Basket shares
What a basket share represents, how launch weights work, and what stays fixed after creation.
A basket share is an ERC-20 token representing a proportional interest in a vault’s accounted constituent reserves. A community basket holds between two and ten distinct tokens. Holders can transfer shares, add proportional backing to mint more, or redeem shares into claims on the underlying tokens.
One share is a denomination
Every basket starts with one gross share, represented by 1e18 raw units because shares have 18 decimals. The initial funding determines what that share is backed by. One share has no fixed ETH value or dollar peg.
If the basket charges an issuance fee, the initial share is split between the chosen receiver and the fee recipient. At a 1% issuance fee, they receive 0.99 and 0.01 shares respectively. Both portions are backed by the initial deposit. See creator fees.
Launch targets and actual holdings
Creators choose positive target weights totaling 100%, expressed on-chain as 10,000 basis points. For an ETH-funded launch, those weights allocate the ETH spent acquiring each constituent. Swap fees and execution prices determine the actual quantities received.
For a direct token-funded launch, the creator supplies the constituent quantities themselves. The contract does not use an oracle to verify that their market values match the declared weights.
After launch, actual reserve quantities determine later deposits and withdrawals. A community basket does not trade back to its target weights. Market-price changes can therefore change its value weights over time. Creating liquidity pools or trading its shares does not rebalance the vault.
What stays fixed
The community vault has no owner, upgrade mechanism, asset-sweep function, or portfolio-trading entry point. Its constituent list, declared weights, share name and symbol, metadata URI, issuance-fee rate, and fee recipient have no update entry points.
The creator’s recorded address identifies who launched the basket. It does not give that wallet control over another holder’s shares or the vault’s backing. Official managed baskets use a separate contract and permission model.
Three ways shares move
| Action | Share supply | Accounted vault reserves |
|---|---|---|
| Mint with new backing | Increases | Increase by the required deposits |
| Request redemption | Decreases | Move from active reserves into withdrawal claims |
| Transfer or pool swap | Unchanged | Unchanged |
Shares held by a liquidity pool retain the same proportional backing as shares held in a wallet. A pool’s trading price can differ from the value obtainable by redeeming the underlying assets. Read liquidity pools for the distinction.
The vault uses a custom multi-asset interface; it is not an ERC-4626 vault. Integrations should use its own previews and read its reserve accounting.