The Vaultrise Protocol

Vaultrise is a lending protocol on Solana that accepts graduated pump.fun tokens as collateral and issues USDC loans without forcing the holder to sell. It works exclusively with tokens that have graduated from pump.fun and have an active liquidity pool on PumpSwap — real LP is what makes the price oracle and liquidation possible in the first place.

This document describes the MVP as it stands today. The protocol works end-to-end as a real product — lenders supply USDC, borrowers lock tokens and draw USDC, positions are priced and liquidated automatically. A few capabilities that a full build would put on dedicated infrastructure are, for now, handled off-chain; the experience is identical. Build Status (§07) is explicit about what is live versus simulated versus planned.

Graduation used to migrate a token to Raydium at the ~$69K market-cap target. Now that pump.fun runs its own DEX, graduation mints the LP directly on PumpSwap — a token's liquidity lives in a single, predictable place instead of being spread across aggregators.

After graduation, the holder of a successful token sits on a $2,000–$50,000 position they cannot exit without serious price impact. Selling 10% of a position into a $500K-liquidity token dumps the price 15–30%. The holder is stuck: hodl, with no access to liquidity.

Why existing protocols don't solve it

Vaultrise is a pool-based, over-collateralized protocol. Borrowers lock tokens into a program-owned escrow and draw USDC from a shared lending pool funded by lenders, who earn the interest borrowers pay.

Borrower flow

1. 1
   Connect & discover

   Connect a wallet. Vaultrise shows only eligible tokens you hold — graduated with a PumpSwap LP above $50,000.

2. 2
   Choose collateral

   Pick a token and amount and see the max USDC available at up to 20% LTV (25% with $VRISE), plus the resulting health factor and interest rate.

3. 3
   Lock & receive

   Approve the transfer; collateral moves into an escrow and USDC arrives in your wallet from the lending pool in the same transaction.

4. 4
   Stay healthy

   Your health factor is re-checked every 5 minutes against the PumpSwap TWAP.

5. 5
   Repay anytime

   Repay USDC plus accrued interest whenever you like and your collateral returns in the same block. Loans are perpetual while the health factor stays above 1.0.

Lender flow

Lenders deposit USDC and receive gUSDC, a receipt token that continuously appreciates against USDC as borrower interest accrues — there is no rebasing or reward claiming. Withdraw any time there is free liquidity in the pool. Target yield is 8–15% APY, set by a utilization curve.

A spot price on a thin pool is trivially manipulable — one large trade seconds before a snapshot inflates the collateral valuation. A 30-minute time-weighted average forces an attacker to hold the manipulated price for the full window, which makes the attack prohibitively expensive.

In this MVP the TWAP is produced off-chain: a service takes periodic reads of the token's PumpSwap pool, averages them over the 30-minute window, and publishes the price on-chain, where the contract reads it — with a staleness check — to compute LTV and health factors. This off-chain step can later be replaced by direct on-chain cumulative-price reads without changing anything else; the result is identical.

Every position is governed by a single health factor:

Liquidation opens when HF < 1.0. At the 20% max LTV a fresh position sits at HF ≈ 1.4; with the $VRISE 25% LTV it sits at ≈ 1.12 — a deliberate buffer between origination and liquidation.

Liquidation

Liquidation is permissionless — anyone can liquidate a position once its health drops below 1.0, and the 5% liquidator bonus and 3% insurance cut are enforced on-chain regardless of who calls it. In this MVP a liquidation bot does this automatically: it checks every position's health factor every 5 minutes and, when one crosses 1.0, triggers the liquidation and routes the seized collateral through Jupiter for the best sale.

The protocol has two layers: an on-chain program that holds funds and enforces the rules, and off-chain services that feed it prices and act on liquidations.

On-chain (Solana mainnet-beta)

A single program holds the shared USDC reserve and the per-borrower collateral escrows and enforces health factors and liquidation. Interest accrues through a global borrow index, so a position's debt grows automatically over time. Lender deposits are represented by gUSDC, a receipt token whose value is the reserve's USDC divided by the gUSDC supply — it appreciates as interest accrues rather than rebasing. Both classic SPL and Token-2022 collateral are supported, since graduated pump.fun tokens are Token-2022.

Off-chain services

• TWAP aggregator. Reads the PumpSwap pool, averages over the window and publishes the price on-chain every 5 minutes, applying the deviation guards.
• Liquidation bot. Watches every position's health factor on a 5-minute cycle, triggers liquidation when it crosses 1.0, and sells the seized collateral through Jupiter.
• LP-concentration checker. Polls the largest LP holders every ~10 minutes and freezes new positions on any token whose top-3 holders exceed 60% of the pool.
• Alerts & metrics. Health-factor warnings (HF < 1.2) and critical alerts (HF < 1.05) over Telegram/Discord, plus public protocol metrics — TVL, active loans, the liquidation feed and the burn tracker.

Vaultrise is an MVP built to look and behave like a finished protocol. Several capabilities that the full design puts on-chain or on specialized infrastructure are, for now, handled by supporting off-chain services. The on-chain result and the user experience are the same — the difference is internal.

$VRISE is the protocol's operational utility token — not governance, not a reward. It is pre-launch and will launch via a fair launch on pump.fun. Every $VRISE spent on an operation is burned on-chain in the same block and never returns to circulation, and the protocol is fully usable without it.

The six burn operations

Each burn happens on-chain in the same transaction as the operation, so the benefit is atomic with the burn — it is impossible to receive the upgrade without destroying the tokens. After launch there is no mint authority; supply only ever decreases.

Planned tokenomics

Total supply is a fixed 100,000,000 $VRISE, distributed in favour of the open market and locked liquidity over insiders:

A single reference for the numbers that define the protocol.

Vaultrise deliberately limits itself to PumpSwap-eligible tokens. That forgoes a large share of potential demand, but it is what keeps the oracle honest, liquidation possible and the protocol solvent.