Allocate / Deallocate Flow

How the Curator moves assets between FundVault and a strategy

Pre-condition (from deposit flow): After users deposit, USDC sits idle in FundVault. balanceOf(fundVault) = 1,000 USDC | PPS = 1.0 | totalSupply = 1,000 shares

① Allocate — FundVault → Strategy

Step	Action	Effect
①	Curator calls `FundVault.allocate(strategy, amount)`	Entry point, checks cap & idle balance
→	`IERC20.safeTransfer(strategy, amount)`	balanceOf(fundVault) ↓
→	Tokens arrive at strategy contract	strategy.totalAssets() ↑
→	`totalAllocated[strategy] += amount`	Cumulative audit counter updated

Examples

Starting: 1,000 USDC idle in FundVault, strategy empty.

Event	balanceOf (fundVault)	strategy .totalAssets()	totalAllocated (cumul.)	idle + deployed
Initial state	1,000	0	0	1,000
allocate(strategy, 800)	200	800	800	1,000
allocate(strategy, 200) deploy remaining idle	0	1,000	1,000	1,000
Yield accrues (+50 USDC) operator updates forDefiValue	0	1,050	1,000	1,050

Note: Total assets in the system (idle + deployed) stays constant during allocate. The Curator simply moves USDC from FundVault into the strategy — no value is created or destroyed.

⚠ Warning — FundNavFeed must be updated after allocate
The NAV formula reads FundNavFeed (an off-chain value) — not strategy.totalAssets() directly. After allocating, the idle balance of FundVault drops but FundNavFeed is not yet updated. If the operator calls updateNav before syncing FundNavFeed to reflect the deployed amount, the NAV will be understated and PPS will drop, falsely signalling a loss.

Rule: always set FundNavFeed ≥ strategy.totalAssets() before or atomically with the next updateNav call.

② Deallocate — Strategy → FundVault

Step	Action	Effect
②	Curator calls `FundVault.deallocate(strategy, amount)`	Entry point
→	`IStrategy(strategy).withdraw(amount)` called internally	Triggers strategy's transfer logic
→	Strategy calls `safeTransfer(fundVault, amount)`	strategy.totalAssets() ↓
→	Tokens arrive back in FundVault	balanceOf(fundVault) ↑
→	`totalDeallocated[strategy] += amount`	Cumulative audit counter updated

Examples

Starting: 200 USDC idle in FundVault, strategy holds 850 USDC (800 deployed + 50 yield).

Event	balanceOf (fundVault)	strategy .totalAssets()	totalDeallocated (cumul.)	idle + deployed
Before deallocate after yield accrued	200	850	0	1,050
deallocate(strategy, 850) full withdrawal	1,050	0	850	1,050
deallocate(strategy, 400) partial withdrawal only	600	450	400	1,050
Strategy suffers loss (−50) then deallocate(strategy, 750)	950	0	750	950 (loss realized)

Note: Total assets after deallocate equals whatever strategy.withdraw() actually returns — which may be more (yield) or less (loss) than the original allocated amount. totalDeallocated records what was returned, not what was originally deployed.