We present a simple Stake / Unstake experience. Users interact with a synthetic position token that represents their share of a value-tracking liquidity position (no IL). Market makers / arbitrageurs integrate directly with our smart contracts to keep positions balanced and prices aligned.

​
User Experience

​
Stake (earn)

  • Deposit your crypto to mint a synthetic position token.
  • Your position tracks the underlying asset’s price while earning trading fees from the pool.
  • No manual management or rebalancing.

​
Unstake (exit)

  • Burn your synthetic position token to redeem your share.
  • The system unwinds the position and returns your crypto (and accumulated fees) net of any on-chain costs.
Note: We’re pre-launch. Exact UI labels and supported assets will be announced closer to go-live.

​
What Happens Under the Hood (Stake)

When a user stakes, the protocol:
  1. Creates/updates the pool position using the user’s crypto deposit.
  2. Borrows the required stablecoins against the new LP position (collateral) to keep exposure in the target zone.
  3. Adds balanced liquidity (crypto + stable) into the underlying pool and mints LP tokens.
  4. Mints a synthetic position token to the user proportional to the value increase of the pooled position.
Internally, value accounting uses the oracle-aligned expression (at parity (p = p_o)): V=x02L−1V = \frac{x_0}{2L - 1} Where:
  • (V) = value attributed to the pooled position at parity
  • (x_0) = state variable computed from collateral, debt, and oracle price
  • (L) = balance factor used to maintain exposure
(Full derivation is in Advanced (Math & Mechanics).)

​
What Happens Under the Hood (Unstake)

When a user unstakes a portion of total supply:
  1. The protocol reduces collateral and debt by the same fraction of the total pooled position.
  2. It withdraws LP tokens and settles an exact amount of stablecoins to repay the corresponding debt slice.
  3. Any residual crypto from the withdrawal is returned to the user, matching their redeemed share.
This proportional reduction ensures no user can game the pool by choosing arbitrary debt/collateral ratios at exit.

​
Arbitrage & Integrator Hooks (Smart Contracts)

Arbitrageurs connect to a virtual pool that combines:
  • The rebalancing AMM (which adjusts debt vs. collateral to keep exposure),
  • The underlying liquidity pool (crypto ↔ stable),
  • And flash loans to execute atomic, price-neutral operations.

​
Direction A: Crypto → Stable (virtual pool)

  • Flash-borrow the exact stables needed to add balanced liquidity (doesn’t move spot),
  • Swap the resulting LP token to stables via the rebalancing AMM,
  • Repay the flash loan; keep any residual.

​
Direction B: Stable → Crypto (virtual pool)

  • Flash-borrow additional stables,
  • Acquire LP via the rebalancing AMM,
  • Remove liquidity symmetrically to stables + crypto,
  • Use stables to repay the flash loan; return crypto to the taker.

​
Notes for Launch

  • Users only need Stake / Unstake.
  • Market makers and integrators can use the virtual pool contracts for arbitrage and exposure alignment.
  • Detailed interfaces (ABIs, events, function signatures) will be published with the integration docs.