Pool structure

Capital enters through the Vault, in one of two forms; a finite reserve supports the Stable Pool's baseline.

Two pools and a reserve

Senior and junior

The Stable Pool carries a baseline, set per pool and met in order: first from the pool's realized revenue, then the monetization partner's support, then the Protocol Reserve.

The baseline is modeled, not assured; if realized revenue and the support sequence fall short, it can be missed.

It holds the whole book, so no single name carries its result.

Each Single Pool takes direct, concentrated exposure to a single name: the whole of that name's outcome, with no diversification and no baseline.

The same curve, two positions

Both tiers hold the same underlying asset at two points on the risk axis.

The senior tier trades the upside of any single name for a modeled baseline and the finite support sequence behind it, neither of which is assured; the junior tier holds one name for everything that name returns.

A contributor chooses the position, not the name: the structure is the choice, the names are not.

The two also differ in availability: the Stable Pool is always-open, the Single Pools window-bound to the cycle they fund. Each pool publishes a capacity, and capital is committed for the lock term. The terms of exit, including redemption, are set out in Lifecycle.

How the two are priced against each other is taken up in Economics.

The Vault

The Vault is the single entry interface.

Capital takes a position in a pool through it; the position is recorded on the ledger and proven on-chain.

From the Vault, the capital is deployed to fund the production the pool is tied to; any revenue it earns returns through the same interface, as traced in Lifecycle.

The Vault holds the interface, not discretion. It chooses no names and holds no money state.