The perpetual vault is a means of keeping your bond tokens invested in bonds in perpetuity. Read the perpetual vault FAQs.
Investor deposits bond tokens into the vault
In the above diagram, an Investor has some USDC as shown on the left hand side. The Investor purchases some bond TBL-1 as shown in the SETTLE step. The Investor then makes a DEPOSIT step and places their TBL-1 token into the Vault, receiving the receipt token rTBL. The Investor can hold rTBL as long as they please, without having to take any further investment action.
Vault rollovers
The Vault, meanwhile, is busy ensuring that as a bond comes to maturity, it buys more of a new bond. The diagram above shows the vault making ROLLOVER steps, so as TBL-1 reaches maturity, TBL-2 is bought using the proceeds of TBL-1. As TBL-2 reaches maturity, TBL-3 is bought using the proceeds of TBL-2. With each rollover step, more of each bond can be bought, using the profits from the previous bond. These profits are compounded, and the full amount is reinvested with each rollover.
Investor redeems their vault tokens
At some point, the Investor wants to take their profit and so they perform the REDEEM step shown in the diagram. In this step, the Investor gives back some or all of their rTBL tokens, and receives in exchange some of whatever bond happens to be live inside the vault at that time. In the example above they receive TBL-3.
The investor can now redeem their TBL-3 bond for USDC using the bond CLAIM step in Pivio, as they would normally do for a bond.