General share price calculation rules

CORE CALCULATION ARCHITECTURE

The foundation of asset calculation begins with the _getGrossTotalAssets() function, which aggregates three primary components. The first component is the direct vault balance, representing the raw underlying asset balance held directly in the vault contract, retrieved via IERC20(asset()).balanceOf(address(this)) and representing immediately available liquidity. The second component encompasses market-specific assets, which represent the total value of all positions across integrated DeFi protocols, calculated through PlasmaVaultLib.getTotalAssetsInAllMarkets() where each market maintains its own balance tracking via specialized Balance Fuses. The third component, which is optional, includes reward claims representing the value of claimable rewards from integrated protocols, retrieved via IRewardsClaimManager(rewardsClaimManagerAddress).balanceOf() and only included if a rewards claim manager is configured.

All asset valuations are standardized to USD using a hierarchical price oracle system. The primary layer consists of the PriceOracleMiddlewareManager, which manages custom price feed sources for specific assets, provides fallback to PriceOracleMiddleware when custom feeds are unavailable, converts all prices to standardized 18-decimal USD format, and implements gas-efficient price caching mechanisms. The secondary layer is the PriceOracleMiddleware, which handles Chainlink Feed Registry integration, provides fallback pricing for assets without custom feeds, ensures consistent 18-decimal USD price format, and validates price feed data integrity and freshness. The price conversion process converts all external prices to 18-decimal USD using IporMath.convertToWad(), maintains precision through standardized decimal handling, and implements price validation to prevent zero or negative values.

Each integrated DeFi protocol is represented by a unique market ID with dedicated balance tracking through the Balance Fuse system. Each market employs a specialized Balance Fuse contract such as Erc4626BalanceFuse, which calculates market-specific asset values in USD, implements protocol-specific balance calculation logic, and returns standardized 18-decimal USD values. Markets are defined by protocol-specific identifiers called substrates, which include asset addresses, pool identifiers, and protocol parameters, enabling complex multi-asset market structures and supporting various DeFi protocol types including lending, AMMs, and yield farming. The balance update mechanism updates market balances through the updateMarketsBalances() function, implements dependency resolution for interconnected markets, ensures atomic balance updates across related protocols, and calculates deltas to minimize storage operations.

GAS OPTIMIZATION AND EFFICIENCY

The system implements several mechanisms to reduce gas consumption and improve efficiency. Market balance storage ensures that market values are stored in underlying token amounts rather than USD, with price conversions only occurring during balance updates, thereby reducing gas costs for simple operations like deposits and withdrawals. Batch market updates allow multiple market balances to be updated in a single transaction, with dependency resolution preventing redundant calculations and delta-based updates minimizing storage writes. The delegatecall pattern enables Balance Fuses to use delegatecall for gas-efficient execution, eliminating external contract call overhead while maintaining security through controlled execution context.

All market values are ultimately converted to the vault's underlying asset denomination through a precise conversion process. The USD to underlying asset conversion divides market USD values by the underlying asset USD price using the formula (USD_Value * 10^18) / underlying_asset_price, maintaining precision through careful decimal handling. Decimal standardization ensures that all calculations use consistent decimal precision, with the underlying asset decimals offset applied (DECIMALS_OFFSET = 2) to ensure compatibility across different asset types.

BALANCE UPDATE WORKFLOW

The complete balance update process follows a carefully orchestrated sequence. Market dependency resolution identifies all markets requiring balance updates, resolves market dependencies to ensure proper update order, and prevents circular dependency issues. Price oracle integration retrieves the current USD price for the underlying asset, validates price feed data integrity, and handles price feed failures gracefully. Balance Fuse execution runs each market's Balance Fuse via delegatecall, collects USD-denominated market values, and implements protocol-specific calculation logic. The final conversion and storage phase converts USD values to underlying asset amounts, updates market-specific storage, calculates and applies total asset deltas, and triggers asset distribution protection checks.

SECURITY AND VALIDATION

The system implements multiple security layers to ensure data integrity and system reliability. Price validation ensures that all prices are validated for positive values, includes price feed staleness checks, and provides fallback mechanisms for price feed failures. Balance integrity is maintained through asset distribution protection limits, market balance consistency checks, and dependency validation. Access control is enforced through role-based access to balance update functions, controlled execution context for delegatecalls, and comprehensive audit trails through event emissions.