The Flow of Funds

Users enter the system by depositing stablecoins into the Tauri Vault.

Deposits are accepted into the next available deployment window. Capital only becomes active once the relevant vault cycle or epoch begins. This ensures that all capital is deployed according to predefined rules rather than discretionary timing.

Once capital enters an active deployment period, it becomes locked for the duration of that period and begins accruing yield immediately.

Once deposited the funds get send automatically to Tauri which deployes it into real world grain operations. From this point onward, capital is governed by real world operational constraints rather than financial market behavior.

On withdrawal Tauri converts funds back into stablecoins and uses Travessia smart contracts to directly settle withdrawal requests on-chain.

Transaction Execution and Capital Rotation

Tauri deploys capital into short duration spot grain transactions.

These transactions involve purchasing grain from producers, coordinating logistics, managing storage and delivery, and settling sales with buyers. Capital is recycled repeatedly across transactions during a deployment period, maximizing velocity.

FX and Local Deployment

Capital is received in stablecoin form and converted as required to meet local operating needs.

Tauri manages foreign exchange exposure as part of standard execution, ensuring that funds are available in the appropriate currency to pay producers, logistics providers, and counterparties. FX handling is an operational necessity, not a speculative activity.

Risk Management and Hedging

To manage price exposure between purchase and sale, Tauri employs hedging strategies using established futures markets.

Hedging is used to reduce volatility and protect margins during execution. It is not used to increase leverage or amplify returns. This ensures predictable outcomes aligned with fixed settlement timelines.

Profit Realization and Capital Return

As transactions settle, profits are realized alongside principal.

At the end of each deployment period, Tauri returns principal and realized yield back to the protocol within the predefined settlement window. Smart contracts then distribute yield to users on chain according to their positions.