Vault Architecture

How the Project X vault securely stores and manages DeGods NFTs

DeGods in Vault

420

Unique NFTs secured

Total Floor Value

5,230 SOL

Based on current floor price

Average Buy Price

11.2 SOL

Per DeGod NFT

Vault Security

DAO Governed

Proposals: 2/3 High Council submission, 5/7 Council approval

How SOL Raised is Used
The process of acquiring DeGods for the vault

1. SOL Acquisition

When users purchase $XGODS tokens, SOL is sent to the vault's treasury. This SOL is then used to acquire DeGods NFTs from marketplaces like Magic Eden, Tensor, and Hadeswap.

2. NFT Selection

The DAO governance votes on which DeGods to acquire based on rarity, traits, and floor price. This ensures that the vault maintains a diverse and valuable collection of NFTs.

3. Vault Storage

Acquired NFTs are stored in a secure Program Derived Address (PDA) controlled by the vault smart contract. This ensures that NFTs can only be moved according to the rules set by the protocol.

4. SOL Reserve

A portion of the SOL (typically 10-20%) is kept as a reserve to provide liquidity for token redemptions and to take advantage of market opportunities.

Vault PDA & NFT Custody
Technical implementation of the vault architecture

The Project X vault uses a Program Derived Address (PDA) to securely store all DeGods NFTs. This PDA is derived from the vault program's address and a unique seed, ensuring that only the program itself can sign for and authorize transactions involving the NFTs.

Access Logic

The vault program implements strict access control logic that governs how NFTs can be moved:

  • • NFTs can only be withdrawn through governance proposals that pass with a 5-of-7 Councillor supermajority vote, following a 2-of-3 High Councillor consensus for submission.
  • • Temporary access for leasing requires time-locked approvals.
  • • Swaps must follow the protocol's rules for fair exchange.
  • • Broader protocol safeguards, like Council dissolution or impeachment, are managed by the DAO as described in the Governance model.

Security Measures

The vault implements multiple security measures to protect the NFTs:

  • • Time-locked transactions for large withdrawals
  • • Rate limiting to prevent flash loan attacks
  • • Circuit breakers that can pause operations in case of anomalies
  • • Regular security audits by leading firms
Vault Value Calculation
How the value of the vault is determined

The total value of the vault is calculated using a combination of floor price data and individual NFT valuations:

Floor Value Method

The most conservative valuation method, calculated as:

Vault Floor Value = Number of DeGods × Current Floor Price

This method provides a baseline valuation that represents the minimum value of the vault.

Trait-Based Valuation

A more accurate valuation that considers the rarity of traits:

NFT Value = Floor Price × Trait Multiplier

Trait multipliers are derived from market data and updated weekly to reflect current market conditions.

Token Backing Calculation

The backing value per $XGODS token is calculated as:

Token Backing = (Total Vault Value + SOL Reserve) ÷ Circulating Supply

This value is updated in real-time and serves as a reference for the intrinsic value of each token.

Vault Architecture Diagram
Visual representation of the SOL → DeGods → Vault → $XGODS flow
SOL
From Users
DeGods
NFT Acquisition
Vault
Secure Storage
$XGODS
Token Backing
Users
Token Holders
Benefits
Yield, Access, Governance