Trust Deposit Operations

Trust deposits are used to lock trust value as a stake for participating in the Verana ecosystem. When you create trust registries, credential schemas, or permissions, a trust deposit is required and held in the trust deposit module.

Make sure you've read the Learn section to understand how trust deposits work in the ecosystem.

Environment Setup

Set Environment Variables

USER_ACC="mat-test-acc"
USER_ACC_LIT=verana1sxau0xyttphpck7vhlvt8s82ez70nlzw2mhya0
CHAIN_ID="vna-testnet-1"
NODE_RPC=http://node1.testnet.verana.network:26657

These variables are required to target the correct environment (testnet, mainnet, or local). Adjust values accordingly.

Prerequisite: Ensure the veranad binary is installed and up-to-date.
See Install or Update Veranad Binary.

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Trust Deposit Structure

Understanding your trust deposit structure is essential for managing operations effectively:

Field	Description
account	Your account address
amount	Current deposited amount in uvna
share	Number of shares you own in the trust deposit pool
claimable	Freed deposit amount available for reclaim
slashed_deposit	Amount that has been slashed
repaid_deposit	Amount repaid after slashing
slash_count	Number of times account has been slashed

Key Concepts:

• Yield Calculation: yield = share × share_value - deposit
• Share Value: Increases over time as fees are distributed to trust deposit holders
• Burn Rate: When reclaiming freed deposits, a percentage is burned to discourage early withdrawal

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View your Trust Deposit

Use this method to view your current trust deposit information, including deposited amounts, shares, claimable balances, and yield calculations.

Syntax:

veranad q td get-trust-deposit [account] --node <rpc-endpoint> --output json

Parameters:

• [account]: Your account address (mandatory)

Examples:

View your own trust deposit:

veranad q td get-trust-deposit $USER_ACC_LIT --node $NODE_RPC --output json

View another account's trust deposit:

USER_ACC="verana1example0123456789abcdefghijklmnopqrstuv"
veranad q td get-trust-deposit $USER_ACC --node $NODE_RPC --output json

Example Output:

{
  "trust_deposit": {
    "account": "verana1sxau0xyttphpck7vhlvt8s82ez70nlzw2mhya0",
    "amount": 10000000,
    "share": 8695652,
    "claimable": 2000000,
    "slashed_deposit": 0,
    "repaid_deposit": 0,
    "last_slashed": null,
    "last_repaid": null,
    "slash_count": 0,
    "last_repaid_by": ""
  }
}

Calculate Your Available Yield

To understand your potential yield, check the current share value:

veranad q td params --node $NODE_RPC --output json

Reclaim Trust Deposit Yield

Reclaim earned interest (yield) from your trust deposits. Yield is generated when transaction fees are distributed to trust deposit holders, increasing the share value over time.

Syntax:

veranad tx td reclaim-yield --from <user> --chain-id <chain-id> --keyring-backend test --fees <amount> --gas auto

Parameters:

• No additional parameters required - claims all available yield

Example:

veranad tx td reclaim-yield --from $USER_ACC --chain-id $CHAIN_ID --keyring-backend test --fees 600000uvna --node $NODE_RPC

Prerequisites:

• You must have a trust deposit with available yield
• Your deposit must not be slashed or must be fully repaid
• Sufficient balance for transaction fees

What Happens:

1. System calculates your available yield
2. Reduces your share count accordingly
3. Transfers yield amount to your account
4. Updates your trust deposit record

Verify Yield Claim

Check your updated trust deposit after claiming:

veranad q td get-trust-deposit $USER_ACC_LIT --node $NODE_RPC --output json

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Reclaim Freed Trust Deposit

Reclaim a specified amount from your claimable trust deposit balance. This is used when you have freed deposits (from terminated permissions, etc.) that you want to withdraw.

Syntax:

veranad tx td reclaim-deposit [amount] --from <user> --chain-id <chain-id> --keyring-backend test --fees <amount> --gas auto

Parameters:

• [amount]: Amount to reclaim in uvna (mandatory) - must be ≤ your claimable balance

Examples:

Reclaim 1,000,000 uvna from claimable balance:

RECLAIM_AMOUNT=1000000
veranad tx td reclaim-deposit $RECLAIM_AMOUNT --from $USER_ACC --chain-id $CHAIN_ID --keyring-backend test --fees 600000uvna --node $NODE_RPC

Reclaim 500,000 uvna:

veranad tx td reclaim-deposit 500000 --from $USER_ACC --chain-id $CHAIN_ID --keyring-backend test --fees 600000uvna --node $NODE_RPC

Important Notes:

Burn Rate Applied

Discouraged Operation: To discourage frequent withdrawals, a portion of your reclaimed amount will be burned according to the trust_deposit_reclaim_burn_rate (default 60%). Only the remaining amount will be transferred to your account.

Example: If you reclaim 1,000,000 uvna with a 60% burn rate:

• Burned: 600,000 uvna
• Transferred to you: 400,000 uvna

Prerequisites:

• You must have claimable balance > 0
• Claimed amount must be ≤ claimable balance
• Your deposit must not be slashed, or must be fully repaid
• Sufficient balance for transaction fees

What Happens:

1. Reduces your claimable balance by the claimed amount
2. Reduces your deposited amount by the claimed amount
3. Reduces your share count proportionally
4. Burns the burn rate percentage of claimed amount
5. Transfers the remaining amount to your account

How to Find Your Transaction Hash

TX_HASH=<Tx_Hash>
veranad q tx $TX_HASH \
  --node $NODE_RPC --output json \
| jq '.events[] | select(.type == "trust_deposit_reclaimed") | .attributes | map({(.key): .value}) | add'

Replace with the correct transaction hash.

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Query Module Parameters

View the current trust deposit module parameters, including share values and burn rates.

Syntax:

veranad q td params --node <rpc-endpoint> --output json

Example:

veranad q td params --node $NODE_RPC --output json

Example Output:

{
  "params": {
    "trust_deposit_reclaim_burn_rate": "600000000000000000",
    "trust_deposit_share_value": "1000000000000000000",
    "trust_deposit_rate": "200000000000000000",
    "wallet_user_agent_reward_rate": "200000000000000000",
    "user_agent_reward_rate": "200000000000000000"
  }
}

Parameter Descriptions

Parameter	Description	Default Value
trust_deposit_reclaim_burn_rate	Percentage burned when reclaiming freed deposits	0.60 (60%)
trust_deposit_share_value	Current value of one share (increases over time)	1.0 (initial)
trust_deposit_rate	Rate for calculating deposits from fees	0.20 (20%)
wallet_user_agent_reward_rate	Reward rate for wallet user agents	0.20 (20%)
user_agent_reward_rate	Reward rate for user agents	0.20 (20%)

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Verification and Troubleshooting

Check Account Balance Before Operations

Ensure sufficient funds for fees and deposits:

veranad q bank balances $USER_ACC_LIT --node $NODE_RPC

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Advanced Operations

Monitoring Trust Deposit Changes

Track your trust deposit changes over time:

# View recent transactions affecting your trust deposit
veranad q txs --query "message.sender='$USER_ACC_LIT'" --node $NODE_RPC --output json

Understanding Share Mechanics

Share Value Growth:

• Initial share value: 1.0
• Increases when transaction fees are distributed to trust deposit holders
• Higher share value = more yield potential

Share Allocation:

• New deposits: shares = deposit_amount ÷ current_share_value
• Yield claim: Reduces shares proportionally
• Reclaim: Reduces shares proportionally

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