> ## Documentation Index
> Fetch the complete documentation index at: https://docs.shores.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Smart contract architecture

> The Shores contracts.

## Vault

Each vault cell has its own tokenized vault contract that issues shUSD.

* **Minting** is limited to verified addresses through the permission manager.
* **Mint price:** 1.00 at launch; afterwards, the vault's current NAV.
* **No redemption function.** Holders exit by selling on the secondary market.
* **Lockup:** newly minted shUSD cannot be transferred until its lockup ends. \[TBD: implementation]
* After the lockup, shUSD is a transferable ERC-20 token, so it can trade in secondary-market pools.

## Permission manager

Keeps the list of verified addresses that can mint and stake.

## Staking contract

Tracks staked shUSD and credits the monthly yield. See [Staking and payouts](/technical/staking-and-payouts).

## Points

Calculated offchain and claimed onchain against a published Merkle root. \[TBD]

## Standards and tooling

Built on OpenZeppelin libraries with Foundry.

### Composability

| Standard | Usage |
| - | - |
| ERC-20 | shUSD is a fungible ERC-20 token |
| ERC-4626 (style) | Each vault follows the tokenized-vault pattern, with minting restricted to verified addresses and no redemption path \[TBD: confirm interface] |

\[TBD: other standards, for example permit support]

\[TBD: source code repository]


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