> For the complete documentation index, see [llms.txt](https://docs.wandfi.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wandfi.io/products/ip-vault.md).

# IP-Vault

On Story protocol, each IP Asset has an IP Royalty Vault, which acts as a pool for all monetary inflows related to an IP Asset's commercial exploration or from minting licenses. Royalty Tokens can be used to claim Revenue Tokens. Wand IP-Vault is a tailor-made structured product for Story Protocol Royalty Tokens.

IP-Vault is a Pendle-like protocol. Users deposit Royalty Tokens and receive Principal Tokens (PT) and Yield Tokens (YT). Holding PT signifies ownership of the principal, while YT represents all real-time yields from the underlying assets. Unlike Pendle, It is perpetual, allowing users to hold PT or YT indefinitely without expiration.

The IP-Vaults will be divided into epochs based on a fixed time cycle, with each subsequent epoch being generated only after the previous one ends. PT remains unchanged across different epochs. However, each epoch will have a uniquely numbered YT corresponding to that period.

Let's use USDC as a Royalty Token example to explain the working mechanism of the IP-Vault.

<figure><img src="/files/AbS2Blf370ArRwtzWrBu" alt=""><figcaption></figcaption></figure>

When users deposit USDC into the B-Vault, they receive pUSDC at a 1:1 ratio. pUSDC is a rebasable token that provides interest earnings in USDC. At the same time, yUSDC is also generated at a 1:1 ratio and temporarily held in the contract. Users need to pay USDC to purchase a certain amount of yUSDC. The USDC used to purchase yUSDC serves as the interest source for pUSDC and is distributed to pUSDC holders. Additionally, the IP-Vault earns Revenue Tokens, which are then distributed to yUSDC buyers.


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