> For the complete documentation index, see [llms.txt](https://docs.covenant.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.covenant.finance/market-types/80-20-concentrated.md).
# 80/20 Concentrated
*A Covenant Market type calibrated for stable-yield collateral.*
The **80/20 Concentrated** market is a Covenant Market for low-volatility, yield-bearing collateral such as tokenized credit funds (HYBOND, ACRDX, JAAA), tokenized treasuries (BUIDL, JTRSY), yield-bearing stablecoin vaults (sUSDS, sUSDe), and ETH-LST pairs (stETH/ETH, weETH/ETH). Deposits are split into a Yield Coin (senior, \~4% target yield) and a Leverage Coin (junior, \~5x leveraged exposure to the collateral's NAV returns). The narrow price band concentrates liquidity around par, producing tight, low-slippage swaps for both tranches.
## Market characteristics
* Low Yield Coin price volatility
* \~5x Leverage Coin neutral structural leverage
* Minimum buffer: 10%
* High LTV and Leverage volatility
* Narrow yield and price bounds
## Parameters
### Core
| Parameter | Value |
| --------------- | ------------------- |
| Neutral LTV | 80% |
| Duration | 3 month perpetual |
| Min / max price | 0.97 / 1.00 |
| Swap fee | 5 bps |
| Protocol fee | 5% of funding yield |
### Rates
| Parameter | Value |
| ------------ | ----- |
| Max rate | 16.5% |
| Neutral rate | 4% |
| Min rate | 3.5% |
### Gates
| Parameter | Value |
| ------------ | --------- |
| High LTV | 90% |
| Max LTV | 96% |
| Workout rate | -1% daily |
## Curves
80/20 Concentrated: parameters, funding rate curve, and discount price curve.
*As LTV rises, the AMM clears the Yield Coin closer to par, compressing its yield toward the Neutral rate. At low LTV, excess senior supply forces a discount and a higher funding rate. Above the Max LTV gate (96%), workout pricing takes effect (not shown).*
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