in order to publish Strategies. By holding an increased amount of `mSHERP`, users can create a larger number of Strategies and earn a higher share of fees from adopting users. See VIP Tier Schedule

#### Yield Opportunities <a href="#yield-opportunities" id="yield-opportunities"></a>

No charge to delegate to them aside from the Position creation fee above; however, there is a 5% performance fee deducted from any yield the user earns.

Note:

Once the minimum asset quantity is reached, this percentage is applied to all assets in the swap, *e.g.,* in an eight asset multi-swap, all eight assets are charged a 0.12% fee\
\
\
\
swap 2 assets 0.05% over 3-4 0.1% 5-8 0.15%

strategy trades 2 assets .15% over 3-4 0.3% 5-8 0.45%&#x20;

<br>


# Rebates

See the complete breakdown of fee rebates on the VIP Tier Schedule.\
\
Rebates apply to all protocol-related fees.

Note that further fee rebates are available to those who hold liquid `HEDGE` and pay fees with it directly.<br>


# Mony Badge NFTs

Utility and benefits of Sherpa's Future NFT collection

### Core Function <a href="#core-function" id="core-function"></a>

An express lane to VIP Tiers via social engagement rather than capital requirements.

### Supply and Rarity <a href="#supply-and-rarity" id="supply-and-rarity"></a>

* Limited release is only available pre-launch
* Maximum possible supply of only `4000`
* Each NFT features a one-of-a-kind 3D digital artwork
* All NFTs are equally rare upon minting - rarity is earned by merit instead of by chance

### Tier Progression <a href="#tier-progression" id="tier-progression"></a>

* Holders can progressively upgrade their NFTs and gain access to exclusive VIP tiers that conventionally require locking up large sums of capital
* Moving up tier ranks is achieved by completing "required actions" as detailed in the VIP Tier Schedule

### Staking Benefits <a href="#staking-benefits" id="staking-benefits"></a>

* Dedicated Staking Pool pays `SHERP` rewards at high APR%
* Multiplier on `mSHERP` when voting for Governance proposals and Yield Channeling decisions
* NFT Staker Discord role

### Soulbinding Option <a href="#soulbinding-option" id="soulbinding-option"></a>

* Permanently burn to an address for:
* Top-tier VIP eligibility
* Elite Discord role with VIP alpha channel
* Non-transferable status (reduces sellable supply, supports floor price)

### Additional Features <a href="#additional-features" id="additional-features"></a>

* Royalties from secondary market sales used to buyback and burn `SHERP`, increasing APR% for NFT stakers
* Premier Access to Newly Added Trading Features

<figure><img src="/files/P2Cv0djLXHq93AOlgSkr" alt=""><figcaption></figcaption></figure>


# Partners

**Chainlink**\
BUILD partner; trust minimizing off-chain infra: automation, functions, and CCIP

**Curvance**\
Isolated lending markets

**0x**\
Multichain swap route aggregation

**Fastlane**\
MEV protection, RFQ, and Monad infrastructure&#x20;

**Kintsu**\
LST

**Apriori**\
MEV powered LST

**Magma**\
LST

**Allora**\
Community built ML and predictive analytics network

**Backpack**\
Wallet provider

**Phantom**\
Wallet provider

**Across**\
(future crosschain swap integration)