Semi-Redeemable Vaults
A Semi-Redeemable Vault is a smart vault that offers conditional redemption rights, implementing financial products that sit between:
Redeemable yield vaults
Non-redeemable funding for closed end funds, companies, and protocols
Comparison
Deposit
Swaps deposit token for vault token at NAV
Swaps deposit token, records redemption price
Redemption
Redeem at NAV
Redeem at original deposit value, or redeem a subset of tokens, or redeem all tokens at NAV
Vesting
None
Assets may "vest" to the vault when a token holder surrenders redemption rights
Transparency
Full NAV reporting
Full NAV + redemption tracking
Transferability
Fully transferable
Fully transferrable. However, transfers may trigger loss of redemption rights
Key Characteristics
Deposit Tracking – Every deposit transaction is individually tracked with its own redemption price and vesting schedule.
Controlled Redemption – Depositors may:
Redeem at their original deposit value, or
Lose redemption rights if they transfer or vest their tokens.
Investment Allocation – Assets are invested by a curator or a startup in defined strategies.
Transparent Reporting – Vaults publish on-chain or off-chain reports detailing:
Net Asset Value (NAV)
Redemption rights
Vested amounts
These controls help us implement DATs, SPACs, Flying ICOs, and Callable Funds with low costs and high liquidity
LIfe Cycle
Depositors retain an option to redeem at the original deposit value.
Redemption rights can expire over time, causing assets to "vest". Vested assets are locked for long-term investment, building value beyond simple yield.
Vault operators can turn on redemption and easily return generated value to depositors.
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