Managed Pools

<figure> <img src="https://placeholder.com/piron-managed-pool-diagram" alt="Managed Yield Pool Structure"> <figcaption>Illustration of Piron Managed Yield Pool Flow</figcaption> </figure>

Managed Pool Vaults

The Managed Pool Vault is the cornerstone of Piron’s yield strategy. It aggregates investor deposits into a single on-chain vehicle, which is then deployed across carefully selected income-generating assets. Each vault is structured to balance three key objectives: capital preservation, predictable yield, and investor liquidity. Vault shares are represented by ERC-20 tokens that accrue value as the underlying instruments generate yield, giving investors direct, transparent ownership of a slice of the pool.

Unlike single-asset pools, which are tied to one instrument at a time, Managed Pool Vaults can be tailored into different strategies depending on asset class, tenor, and geography:

• Treasury Pools: Short-dated sovereign bills (e.g., 90-, 180-, 360-day maturities) issued by national governments. These serve as the lowest-risk foundation.

• Bond Pools: Sovereign or quasi-sovereign bonds with coupon payments, offering slightly higher yield but longer exposure.

• Corporate Debt Pools: Regulated commercial paper or investment-grade corporate notes. Higher yield but higher credit risk, suitable for managed diversification.

• Emerging Market Pools: Exposure to regional sovereign issuances (e.g., Nigeria, Kenya, Ghana), with higher yield potential but local currency and liquidity risks.

Each vault can be structured as revolving (open-ended, with daily/weekly liquidity buffered by cash reserves) or non-revolving/epoch-based (entry and exit only at fixed intervals, maximizing efficiency for less liquid assets). This flexibility allows Piron to design vaults suited for both retail investors who need more frequent access and institutions that can tolerate longer lockups in exchange for higher yield.

From a portfolio perspective, the vault manager allocates deposits across a ladder of maturities — spreading exposure across short, medium, and long-dated instruments. This laddering ensures that cash is regularly freed up for withdrawals while keeping the majority of capital consistently invested. Matured instruments replenish the liquidity buffer first, with the remainder rolled into new issuances, maintaining a continuous cycle of income generation.

By abstracting away the complexity of tenor selection, currency exposure, and reinvestment, the Managed Pool Vault becomes a simplified access point for investors. Whether the underlying strategy is U.S. Treasury bills, African sovereigns, or corporate commercial paper, investors interact with a single on-chain share token that reflects the net asset value of the pool in real time.

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Vault Structure

The Managed Pool Vault is designed as a modular framework, combining stablecoins, tokenized shares, and real-world asset holdings into a single transparent system. Its structure balances investor accessibility with institutional-grade safeguards:

• Underlying Instruments

  • Treasury Bills, short-dated sovereign bonds, and (optionally) regulated corporate debt instruments.

  • Assets are purchased via regulated counterparties and custodians.

  • Instruments are held by a regulated custodian until maturity or coupon payment date, with proceeds routed back to the vault.

• Liquidity Buffer

  • A portion of the pool is always held in cash or short-term overnight instruments.

  • This ensures withdrawal requests can be met without prematurely liquidating long-dated assets.

  • Buffer levels are dynamically calibrated based on historical redemption flows.

• Tokenized Shares

  • Investors hold ERC-20 vault tokens representing their pro-rata ownership of pool NAV.

  • NAV/share increases as yield accrues from the underlying instruments.

  • Shares are redeemable for stablecoins at the prevailing NAV, subject to lockup or penalty rules.

• Compliance & Access Controls

  • At launch, minting and redemption will be restricted to whitelisted wallets.

  • Transferability will gradually expand as legal frameworks, secondary markets, and cross-chain infrastructure mature.

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Vault Strategy

The strategy for each Managed Pool Vault is guided by Piron’s core objectives: stable yield, continuous liquidity, and conservative risk management.

• Laddered Maturities

  • Capital is spread across multiple durations (e.g., 90, 180, 360 days).

  • This “ladder” creates rolling maturities that recycle into new instruments and service redemptions.

• Automatic Reinvestment

  • Matured instruments first replenish the liquidity buffer.

  • Excess proceeds are then redeployed into new eligible instruments, ensuring uninterrupted yield generation.

• Revolving vs Epoch Structures

  • Revolving Pools: Open entry/exit, supported by liquidity buffers. Best suited for highly liquid sovereign bills.

  • Epoch Pools: Capital locked for a fixed period (e.g., 90d, 180d). Best suited for lower-liquidity assets like corporate paper or emerging market debt.

• Risk Controls

  • Eligible assets limited to sovereigns and investment-grade issuers.

  • Concentration caps prevent overexposure to any one country or counterparty.

  • Weighted Average Maturity (WAM) targets ensure portfolio duration stays within predefined limits.

  • Attestation and NAV publication provide verifiable transparency on asset backing.

• Currency Hedging (Future)

  • For emerging market pools, Piron may implement hedging or stablecoin mapping (e.g., USDC → cNGN for Nigerian bills) to minimize FX exposure for stablecoin investors.