> 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-wide.md).

# 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    | None (0% currently) |

### 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

<figure><img src="/files/pfY2zvDsosWhvsj4JBMf" alt="80/20 Wide market specification"><figcaption><p>80/20 Wide: parameters, funding rate curve, and discount price curve.</p></figcaption></figure>

*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).*