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The Counterflow Vault is Priest.trade’s automated liquidity vault. It lets passive liquidity providers deposit USDC to back graduated perpetuals markets on Monad and earn real yield.

What is Counterflow?

On Priest.trade, graduated markets are backed by an ERC-4626 vault (CounterflowVault.sol):
  • Deposit USDC, get cfUSDC: When you deposit native Circle USDC, you receive cfUSDC shares.
  • Counterparty to graduated markets: If a backed market runs into a temporary deficit paying out winning traders, Counterflow steps in to cover the difference.
  • Earns platform yield: In exchange, Counterflow receives:
    1. 30% of all protocol trading fees from backed markets.
    2. The market surplus when traders lose (what traders lose repays past covers first, with the remainder becoming vault profit).
  • Redemption cooldown: To stop people from front-running losses by withdrawing right after a big market move, withdrawals use a 3-day cooldown.

Tokenized shares: cfUSDC

Counterflow uses the standard ERC-4626 vault design:
  • Underlying asset: Native Circle USDC on Monad.
  • Share token: cfUSDC.
  • Value appreciation: As trading fees and market surplus flow into the vault, each cfUSDC share becomes worth more USDC over time: Share Price=Total Vault USDC (NAV)Total cfUSDC Shares\text{Share Price} = \frac{\text{Total Vault USDC (NAV)}}{\text{Total cfUSDC Shares}}
  • When you burn your cfUSDC shares during withdrawal, you get back your initial deposit plus your share of accrued earnings.

Which markets does it back?

Counterflow doesn’t back brand-new coins during their initial vAMM launch. It only backs:
  • Graduated markets: Once a coin graduates and seeds its locked Uniswap v4 spot pool, it is automatically backed by Counterflow.
  • Selected listed markets: Coins with deep, verified spot pools where the operator turns on backing.

Contract Addresses

See also