> For the complete documentation index, see [llms.txt](https://zeit-1.gitbook.io/zeit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://zeit-1.gitbook.io/zeit/get-started/buy-sell-ppvs.md).

# Buy / Sell PPVs

PPV shares are standard **ERC‑20 tokens**. They can be transferred, traded, and (where supported by third parties) used as collateral like other ERC‑20 assets.

This page explains:

* where PPVs can be traded,
* the difference between **secondary market trading** and **minting/redemption** via rolls,
* how to think about **market price vs. NAV (PPS)**,
* and why secondary markets can matter when deposits/withdrawals are not instantaneous.

***

### Where to trade PPV tokens

PPVs can be traded on any venue that supports the token and has liquidity.

* **Zeit UI**
  * Primary place to discover vaults and access available trading routes.
* **DEXs**
  * PPVs may be listed in AMM pools (e.g., PPV/USDC.e) or routed through aggregators.
* **Other secondary markets**
  * Any wallet-integrated swap, aggregator, or marketplace that supports the token contract.

> Availability depends on listings and liquidity. Not every PPV will be liquid on every venue.

***

### Two ways to get exposure

PPVs can be acquired (or exited) in two different ways:

#### 1) Secondary market (buy/sell existing shares)

* You buy PPV tokens from another holder (DEX, aggregator, or any secondary venue).
* Settlement is **immediate** (subject to the venue and chain confirmation).
* Price is set by market liquidity (orderbook/AMM), not directly by PPS.

#### 2) Primary vault flow (mint/redeem via rolls)

* **Mint:** deposit collateral → receive newly minted PPV shares at the next roll PPS.
* **Redeem:** submit withdrawal → shares are burned at a roll PPS and collateral is returned when processed.
* Timing is **not instant**:
  * deposits are processed on a **24h roll** cycle,
  * withdrawals are **vault-configurable** (minimum typically **24h**, can be longer).

***

### Market price vs. NAV (PPS)

#### PPS / NAV per share

* **PPS** (price per share) is the vault’s accounting price:
  * `PPS = NAV ÷ total shares`
* PPS is used for minting/burning shares during rolls.

#### Market price

* Market price is the price you can trade at on a secondary venue.
* It can differ from PPS.

#### Premium / discount

* **Premium:** `market price > PPS`
* **Discount:** `market price < PPS`

Premiums/discounts can occur for several reasons:

* **Liquidity and immediacy:** secondary markets give immediate entry/exit, while mint/redeem is roll-based.
* **Withdrawal delay:** if redemptions take days (vault-configurable), market price may trade below PPS to reflect time/risk.
* **Price impact expectations:** PPS is based on the vault’s valuation methodology at roll; secondary markets may price in expected slippage or future PnL before the next roll.
* **Supply/demand:** large sellers, limited LPs, or concentrated holders can temporarily push price away from PPS.

***

### Why secondary markets are useful when rolls are not instant

Because deposits and withdrawals are processed in batches, the secondary market can be used to:

* **Enter earlier**
  * If you want exposure now, buying PPVs on the secondary market can be faster than waiting for the next deposit roll.
* **Exit earlier**
  * Selling PPVs can reduce exposure immediately rather than waiting for the withdrawal queue and position unwinds.
* **Reduce operational risk**
  * Secondary liquidity can be used to adjust exposure without relying on the vault’s next processing window.

***

### Premium/discount “arbitrage” (not risk-free)

Roll-based minting/redemption creates a natural basis for premium/discount opportunities.

Common patterns:

#### Discount capture (buy → redeem later)

If `market price < PPS`, a buyer may purchase PPVs at a discount and later submit a withdrawal to redeem closer to PPS.

Key constraints / risks:

* Redemption is **not immediate** (withdrawal timing depends on vault configuration).
* PPS can change during the waiting period.
* Execution and liquidity constraints can affect how quickly collateral is freed.
* Any vault fees and valuation rules applied at roll affect realized outcomes.

#### Premium capture (mint → sell on secondary)

If `market price > expected PPS`, a depositor may mint at the next roll PPS and sell shares on secondary markets at a premium.

Key constraints / risks:

* Deposits settle only at the **next roll** (≥ 24h).
* Market price may move before shares are minted.
* Secondary liquidity may be insufficient to exit size at the quoted premium.

> In practice, premium/discount trades behave more like **closed-end fund / ETF basis trades with settlement delay** than “instant arbitrage.”

***

### Using PPVs as collateral (lending)

Because PPVs are ERC‑20 tokens, they are technically compatible with DeFi collateral systems.\
Whether a PPV can be used as collateral depends on **third-party risk assessment and listings**.

In general:

* Vaults with **lower volatility**, **deeper liquidity**, and a **longer on-chain track record** are more likely to be considered for collateralization.
* Lending protocols typically require:
  * sufficient liquidity for liquidations,
  * reliable pricing sources (oracle/marking methodology),
  * conservative risk parameters (LTV, liquidation thresholds).

> Collateral support is venue-dependent and may vary by vault.

***

### Slippage and execution tips

* **Check liquidity first**
  * On AMMs, review pool depth and expected price impact.
  * On orderbooks, check bid/ask depth at your trade size.
* **Prefer limit orders when available**
  * Limit orders can reduce unexpected slippage in thin markets.
* **Split large orders**
  * Breaking size into smaller trades can reduce price impact.
* **Compare against PPS**
  * If secondary price is far above PPS, minting may be cheaper (if timing works).
  * If secondary price is far below PPS, secondary purchase may be attractive (with timing/risk understood).

***

### Quick decision guide

* **Need immediate exposure:** buy on secondary.
* **Need immediate exit:** sell on secondary.
* **Want pricing closest to PPS and can wait:** use deposit/withdraw via rolls.
* **See a large premium/discount:** compare market price to PPS and consider timing constraints and liquidity risk.

***

```mermaid
flowchart LR
  A[Deposit collateral] --> B[Next roll: mint PPV shares at PPS]
  B --> C[Hold PPV token]
  C --> D[Sell on secondary market]
  C --> E[Request withdrawal (lock shares)]
  E --> F[Roll(s): burn shares at PPS]
  F --> G[Receive collateral]

  H[Buy PPV on secondary market] --> C
```