Back a treasury

You hold a native token and a balance sheet. The conventional move is to spend the balance sheet buying the token back, which shortens runway to purchase a price effect the market has learned to fade.

The contract

You bring	A native token and a balance sheet you would rather not spend.
Mayflower provides	A market denominated in your token, so every buyer of the reserve-backed asset is a buyer of yours.
Your users get	Floored exposure to your economy, and zero-interest credit against the floor without selling.
You earn	Fees on the market’s activity, rather than paying market makers to defend a price.

The mechanism

Create a market whose reserve asset is the native token. The market issues a new asset, fully backed by the native token, with a floor denominated in it. Anyone who wants floored exposure to the chain or protocol buys that asset, and their tokens flow into the reserve.

Supply leaves circulation and sits behind a floor that only rises. The treasury’s own allocation stays on the balance sheet as a floored position rather than being booked as an expense.

Liquidity without selling

The cash advance facility lets a position holder, the treasury included, draw against the floor value of a position at zero interest with no repayment schedule. The advance cannot exceed the floor and the floor cannot fall, so the position stays solvent by construction. See Cash advance.

Further reading

The argument in full, with the numbers on conventional buybacks, is in Why token buybacks fail.

The shared machinery

Every integration on this page uses one primitive. A market prices itself from a deterministic curve, holds a reserve equal to the area under that curve, and acts as the counterparty to every trade. There is no order book, no external market maker, and no pool anyone has to seed. Each market carries a floor: a guaranteed minimum redemption price that can rise and cannot fall.

See The Assured Value Machine for the mechanism, and Risk for what the floor guarantee does and does not cover.

Talk to us

Tell us what you are building and we will map it onto the machinery. Get in touch.