# Introduction

Users deposit assets (USDC, SPYx, JitoSOL...) in PiggyBank's vaults, which are then allocated to a range of strategies (funding rate arbitrage, liquidity providing, etc...). A yield bearing token is minted to the depositor, representing their allocation in the corresponding vault (e.g. pbUSDC for USDC). That token can later be burnt to redeem the underlying token and the performance generated.

This liquid token mechanism allows continuous compounding of strategy exposure, instant liquidity on a secondary market and more advance DeFi integrations like *yield multiplication* and *fixed yield*.

## Vaults

PiggyBank provides two categories of strategy. Stable-coin yield and extra yield on top of other assets exposure. Both are accessible through our own Solana vault infrastructure specifically tailored for these strategies needs. Compatible with both Legacy and Token2022 standards, Piggy vaults support stock split, dividend distributions, transfer hook and all features necessary for RWA underlying tokens in a compliant framework. 

Vaults operate on an epoch-based system in which Net Asset Value (NAV) is reported every 48 hours. Withdrawal management follows the same epoch schedule. Upon submitting a redemption request, the underlying asset becomes claimable after two epochs have elapsed.

## Core Principles

PiggyBank is built around: transparency, risk management, and resilient infrastructure. The team has strong expertise in blockchain, financial engineering, and quantitative research to deliver a protocol offering maximized capital efficiency and robustness.