> 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/markets/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 | None (0% currently) | ### 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 market specification

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).*