Configuration

Values for KNX and NYK. Each row links to the How it works page for its setting. Reasons gives the reason for each value. The deployment’s chain is Robinhood Chain.

KNX

NYK

The origination fee passes through the NYK fee treasury with the buy and sell fees (The fee treasury address).

NYK early access

NYK fee split

The NYK fee treasury divides each fee payment by share count (The split): Example: a 100 KNX fee payment sends 50 KNX to the elevation treasury, 25 KNX to the NYK treasury and 25 KNX to the community treasury. The holder of DEFAULT_ADMIN_ROLE on the NYK fee treasury can change the split after launch (Authority):

• setRecipients replaces the recipients and their share counts.
• setElevation sets the destination and share count of the elevation treasury share. The share count can be lowered but cannot return to 0, and the destination must be an address with code that is not already a recipient.

These are the setters a change of split during the end of the endowment uses. EndowmentController_v1 has no function that changes a fee treasury’s split.

Reasons

Each reason is stated once, at the level of the market’s role. Roles. KNX is the base market: the endowed market that accumulates the reserve. Its configuration gives a price that changes less per token of supply. NYK is issued against KNX. Its configuration gives a price that changes more per token of supply. Band and target multiple. The band width and the target multiple set how much the price changes per token of supply (Narrow band and wide band). After sells shrink the reference segment, a re-form rebuilds the band from the new reference segment, and price discovery starts again from there.

• KNX has a wide band and a low target multiple. The 30% band was chosen after a comparison of 20%, 30% and 40% bands that measured how much of the curve’s reserve reaches the long-term allocation at a full band.
• NYK has a narrow band and a higher target multiple.
• The re-form after a shrink waits for a 10% shrink, so that smaller shrinks do not each cost an on-chain re-form.

Endowed KNX. On an endowed market, the endowment controller draws from the reference reserve while the premium segments keep trading. The controller is the only address that can draw, and endowment draws and credit draws share one limit. A review found that with separate limits for separate drawers, their combined draws could exceed the reference price times the lower of supply and the reference segment’s size. Borrowing on KNX. The KNX credit facility is deployed, and borrow is granted to no address, so the endowment controller makes every draw on the KNX reference reserve. Granting borrow on KNX requires a new review of the shared draw bound on KNX. USDG. The deployment’s chain is Robinhood Chain, and USDG is the stablecoin used there. Fee rates and LTV. The buy, sell and origination fees and the LTV are parameter settings. They set the cost of trading and borrowing and the fee each market collects. The holders of their setters can change them (Fees and routing). Fee routing.

• KNX: all fees go to the KNX treasury through a splitter, so the allocation can be changed after launch with the splitter’s setters.
• NYK: half of each fee payment goes to elevation, so NYK trading funds increases in the NYK reference price. A quarter goes to operations and a quarter to the community treasury. The configuration assigns no use to the community share.
• KNX has the elevation route wired at 0%.

Credit on NYK.

• Loan valuation. Each loan is valued at the NYK reference price, the lowest price on the NYK curve.
• Rounds across transactions. Each round pays the buy fee and the origination fee, and each round’s buy increases supply, so the next round buys at the same price or a higher one.
• 26 rounds per transaction. A per-transaction limit was set in response to an audit finding. With the NYK buy fee, LTV and origination fee, each round carries $r = 0.99 \times 0.95 \times 0.965 = 0.9076$ of its collateral into the next when every buy is at the reference price (Looping). At that price, 26 rounds mint tokens worth 9.85 times the new collateral at the reference price, against 10.71 times with no limit on rounds. Buys above the reference price carry less into each round.

Early access.

• Direct early-access purchases. Early-access NYK is collateral from the opening of public trading, and looping starts with public buying.
• The same terms for every buyer. Early access is phased access to one market.
• 1,000,000 NYK. A round-number cap.
• 10% fee. The fee funds operations and protocol development. A 20% rate was considered and not chosen.

_{Source: house-markets/config-space at d2d3c7fc (main); house-markets/middleware at 35ebfefc (main); house-markets/contracts at 0ebbc89a (branch integration/v12-post-qa).}