50/50 Concentrated

A Covenant Market type with a wider safety buffer for moderately volatile collateral.

The 50/50 Concentrated market is a Covenant Market for collateral that warrants a wider junior cushion: moderately volatile assets like tokenized equity indices (SPXA), LST-vs-USD pairs (stETH/USD, stMON/USD), as well as newer tokenized credit funds, mezzanine and BBB credit tranches. Deposits are split into a Yield Coin (senior, ~4% target yield) and a Leverage Coin (junior, ~2x leveraged exposure to the collateral's NAV returns). The narrow price band concentrates liquidity around par; the 50% senior / 50% junior split absorbs twice the loss buffer of the 80/20 configuration.

Market characteristics

• Low Yield Coin price volatility

• ~2x Leverage Coin neutral structural leverage

• Minimum buffer: 20%

• High LTV and Leverage volatility

• Narrow yield and price bounds

Parameters

Core

Parameter	Value
Neutral LTV	50%
Duration	3 month perpetual
Min / max price	0.96 / 1.01
Swap fee	30 bps
Protocol fee	5% of funding yield

Rates

Parameter	Value
Max rate	20.5%
Neutral rate	4%
Min rate	-1%

Gates

Parameter	Value
High LTV	80%
Max LTV	96%
Workout rate	-1% daily

Curves

50/50 Concentrated: parameters, funding rate curve, and discount price curve.

At low LTV, excess senior supply discounts the Yield Coin and lifts the rate. The curve crosses the Neutral rate at the Neutral LTV (50%) and dips slightly negative beyond. Above the Max LTV gate (96%), workout pricing takes effect (not shown).