Virtual Liquidity Vaults (VLV)
Secure Asset Custody Architecture
Oraclyst operates on a "Hub and Spoke" liquidity model. The user interacts only with the Hub (Base Network), while the protocol manages the Spokes (Polygon, Kalshi, etc.). The Virtual Liquidity Vault (VLV) is the smart contract infrastructure that secures this process.
Architecture Components
User Vault (Layer 2): This is a non-custodial smart contract on the Base network where user funds (USDC) are deposited. Users retain full control over their SOTs and can withdraw their idle capital at any time.
Proxy Wallets (Layer 1 / Sidechains):
Polygon Proxy: A smart contract wallet controlled by the Oraclyst Protocol that holds assets on Polymarket.
Kalshi Omnibus: An institutional account structure that legally holds USD and positions on Kalshi on behalf of the protocol.
Solvency Mechanism: The VLV ensures strict 1:1 backing. For every 1 SOT minted on Base, there must be exactly 1 corresponding share held in a Proxy Wallet.
Real-time Auditing: Chainlink Proof of Reserve (PoR) feeds are used to monitor the balance of the Proxy Wallets, ensuring that the protocol is never under-collateralized.
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