Synthetic Dollar Model

Two-Token Design

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

RISKUSD — The Protocol Dollar

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

atRISKUSD — The Yield Position

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

Why Separate?

Separation serves three purposes:

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

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

3. Clean accounting — RISKUSD is minted 1:1 against deposited USDC and backed by on-vault USDC plus conservatively valued deployed capital/custodian value. atRISKUSD 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 returned to the USDCTreasury via returnPnLUSDC, which routes it across the depositor vault top-up, agent funding, Foundation, and protocol-retained earmarks
2. The treasury fills each earmark per governance-configured ratios
3. The depositor vault top-up earmark increases the RISKUSD balance backing atRISKUSD shares
4. The exchange rate (RISKUSD per atRISKUSD share) increases
5. Each atRISKUSD share is now worth more RISKUSD

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.