DeepBook Predict: Vault & Liquidity

The Predict vault holds quote assets, tracks exposure, and acts as the counterparty for all binary and range option mints.

1. Vault Liquidity (PLP Shares)

Liquidity Providers (LPs) supply quote assets to a shared pool and receive PLP shares representing their proportional ownership.

Minting Shares (predict::supply)

• Initial LP: If the vault is empty, PLP shares are minted 1:1 with the supplied quote asset quantity.
• Subsequent LPs: Shares are minted proportionally based on the supplied amount relative to the current net vault value: $$\text{PLP Minted} = \text{Supply Amount} \times \frac{\text{Total PLP Supply}}{\text{Net Vault Value}}$$

Burning Shares & Withdrawing (predict::withdraw)

LP withdrawals burn PLP and return the quote asset.

• Withdrawal Limiter: Withdrawals are blocked if the requested amount would cause remaining vault funds to fall below the current total maximum payout exposure required to cover active option contracts.