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

# Fragmetric’s Core Processes

## Overview

Fragmetric's FRAG-22 protocol streamlines asset management on Solana through four core processes: Deposit and Minting, Reward Tracking and Claiming, Yield Optimization, and Unstake and Withdraw. Users deposit supported tokens and receive corresponding fragAssets. Rewards are precisely tracked and distributed, and assets are automatically optimized across yield sources. Withdrawals seamlessly redeem underlying assets, ensuring transparency, efficiency, and maximal returns for all participants.

***

## **1. Deposit and Minting**

Users deposit supported Liquid Staking Tokens (e.g., JitoSOL) into Fragmetric. Fragmetric’s Normalized Token Pool evaluates the deposited asset's real-time value and mints an equivalent amount of fragAssets (e.g., fragSOL), ensuring accurate asset representation.

* **Deposit:** User deposits supported assets into the Fragmetric Reserve.
* **Asset Valuation:** Normalized Token Pool calculates the current value based on integrated pricing sources.
* **Minting:** Users receive fragAssets proportional to their deposits.

```mermaid theme={null}
flowchart LR
  User[User] -->|1: Deposit \n e.g. JitoSOL| Reserve[Fund Reserve Account]
  Reserve -->|2: Valuation & Pricing| NormalizedPool[Normalized Token Pool]
  NormalizedPool -->|3: Mint fragAsset \n e.g. fragSOL| User

  classDef user fill:#34A853,color:#fff
  classDef reserve fill:#4682B4,color:#fff
  classDef pool fill:#00AEEF,color:#fff

  class User user
  class Reserve reserve
  class NormalizedPool pool
```

***

## **2. Reward Tracking and Reward Claim**

Rewards (staking yields, NCN/AVS rewards) are continuously tracked by the FRAG-22 Reward Module. Contributions are calculated dynamically using Solana's transfer-hook functionality. Users can claim their accrued rewards at any time.

* **Reward Accumulation:** Rewards accrue proportional to user contributions (balance × time held).
* **Transfer Tracking:** Contribution recalculates upon any token transfer (transfer-hook).
* **Claiming Rewards:** Users initiate claims, and rewards transfer from the Reward Reserve.

```mermaid theme={null}
flowchart LR
  User[fragAsset Holder] -->|Initiate Claim| RewardClaim[Reward Claim Process]
  RewardClaim -->|Validate & Calculate Rewards| RewardAccount[User Reward Account]
  RewardAccount -->|Release Rewards| RewardReserve[Reward Reserve Account]
  RewardReserve -->|Distribute to User| User

  classDef user fill:#34A853,color:#fff
  classDef reward fill:#4682B4,color:#fff
  classDef account fill:#00AEEF,color:#fff
  classDef reserve fill:#FFC107,color:#000

  class User user
  class RewardClaim reward
  class RewardAccount account
  class RewardReserve reserve

```

***

## **3. Yield Optimization**

Fragmetric automatically optimizes yields by strategically allocating deposited assets across yield sources (such as restaking protocols for NCN/AVS networks). Yield Source Adapters regularly harvest these yields, ensuring optimized returns.

* **Allocation:** Assets automatically allocated to highest-yielding sources.
* **Yield Generation:** Assets accrue additional yield through external protocols (NCN/AVS).
* **Yield Harvesting:** Periodically collected and stored in the Reward Pool.

```mermaid theme={null}
flowchart LR
  Reserve[Fund Reserve Account] -->|Allocate Assets| YieldAdapters[Yield Source Adapters]
  YieldAdapters -->|Deploy Assets| ExternalProtocols[External Yield Protocols - NCN/AVS]
  ExternalProtocols -->|Generate Yield| YieldAdapters
  YieldAdapters -->|Harvest Yield| RewardPool[Fund Reward Pool]

  classDef reserve fill:#4682B4,color:#fff
  classDef adapters fill:#00AEEF,color:#fff
  classDef protocols fill:#FFC107,color:#000
  classDef reward fill:#34A853,color:#fff

  class Reserve reserve
  class YieldAdapters adapters
  class ExternalProtocols protocols
  class RewardPool reward

```

***

## **4. Unstake and Withdraw**

Upon withdrawal request, Fragmetric processes unstaking via the Normalized Token Pool. fragAssets are burned proportionally, redeeming underlying assets back to users based on current valuations.

* **Withdrawal Request:** User initiates unstake and withdrawal.
* **Burn Tokens:** fragAssets burned to redeem underlying assets.
* **Asset Redemption:** Underlying assets proportionally released to the user.

```mermaid theme={null}
flowchart LR
  User[User] -->|Request Withdrawal| WithdrawalProcess[Withdrawal Process]
  WithdrawalProcess -->|Burn fragAssets| NormalizedPool[Normalized Token Pool]
  NormalizedPool -->|Redeem Underlying Assets| Reserve[Fund Reserve Account]
  Reserve -->|Transfer Assets| User

  classDef user fill:#34A853,color:#fff
  classDef withdraw fill:#00AEEF,color:#fff
  classDef pool fill:#4682B4,color:#fff
  classDef reserve fill:#FFC107,color:#000

  class User user
  class WithdrawalProcess withdraw
  class NormalizedPool pool

```