80/20 Wide

A Covenant Market type calibrated for volatile collateral.

The 80/20 Wide market is a Covenant Market for volatile collateral, such as major crypto assets like BTC, ETH, MON, and HYPE. 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 wide price band absorbs price volatility in the underlying, at the cost of larger swap slippage for both tranches.

Market characteristics

• High Yield Coin price volatility and swap slippage

• ~5x Leverage Coin neutral structural leverage

• Minimum buffer: 8%

• Broad yield and price bounds

Parameters

Core

Parameter	Value
Neutral LTV	80%
Duration	3 month perpetual
Min / max price	0.37 / 1.02
Swap fee	5 bps
Protocol fee	5% of funding yield

Rates

Parameter	Value
Max rate	5,225%
Neutral rate	4%
Min rate	-2.5%

Gates

Parameter	Value
High LTV	92%
Max LTV	96%
Workout rate	-1% daily

Curves

80/20 Wide: parameters, funding rate curve, and discount price curve.

The wide band lets the Yield Coin discount deeply at low LTV (to ~0.37 of NAV, implying extreme funding rates off-chart) and slightly above par at high LTV. Above the Max LTV gate (96%), workout pricing takes effect (not shown).