# Overview

## What is rHYPURR?

rHYPURR is an actively managed NFT index token that provides diversified exposure to the Hypurr NFT ecosystem on HyperEVM. Similar to an ETF, the vault holds a professionally managed portfolio of Hypurr NFTs, seeking value appreciation through strategic trading and portfolio optimization.

| Backing Asset  | WHYPE         |
| -------------- | ------------- |
| Strategy Type  | NFT Portfolio |
| Token Standard | ERC-4626      |

## How rHYPURR Works

rHYPURR operates as a professionally managed NFT fund with transparent on-chain reporting:

### 🏦 Vault Custodies NFTs

The vault manager (MPC wallet) holds a diversified portfolio of Hypurr NFTs. These NFTs are the core assets backing the vault's value.

### 📊 NAV Calculated Regularly

An keeper bot continuously monitors NFT floor prices using recent sales data. It calculates the total value of all vault assets and publishes Net Asset Value (NAV) reports on-chain.

### 💱 Users Deposit/Redeem at NAV

You deposit WHYPE tokens to mint rHYPURR shares or redeem shares to receive WHYPE back. All transactions are processed at the fair NAV price determined by the keeper using our proprietary valuation model.

### 📈 Portfolio Value Appreciation

The vault manager actively trades NFTs to optimize portfolio value. As the NFT collection appreciates and the strategy captures trading gains, the NAV per share increases.

## Key Features

### 🔒 Multi-Signature Security

Assets are held in a secure MPC (Multi-Party Computation) wallet, requiring consensus for all transactions.

### 🎯 Transparent Valuation

NAV is calculated using objective floor price data from recent Hypurr NFT sales, ensuring fair and verifiable pricing.

### ⚖️ Fair Price Discovery

Asynchronous queues ensure all users get NAV-based pricing without front-running or manipulation.

### 🔄 Liquidity Management

The vault maintains WHYPE reserves for redemptions while maximizing capital efficiency through automated liquidity sweeps.

## Managed Vault Architecture

rHYPURR separates the vault contract from the vault manager contract to enhance security and flexibility:

| Vault Contract                        | Vault Manager Contract             |
| ------------------------------------- | ---------------------------------- |
| Holds user shares (ERC-20 tokens)     | Holds and manages NFT portfolio    |
| Manages deposit/redemption queues     | Executes buy/sell operations       |
| Enforces protocol rules and limits    | Maintains working capital reserves |
| Calculates NAV and processes requests | Implements trading strategy logic  |

## Investment Strategy

The rHYPURR vault employs a sophisticated approach to NFT portfolio management:

### Automated Liquidity Management

When WHYPE reserves exceed a configured threshold, excess liquidity is automatically swept to the vault manager wallet. This capital is then deployed to purchase Hypurr NFTs from OpenSea when sufficient liquidity has accumulated, expanding the portfolio.

### Strategic NFT Trading

The vault manager actively "trades up" by selling lower-value NFTs and acquiring higher-value ones based on proprietary valuation models. This optimization strategy aims to improve the quality and value of the portfolio over time.

### Liquidity Generation

When large redemptions require additional liquidity, the vault manager can strategically sell NFTs from the treasury to generate WHYPE, ensuring users can exit their positions while maintaining portfolio quality.

### Portfolio Diversification

Holding a basket of Hypurr NFTs spreads risk across the collection, reducing exposure to single-asset volatility while maintaining broad exposure to the ecosystem.

### Long-Term Value Accrual

Benefiting from the overall growth of the Hypurr NFT ecosystem as the collection matures and gains adoption, similar to how an index fund benefits from market growth.

### Airdrop Benefits

Holders receive a proportional share of any airdrops received by the vault treasury, adding additional value beyond the core NFT strategy.

## Risk Considerations

Like all investments, rHYPURR carries risks. Understanding these risks is essential:

{% hint style="warning" %}
**NFT Market Volatility**

NFT prices can be highly volatile. The vault's NAV fluctuates with floor price movements.
{% endhint %}

{% hint style="warning" %}
**Liquidity Risk**

In extreme market conditions, redemptions may be delayed or partially fulfilled due to limited vault liquidity.
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**Smart Contract Risk**

While audited, smart contracts may contain undiscovered vulnerabilities.
{% endhint %}

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**Keeper Dependency**

NAV calculations rely on accurate data from the keeper bot and NFT marketplaces.
{% endhint %}

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**Strategy Risk**

The vault's trading strategy may not always be profitable, especially in bear markets.
{% endhint %}

{% hint style="danger" %}
Only invest what you can afford to lose. Past performance does not guarantee future results.
{% endhint %}

## Permissioned Roles

rHYPURR is managed by multiple specialized roles to ensure security and operational efficiency:

### Admin Role

Controls vault settings including caps, thresholds, and emergency pause functionality.

### Treasury Role

Manages fee configuration and withdrawal of protocol revenue.

### Keeper Role

Authorized to publish NAV reports and process deposit/redemption queues.

### Vault Manager

MPC wallet that custodies NFTs and executes the trading strategy.

## Technical Specifications

| Parameter            | Value                      |
| -------------------- | -------------------------- |
| Network              | HyperEVM                   |
| Token Standard       | ERC-20 (ERC-4626 inspired) |
| Backing Asset        | WHYPE (Wrapped HYPE)       |
| Vault Assets         | Hypurr NFT Collection      |
| NAV Update Frequency | \~1 hour                   |
| Queue Processing     | Asynchronous (FIFO)        |
| Deposit Fee          | 0.3%                       |
| Redemption Fee       | 0.5%                       |
| Deposit Cap          | 2,000 WHYPE                |
| Minimum Deposit      | 0.1 WHYPE                  |
| Minimum Redemption   | 1 rHYPURR                  |
| NAV Drift Limit      | 10%                        |
| Max NAV Staleness    | 2 hours                    |

## Ready to Invest in rHYPURR?

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

* [How to Deposit/Redeem](https://docs.rip.xyz/hypurr-vault/deposit-redemption)
* [Understand NAV](https://docs.rip.xyz/hypurr-vault/nav-calculation)
* [Open Vault](https://www.rip.xyz/rhypurr)