NAV Calculation

The Net Asset Value (NAV) of Hypurr Vault is calculated hourly by an automated keeper bot that values all vault assets—both liquid HYPE tokens and NFT holdings—to determine a fair price per share. Understanding this calculation helps you make informed investment decisions.

NAV Calculation Formula

Total NAV Formula

Total NAV = (Vault HYPE - Pending Deposits) + Vault Manager HYPE + NFT Portfolio Value

NAV per Share

NAV per Share = (Total NAV × 10¹⁸) ÷ Total Shares Outstanding

The NAV per share determines how many shares you receive when depositing or how much HYPE you receive when redeeming.

Components

Liquid Assets

HYPE tokens held in both the vault contract and vault manager wallet, minus any pending deposits awaiting processing.

NFT Portfolio

All Hypurr NFTs held by the vault manager, valued using our weighted average floor price methodology.

Share Conversion

NAV is expressed in wei (10¹⁸ units per HYPE) for precise calculations when minting or burning shares.

NFT Valuation: Weighted Average Floor Price

The most critical component of NAV calculation is accurately valuing the NFT portfolio. We use a sophisticated weighted average floor price methodology that emphasizes recent market activity.

How It Works

1. Recent Sales Window

The oracle queries the most recent NFT sales from the past 30 days, collecting up to 100 sales transactions for analysis.

2. Linear Decay Weighting

Each sale is assigned a weight based on recency. The most recent sale receives maximum weight, with older sales receiving progressively less weight in a linear decay pattern.

3. Outlier Detection

Statistical analysis identifies and flags potential outliers using standard deviation techniques, ensuring that unusual transactions don't distort the floor price.

4. Weighted Average Calculation

The final floor price is computed as a weighted average of the cleaned dataset, giving you a market-responsive yet stable valuation.

Why This Approach?

• ✓ Market Responsive: Recent sales are weighted more heavily, ensuring NAV reflects current market conditions

• ✓ Manipulation Resistant: Outlier detection prevents single unusual transactions from distorting valuations

• ✓ Transparent: The methodology is deterministic and auditable via on-chain inputsCommit hashes

Confidence Scoring

Every NAV report includes a confidence score (measured in basis points) that indicates the reliability of the valuation. Higher confidence means more recent and liquid price data.

Confidence Factors

Base Confidence

Starting confidence level set by protocol parameters.

Value: Configurable

Recency Penalty

Applied when floor price data is stale. The penalty increases as the most recent sale ages beyond 30 days.

Max Penalty: Up to -3,000 bps

Coverage Penalty

Applied when there are fewer than 10 recent sales, indicating insufficient market activity for robust valuation.

Max Penalty: Up to -1,000 bps

Interpreting Confidence Scores

Low confidence doesn't necessarily mean inaccurate NAV—it indicates that market data is limited or dated. During periods of low confidence:

• NAV calculations may be based on older sales data

• Price discovery might be slower to reflect market changes

• The vault may pause deposits/redemptions if confidence falls below protocol thresholds

NAV Update Process

NAV is calculated and updated automatically by an keeper bot on a regular schedule:

1. Asset Query

Keeper fetches current holdings from the vault contract and vault manager wallet, including both HYPE tokens and NFT inventory.

2. Sales Data Collection

Recent NFT sales are retrieved from marketplace APIs and on-chain transaction logs covering the past 30 days.

3. Floor Price Calculation

Weighted average floor price is computed using the methodology described above, with outlier detection and recency weighting applied.

4. NAV Computation & Validation

Total NAV and per-share values are calculated. The oracle validates that NAV drift is within acceptable bounds compared to the previous report.

5. On-Chain Submission

The NAV report is signed by the keeper wallet and submitted to the vault contract, incrementing the epoch counter and enabling queue processing.

6. Snapshot Storage

The vault stores an epoch snapshot containing NAV per share, confidence, and an inputsCommit hash for auditability of the calculation inputs.

Built-In Safety Mechanisms

🛡️ Drift Bounds

The vault contract enforces maximum drift limits—if NAV changes too dramatically between reports, the submission is rejected to prevent manipulation or errors.

⏱️ Staleness Protection

NAV reports include expiration timestamps. If a report is too old or the vault hasn't received an update within the staleness threshold, deposits and redemptions are paused.

🔐 Signed Reports

All NAV reports must be cryptographically signed by the authorized oracle address. The vault verifies signatures before accepting updates, preventing unauthorized manipulation.

📝 Audit Trail

Each NAV report includes an inputsCommit hash—a cryptographic commitment to the calculation inputs that allows retrospective verification of NAV accuracy.

Ready to Invest in Hypurr Vault?

Learn more about how the vault works or start your first deposit today.

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