All volume passes through the pool.
Net flow decides the epoch.
Every charter, entry, withdrawal and exit routes through one Hooked V4 pool. The trading fees land with the central bank, and the direction of capital sets what the bank does next.
Net capital flow
Capital is flowing into the bank.
Expansion mode
The bank grows the supply.
If net capital flow is positive, the central bank goes into expansion for that epoch. The issuance of $STANDARD runs at a higher rate to incentivize more growth.
Trading fees are then directed to the expansion vault, which purchases tokenized gold and increases protocol owned liquidity to strengthen the reserves for $STANDARD.
fees→expansion vault→gold + liquidity
- Issuance rate
- Higher
- Fees routed to
- Expansion vault
- Reserves
- Building