EVE & NAV
What EVE represents, how net asset value is calculated, and what happens when a strategy misbehaves.
Testing phase — treat as a test protocol
Everstrat is deployed on Ethereum mainnet (chain id 1), but it is in a testing phase and should be treated as a test protocol. Entry is invite-gated and the software is experimental.
EVE is a proportional claim
When you deposit ETH into Everstrat, you receive EVE — an ERC-20 token that represents your fractional share of the protocol's total net asset value (NAV), measured in ETH.
Your share of the protocol is simple:
live supply = total EVE supply - in-window priced queued EVE
your active share = your EVE balance / live supplyAs the protocol's strategies earn (or lose) value, NAV rises or falls, and each EVE token is worth correspondingly more or less ETH. There is no promised return. EVE is not pegged to anything.
What counts as NAV
StrategyManager's totalNAVInETH() starts with the following gross assets, then deducts
the live priced queued liability described below:
| Component | What it includes |
|---|---|
Strategy navInETH() calls | Each registered strategy's reported ETH value — for UniCLStrat this includes idle ETH and WETH, the LP position value, uncollected trading fees, and paired-token inventory (the paired token is valued via the Oracle). |
| StrategyManager balance | Any ETH sitting on the StrategyManager contract itself, waiting to be deployed. |
| Controller balance | Any ETH held by the Controller — received from the AMM but not yet forwarded to strategies. |
| AMM free balance | ETH in the AMM contract that is not reserved for pending claims: address(AMM).balance − lockedForClaims. |
| Supported-ERC20 balances on the StrategyManager | Supported tokens held by the manager, valued through Oracle.convert; for example, paired-token inventory received through emergency recovery. A zero balance contributes no value. |
From that asset total, it subtracts the ETH liability of priced, unprocessed requests whose batches
are still inside the 3-day processing window (liveRedemptionOffsets()). Unpriced requests remain
equity; their escrowed EVE is not deducted from NAV. The priced liability expires with the processing
window, without requiring a reset transaction. AMM pricing also excludes in-window priced redemption
shares from its live supply denominator.
lockedForClaims tracks ETH already owed to users who have had their queued exit processed but have
not yet called claim(). That ETH is excluded from NAV because it is no longer the protocol's to
deploy.
The full formula is:
NAV = strategy NAVs + StrategyManager ETH + Controller ETH + AMM free ETH
+ supported ERC-20 value held by StrategyManager
- in-window priced redemption liabilities
base price = NAV / live supplyAccount in ETH. Then price EVE.
Idle ETH includes StrategyManager, Controller, and AMM free balances. Supported ERC-20s are valued through Oracle. In-window priced redemption liabilities are deducted; locked claim ETH is already excluded from AMM free balance. Pricing also adjusts the live EVE supply.
Fail-closed NAV
The NAV calculation is fail-closed: if any strategy's navInETH() call reverts — for example
because a required oracle or pool observation is unavailable, or the strategy is broken — then totalNAVInETH() reverts
too. When NAV cannot be computed, the AMM cannot price anything, so enter(), exit(), and batch
pricing all freeze until the problem is resolved.
This is a deliberate safety property. Allowing enters and exits to proceed against a stale or missing NAV figure would let users trade at a price that does not reflect reality, which could drain value from the remaining holders. The protocol prefers a temporary freeze over mispricing.
A paused UniCL strategy can still report NAV. Pausing alone does not imply a failed NAV read. Non-zero supported ERC-20 balances on StrategyManager also require valid oracle prices.
Governance can recover funds or use StrategyManager.forceRemoveStrategy() to deregister a
strategy whose NAV reverts. Normal removeStrategy() requires its reported NAV to be at most
10 wei and propagates a failed NAV read. Forced removal drops any remaining strategy assets out
of protocol NAV; it does not automatically recover them.
Why this matters to you
- NAV changes can come from deposits, exits, fees, asset prices, donations, or recovery actions. NAV alone is not a return measure. Compare the base price per EVE, and account for fee dilution and queued liabilities.
- Unavailable NAV can block normal entry and exit until valuation recovers or governance acts. Claims of already credited ETH and eligible queued cancellations do not require fresh NAV.
For a full treatment of what can go wrong, see Key risks.
See also
- Pricing & the bonding curve — how NAV feeds the enter and exit prices
- Strategies & yield — how strategies contribute to NAV
- Architecture at a glance — the full contract layout
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