Flow

Implementation Flow

The carry trade strategy follows a systematic flow for managing positions and generating yield.

Deposit Flow

When users deposit xStocks:

1. xStocks transferred to vault

2. Vault mints liquid tokens to user

3. Admin collateralizes xStocks on Kamino

4. Borrows USDC against collateral

5. Bridges USDC to Arbitrum via CCTP

6. Deploys to arbitrage vault

Position Management

The strategy maintains positions across chains:

Solana Side

• xStock collateral in Kamino

• USDC debt position

• Liquid token accounting

Arbitrum Side

• USDC in arbitrage vault

• Active trading positions

• Performance tracking

Performance Realization

Performance is realized each epoch:

1. Calculate arbitrage profits on Arbitrum

2. Bridge profits back to Solana

3. Swap USDC to xStocks via Jupiter

4. Report performance to vault

5. Update exchange rates

Redemption Flow

When users redeem:

1. User burns liquid tokens

2. Creates redemption record

3. Admin closes proportional Arbitrum position

4. Bridges USDC back to Solana

5. Repays Kamino loan

6. Withdraws xStock collateral

7. User claims xStocks after 2 epochs

Epoch Optimization

Only one bridge transaction occurs per epoch. This reduces:

• Bridge fees

• Transaction complexity

• Settlement time

Multiple deposits and redemptions are batched into single bridge operations each epoch.