Token
Backstop
The capped USDG vault that is counterparty of last resort.
Purpose
When protection demand outruns income demand, GUARD deposits would go unmatched. The Backstop fills the CARRY side, at or above each template's minimum coupon.
Structure
| Rule | Value |
|---|---|
| Standard | ERC-4626, USDG |
| Total deployed cap | 60% of assets |
| Per underlying cap | 25% |
| Per series cap | 10% |
| Minimum hold | 1 day |
| Queue | FIFO |
Worked example
Backstop assets 2,000,000 USDG. A TSLA series has 300,000 GUARD and 120,000 CARRY. The fill is limited to 200,000 by the per-series cap and sized so the coupon stays at or above 0.55%.
Withdrawal queue
Withdrawals up to idle USDG settle immediately. The rest queue FIFO and fill as series settle.
Hold period
Shares must be held 1 day before withdrawal.
Risk to Backstop depositors
The Backstop holds CARRY legs, so a breach delivers stock at S0 into the vault.
Governance surface
Caps, minimum coupons and the hold period are governed. Gauge votes can only tighten per-underlying caps.