Skip to main content

Token model

The 4626 protocol uses a three-token system for each creator vault. This document explains the purpose and relationship between these tokens.

Token types​

SymbolFull nameContractStandard
TOKENCreator CoinZora Creator CoinERC-20
▢TOKENVault SharesCreatorOVaultERC-4626
■TOKENWrapped SharesCreatorShareOFTLayerZero OFT

TOKEN (Creator Coin)​

The underlying asset. Created on Zora's bonding curve platform, this is the original creator token that users deposit into the vault.

Properties:

  • Standard ERC-20 token
  • Issued by Zora's Creator Coin contracts
  • Price determined by bonding curve or secondary markets
  • The asset deposited into CreatorOVault

▢TOKEN (Vault Shares)​

Receipt token issued when depositing TOKEN into the vault. Represents proportional ownership of all vault assets, including deployed capital and accumulated yield.

Properties:

  • ERC-4626 compliant vault shares
  • Value increases as vault generates yield
  • Used internally for accounting
  • Can be wrapped into ■TOKEN for trading

Conversion:

1 TOKEN deposited → ~1000 ▢TOKEN (due to 10^3 decimals offset)

The 1000x multiplier is a security feature preventing first-depositor inflation attacks.

■TOKEN (Wrapped Shares)​

The user-facing tradeable token. Wrapping normalizes the 1000x multiplier so users see intuitive amounts.

Properties:

  • LayerZero OFT (Omnichain Fungible Token)
  • Can be transferred cross-chain
  • 6.9% buy fee on DEX purchases
  • Integrated with lottery system
  • Price discovery via CCA auction at launch

Conversion:

1000 ▢TOKEN wrapped → 1 ■TOKEN
1 ■TOKEN unwrapped → 1000 ▢TOKEN

Result: 1 TOKEN deposited ≈ 1 ■TOKEN received (clean UX)

Token flow​

Legend: TOKEN = underlying, ▢ = vault shares, ■ = wrapped OFT

Wrapper normalization​

The vault uses a 10^3 decimals offset for security. The wrapper normalizes this for users:

DirectionConversionExample
Wrap▢TOKEN / 1000 = ■TOKEN5000 ▢AKITA → 5 ■AKITA
Unwrap■TOKEN × 1000 = ▢TOKEN5 ■AKITA → 5000 ▢AKITA

Why the offset exists:

The vault's _decimalsOffset() = 3 creates 1000 "virtual shares" that make first-depositor inflation attacks economically infeasible. Without this, an attacker could manipulate share prices by depositing dust and inflating assets.

User experience:

Users interact primarily with ■TOKEN. When they deposit 100 AKITA, they receive approximately 100 ■AKITA. The underlying ▢AKITA mechanics are abstracted away.

Price relationship​

All three tokens represent claims on the same underlying value:

1 ■TOKEN = 1000 ▢TOKEN = (pricePerShare × 1000) TOKEN

As the vault generates yield, pricePerShare increases:

  • ▢TOKEN value increases relative to TOKEN
  • ■TOKEN value increases proportionally

Example:

  • Initial: 1 ■AKITA ≈ 1 AKITA
  • After 10% yield: 1 ■AKITA ≈ 1.1 AKITA

Symbol conventions​

The ▢ and ■ symbols are standard notation across all creator vaults:

CreatorCreator CoinVault SharesWrapped OFT
AKITAAKITA▢AKITA■AKITA
DEGENDEGEN▢DEGEN■DEGEN
CLANKERCLANKER▢CLANKER■CLANKER

These symbols appear in:

  • Token names and symbols
  • UI displays
  • Documentation
  • Contract events

Contract addresses​

Each creator vault has three token addresses:

// Example for AKITA vault
address TOKEN = 0x...;        // AKITA (Zora Creator Coin)
address VAULT = 0x...;        // CreatorOVault (also ▢AKITA)
address WRAPPER = 0x...;      // CreatorOVaultWrapper
address SHARE_OFT = 0x...;    // CreatorShareOFT (■AKITA)

The vault contract itself is the ▢TOKEN, as ERC-4626 vaults are their own share tokens.

Integration​

DEX integrations: Trade ■TOKEN (has buy fee, lottery, cross-chain).

Yield tracking: Use vault.pricePerShare() (starts at 1e18, increases with yield).

Cross-chain: Only ■TOKEN can bridge via LayerZero. See OFT integration.