Update the vault valuation & settle requests

The first Valuation update

Before updating the valuation of a vault, please read how it works here.

If it is your first valuation update, the input value will be 0, regardless of the fact that there are pending deposit requests. If you don't understand why, please check the documentation on how the Vault Valuation works.

Update the vault valuation

In Lagoon, the valuation of the vault is injected into the smart contract by the Valuation Oracle.

For more security, it is a two-step procedure:

• First, the Valuation Oracle will store its valuation proposal in the vault.

• Then, the curator can accept this valuation by calling either settleDeposit/settleRedeem. Note that they are not exactly equivalent; you can learn more here.

To access the management page, please check this tutorial.

The first valuation injected must be 0. Please read how the valuation works here.

Current vault state

On this page, you can see the current state of your vault.

Current vault state

Simulation mode & propose valuation

By touching the input bar, you will enter the simulation mode. It will display in green the new vault state if the vault valuation was effective.

Vault state with a new valuation

Click Propose new valuation button to initiate the transaction.

Approve valuation & settle

A vault ready to be settled by the curator

After the Valuation Oracle proposed the new valuation, the curator is in a position to validate it.

Let's have a look at the information displayed.

• Total assets and new total assets - here we can see a valuation update from ~2,508,115 USD0++ to ~2,508,330 USD0++.

• Calculated Fees - Since the new valuation is lower than Asset at the high-water mark, no performance fees will be taken, and the high-water mark will remain unchanged. On the other hand, management fees are taken.

• Requests - There for ~30,460 USD0++ ready to be deposited and ~624.94 ustUSR++ (vault shares) ready to be redeemed. To redeem the shares, the vault will use the assets being deposited and those present in the curator's address. That's why the section Underlying to Unwind is empty; there are enough pending deposits to settle the redemptions.

• Settle with deposits button - See next section.

SettleDeposit vs SettleRedeem

Approving the valuation passes by two possible functions: settleDeposit and settleRedeem. Here is a table enumerating each function behavior:

Behavior	settleDeposit	settleRedeem
check for consistency in the valuation updated	✅	✅
take fees	✅	✅
settle deposit requests	✅	❌
try to settle redemption requests	✅	✅

Why does the settleDeposit operation try to settle redemption requests?

That is because the best moment to honor redemption requests is when there is a maximum of underlying in the curator address, it is the case after a settlement of deposits.

Why do the settlement operations only try to settle redemptions?

In order to improve the curator's flexibility, the settlement of redemptions will only happen if there are enough assets in the curator's address. It is the curator's job to make sure it is the case.

Can I update the valuation if there are no deposit/redeem requests?

Yes, you can, everything will work the same.