Onyx Overview

Onyx (by Enzyme Protocol) is a set of EVM-compatible smart contracts to tokenize on- and off-chain value.

The purpose of this document is to provide a high-level overview of the aims, architecture, governance, and idiosyncrasies.

What it does:

• creates an ERC20 tokenized representation of shares

• supports arbitrary deposit and redeem mechanisms, e.g., async queues

• supports customizable fees

• supports customizable tracking of credits and debts

What it does NOT do:

• monitor, track, or restrict what actually happens with the tokenized value

i.e., the on-chain component of Onyx is only concerned with Shares on/off-boarding, fees, and misc accounting; not asset management itself.

Example

FooBar has wallets spread across Arbitrum, Ethereum, and Solana, and holds US Treasuries off-chain.

FooBar deploys "FBAR" shares on Arbitrum via Onyx. They add a management and performance fee. They add an async deposit requestor and a first-come, first-served redeem queue. FooBar adds a line-item expense of $12,000 for an account administrator, to be written-down linearly over 12 months. After 1 month, FooBar's administrator totals the value of all asset holdings across all on- and off-chain accounts, and posts the total value of holdings. The linear debt simulates a $1,200 (10%) write-down, and then fees are run against the net value. The final NAV share value is stored on-chain.

In the meantime, depositors and redeemers have made requests to their respective deposit and redeem handlers. An administrator executes all requests at the lastest NAV share value.