The INDEX Coffer

Deposit a veLUTE lock once and it votes as part of a bloc forever. You are paid in INDEX every week, and the LUTE the vault earns is locked back onto your own position. You never vote again.

The Coffer pays two income legs from one deposit, and they behave differently on purpose. One you can take; the other only grows if you leave the first one alone.

The loop

Five stages, one flow. Each stage is a balance you can check on chain.

Stage	What it holds	What it becomes
1. veLUTE	Every deposited lock, voting as one bloc	Votes for the pools that pay the most
2. INDEX	The bloc's fees and bribes, sold for INDEX and held in the reserve	Your weekly payout, claimable
3. Dividends	INDEX is a coin with a treasury of tokenized stock. It drips that stock to holders, and the reserve is a holder	Tokenized stock sitting in the reserve
4. Liquidity	Those dividends, swept out each week and put to work as protocol-owned liquidity	LUTE emissions
5. LUTE	The emissions that liquidity earns, plus any LUTE the bloc's vote earned directly	Locked onto your position, every epoch

The vault page in the app shows these five rows live, with the dividends and liquidity stages expandable to the individual tokens and positions behind them.

Why INDEX and not a stablecoin. INDEX is not an inert payout. Holding it earns tokenized-stock dividends, and those dividends are what fund stage 4. A stablecoin payout would stop the loop at stage 2.

Your two income legs

	INDEX	LUTE
Where it lands	The Coffer's reserve, credited to you	Locked into your position
When you get it	Claim whenever the weekly window is open	Compounded every epoch, automatically
What it does	Yours to take, sell or hold	Grows your veLUTE, so your share of every future week grows too
How your share is set	By the veLUTE you have in, at the end of each week	By the INDEX you left unclaimed

That last row is the whole design, so it is worth saying plainly.

The trade-off worth understanding

Each week's LUTE is split over the INDEX that was left unclaimed. The INDEX you leave in the reserve is what earns the dividends that become the liquidity that earns the LUTE. So:

• Leave your INDEX in and you take both legs: the INDEX is still yours whenever you want it, and it earns you LUTE in the meantime.
• Claim your INDEX every week and you take one leg. Someone who claims in full every week earns no LUTE at all.

Claiming does not take your lock out of the Coffer, and it does not touch your veLUTE. It only shrinks your share of the next LUTE round. The app tells you the exact share you are giving up before you confirm a claim.

There is no right answer here. Claim when you actually want the INDEX, not on a schedule.

Rates

The vault quotes both legs, and the total is the sum:

• INDEX rate: INDEX paid per veLUTE per year, priced against LUTE.
• LUTE rate: LUTE compounded per unclaimed INDEX per year. Quoted for someone who leaves all of their INDEX in, which is the case the Coffer is built for.

Both depend on what the bloc's vote earns and on the two token prices, so they move week to week. A week where the vault earned nothing is a week that pays nothing; it is not a fixed yield.

What you keep, and what you give up

You keep:

• Ownership of your lock. It is folded into the bloc, never sold or lent, and comes back when you withdraw.
• Permanent weight while you are in, whatever term your lock has left, so it does not decay.
• A full share from the week you deposit in. Tenure inside a week does not matter: every deposit re-casts the bloc's vote at the new weight, so a lock deposited the day before the flip raised that week's revenue in full and takes a full share of it.

You give up:

• Your vote. The vault votes the bloc.
• Extend, permanent on/off and withdraw on that lock, for as long as it is in.
• The ability to leave at a moment's notice. Deposits and withdrawals follow the schedule below.

The schedule

Epochs flip every Thursday at 00:00 UTC.

Window	What is open
Thursday 00:00 to Monday 00:00 UTC	The week's INDEX sits in the reserve, dripping for everyone attached. Claims and withdrawals are closed.
Monday 00:00 to Thursday 00:00 UTC	Claims and withdrawals are open.
The hour either side of the Thursday flip	The Voter rejects deposits and withdrawals entirely.

The four-day window is what keeps the accounting exact: nobody can take a payout and leave before the vote it was counted in has settled, so nobody is paid out of somebody else's share.

Risks

• The rate is not fixed. It depends on vote revenue and on the LUTE and INDEX prices.
• Weekly operation. The vault's cycle is run by an operator each week. A week that is not funded pays nothing until it is; the app shows how many epochs are outstanding.
• Your lock is illiquid while in. Withdrawal returns it as a fresh 26-week lock, and a permanent lock comes back non-permanent (you re-enable it yourself).
• INDEX price risk. Your payout leg is denominated in INDEX, not a stablecoin.

Next: depositing, claiming and withdrawing →