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Asset Pool: lock in your downside with PONS

Deposit PONS into the Asset Pool of the open PONS Daily series. If the day settles at or below the target price, the Money Pool stands ready to buy your matched PONS at the target. There is nothing to pay up front and, during launch, no PUT is involved on the Asset side.

A fixed floor for the day

  • The target price is 90% of the official reference price at series creation, rounded down to the market tick.
  • It is fixed when the series is created and never moves during the series.
  • Only the official settlement price at 12:00 UTC counts. Intraday moves do nothing.

What happens at settlement

Settles above the target

  • All of your PONS is returned.
  • No fee.

Settles at or below the target

  • Your matched PONS is delivered at the target price for USDG.
  • A settlement fee of 0.9% of matched notional is deducted from the USDG you receive. This is the only fee in the protocol.
  • Unmatched PONS is returned.

Matching

Both pools are matched pro-rata at the 11:00 UTC cutoff. If the amount the Money Pool can buy at the target is smaller than the Asset Pool, only part of your PONS is matched; the rest is simply returned at settlement. Every share in the pool carries the same match rate.

What you need to know

  • PONS is locked from deposit until settlement at 12:00 UTC. You cannot exit early.
  • Protection covers only the matched part. Unmatched PONS has no floor and is returned as it is at settlement.
  • Protection is for the day: each series stands alone, and the next day's target is set from the next day's reference price.

Timing and renewal

  • Deposits join the open series; after 11:00 UTC you join the next day's series.
  • Auto-Renew only rolls PONS that is still PONS after settlement into the next series. USDG received through delivery is never swapped back or rolled.
  • If the next series has no capacity or is not accepting deposits, Auto-Renew does not run and the balance becomes claimable.

Worked example

Series: reference 1.00 USDG, target 0.90 USDG. Money Pool 1,000,000 USDG, Asset Pool 600,000 PONS, so all 600,000 PONS is matched.

You deposit 60,000 PONS.

  • Settles above 0.90: 60,000 PONS back. Fee 0.
  • Settles at or below 0.90: 54,000 USDG at the target minus a 486 USDG settlement fee, so 53,514 USDG.

All figures are illustrative.