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The Everstrike Perpetual Vault acts as counterparty to a subset of Everstrike Mainnet trades. Its value fluctuates with those trades, with protocol fee deposits, and with monthly reward distributions — giving evUSD holders direct exposure to platform earnings without needing to trade themselves.

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How the Vault Works

The vault sits on the other side of a portion of every Mainnet trade:
  • When traders profit against the vault, the vault pays their profits out of the Vault Balance.
  • When traders lose against the vault, those losses are credited to the Vault Balance.
Everstrike expects the vault to counterparty 80–90% of all trades during Mainnet’s first year of operation. As external market-making activity grows, that share is expected to decrease to 20–30%. These are operating estimates, not contractual commitments. The Everstrike DAO may approve a proposal to phase out the vault at any time. If approved, any accumulated vault funds are distributed to evUSD holders using a 12-month pro-rata formula.

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Monthly Rewards

Rewards are distributed automatically at 00:00 UTC on the first day of each month. No manual claim is required. The reward for any given month is calculated as:
Where:
  • Previous Month’s Vault P/L is the vault’s net profit or loss during the prior calendar month.
  • Vault Distribution Rate is set by the Everstrike DAO. The current rate is 30%.
Only positive monthly P/L produces rewards — if the vault ran a loss, the reward for that month is zero. The undistributed share of any profit (70% at the current rate) is added to the Vault Balance for compounding. Each eligible holder receives a pro-rata share based on their average evUSD balance during the previous calendar month. You must hold at least 10 evUSD throughout the month to receive a distribution.

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evUSD Conversion Rate

The Vault Balance directly influences the price at which you can convert evUSD back to USDC:
Where:
  • Vault Balance is the vault’s cumulative profit since inception.
  • evUSD Supply is the total circulating supply of evUSD.
When the Vault Balance is positive, the min(0, ...) term evaluates to zero and the conversion rate stays at 1 — evUSD trades at its full USDC peg. When the Vault Balance is negative, the rate falls below 1, meaning each evUSD redeems for slightly less than 1 USDC. The rate returns to 1 as soon as the Vault Balance recovers to zero or above.

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Protocol Fees

50% of all protocol fees generated on Everstrike Mainnet are deposited directly into the vault. These deposits increase the Vault Balance, which strengthens the evUSD peg and grows the pool from which monthly rewards are drawn.

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Risks

Vault losses can reduce the evUSD conversion rate below 1, meaning your evUSD may redeem for less than 1 USDC. Monthly rewards can also be zero if the vault ran a loss in the prior month. The Everstrike DAO can change the Vault Distribution Rate at any time, which would affect future reward amounts.

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FAQ

The vault bootstraps liquidity during Everstrike Mainnet’s early operation, when external market makers may not yet provide sufficient depth. It also gives evUSD holders direct exposure to vault earnings, aligning holder incentives with platform health.
No. The vault complements institutional market makers rather than replacing them. As market-making activity grows on the platform, the vault’s share of counterparty activity is expected to decrease. The DAO can vote to phase out the vault entirely once sufficient external liquidity is established.
A negative Vault Balance reduces the evUSD conversion rate below 1 using the formula above. Your evUSD will redeem for slightly less than 1 USDC until the Vault Balance recovers to zero or above. No action is required on your part — the rate adjusts automatically.
Visit the official stats dashboard to monitor the current Vault Balance, the evUSD conversion rate, and the active Vault Distribution Rate.