Synthetic Dollar Model

Two-Token Design

OpenForage separates the deposit function from the yield function using two dollar-denominated tokens.

RISKUSDC — The Protocol Dollar

• Minted 1:1 against USDC
• Non-yielding — holding RISKUSDC does not participate in trading operations
• Redeemable for USDC through an immediate RISKUSDCVault.redeem(uint256) transaction when checks pass
• Represents your deposit in the protocol

atRISKUSDC — The Yield Position

• Received when staking RISKUSDC into a vault
• Yield-bearing — exchange rate appreciates as trading generates revenue
• Subject to trading losses — exchange rate can decrease
• Subject to the atRISKUSDC withdrawal cooldown and tier lock-ups

Why Separate?

Separation serves three purposes:

1. Risk isolation — Depositors choose whether to take trading risk. Holding RISKUSDC keeps capital in the protocol without trading exposure. Staking into atRISKUSDC opts into risk and reward.

2. Tier flexibility — Different tiers receive different revenue allocations. Each atRISKUSDC vault supports four tiers with independent exchange rates, each backed by the same underlying RISKUSDC.

3. Clean accounting — RISKUSDC is minted 1:1 against deposited USDC and backed by on-vault USDC plus conservatively valued deployed capital/custodian value. atRISKUSDC tracks a floating exchange rate. Separating these simplifies on-chain accounting and makes the yield mechanism transparent.

Exchange-Rate Mechanics

When trading operations generate profit:

1. Realized PnL is deposited into the ProtocolTreasury
2. The treasury splits revenue per governance-configured ratios
3. The vault's share increases the RISKUSDC balance backing atRISKUSDC shares
4. The exchange rate (RISKUSDC per atRISKUSDC share) increases
5. Each atRISKUSDC share is now worth more RISKUSDC

When trading operations lose money, the same mechanism works in reverse — the exchange rate decreases.

Worked Example

The exchange rate reflects cumulative net performance over time.