Definitions

Vault

Specialized smart contract on the blockchain that manages pooled user funds. Each vault can be connected to various investment strategies, automated by the corresponding strategy contracts. Vaults are compliant to ERC-4626.

Strategy

A strategy within Fathom Vaults is a self-contained smart contract designed to maximize returns from assets held within a vault. Strategy allows seamlessly manage the vault's assets by deploying them into optimized yield-generating opportunities.

Tokenized Strategy

In the Fathom Vaults ecosystem, a Tokenized Strategy is a specialized form of a strategy that doubles as an independent vault. Compliant with the ERC-4626 standard, this setup not only facilitates yield generation but also allows users to directly invest in the strategy. Upon investment, individuals receive shares that represent their stake, enabling a straightforward way to participate in specific investment strategies without intermediaries.

Factory

The Vaults Factory is a core component deployed to streamline the creation of Allocator Vaults under Fathom Governance. This factory ensures that new vaults are deployed in a standardized, efficient, and secure manner, adhering to the latest protocols and specifications set forth by the governance. This setup promotes trust and consistency across all deployments, significantly simplifying the process of launching new investment vehicles on the platform.

Debt

Funds sent from a vault to a strategy intended to generate returns.

Report

A function where a vault accounts for the performance of its strategies, applying any relevant fees, and managing profit distribution.