A price that only moves up
Every FLETCH is backed by a share of a real USDG reserve. The floor is simply that reserve divided by the token supply — the amount of USDG you are guaranteed to get back when you burn one FLETCH.
floor() at any block.The core is engineered so that no action can ever lower the floor. Mint fees add to the reserve, borrow interest is paid up front into the reserve, yield compounds inside it, and redemptions pay out exactly the floor — never more. This is not a promise; it is a property proven by invariant fuzzing over every sequence of actions (16,384 randomized calls, zero violations).
Where the USDG lives
The reserve is denominated in USDG, a dollar stablecoin. It isn't left idle — it's deposited into the Steakhouse USDG vault, an ERC-4626 MetaMorpho vault on Robinhood Chain, where it earns lending yield. That yield compounds directly into the reserve, so the floor keeps climbing even when no one is trading.
The adapter
USDG uses 6 decimals; the Fletch core reasons in normalized 18-decimal units. A thin, owner-less adapter sits between them: it custodies the USDG, handles every 6↔18 conversion, and is the only contract allowed to move funds in and out of the vault. Because the adapter is the spender, the token you approve when you mint or repay is USDG to the adapter — not to the core.
The adapter can only ever be called by the Fletch core, and the core has no owner. Neither can be upgraded or redirected to a different vault after launch.
Mint · Redeem · Borrow · Repay · Liquidate
Five actions, all permissionless. Each one either lifts the floor or leaves it exactly where it was.
Mint
Deposit USDG, receive FLETCH at the current floor minus a 2.5% fee. All the USDG — fee included — enters the reserve, so every mint nudges the floor up for everyone.
Redeem
Burn FLETCH for its full floor value in USDG, zero fee, any time. You never receive more than the floor, so redeeming can't dilute anyone else.
Borrow
Lock FLETCH as collateral and borrow USDG up to 99% of its floor value for a term you choose. Interest is paid up front and stays in the reserve. Re-borrowing stacks onto your existing loan.
Repay
Repay the USDG principal to get all your collateral back. Since the floor only rises, your locked FLETCH is always worth more than the fixed debt — repaying is the rational move.
Liquidate
Once a loan passes its term, anyone can liquidate it: the collateral is burned and the debt is cleared. Burning supply against a fixed reserve pushes the floor up again.
Loop
Mint → borrow → re-mint to stack exposure at 99% LTV, minus the 2.5% mint fee each pass. The app's loop calculator shows your effective leverage before you commit.
The floor is monotonic by construction
Walk through what each action does to reserve ÷ supply:
- Mint — adds USDG to the reserve and mints FLETCH worth only 96.5% of it (after the fee), so reserve grows faster than supply. Floor up.
- Redeem — removes exactly floor-value USDG per FLETCH burned, so the ratio is preserved. Floor unchanged (never down).
- Borrow — interest paid up front stays in the reserve while supply is unchanged (collateral is locked, not burned). Floor up.
- Repay — returns principal to the reserve and unlocks collateral. Floor unchanged (never down).
- Liquidate — burns collateral (supply ↓) against a fixed reserve. Floor up.
- Yield — the vault earns; reserve grows with supply flat. Floor up.
There is no code path that removes more value than it burns supply for. That's the whole invariant, and it's checked on-chain and fuzz-proven off-chain.
Every constant, fixed at deploy
None of these can change after launch — no admin, no governance, no upgrade path.
| Parameter | Value | Notes |
|---|---|---|
| Mint fee | 2.5% | Kept in the reserve on every mint. Lifts the floor. |
| Redeem fee | 0% | Redeem for full floor value, any time. |
| Max LTV | 99% | Borrow up to 99% of your collateral's floor value. |
| Borrow rate | ~3.9% / yr | Fixed. Paid up front, straight into the reserve. |
| Max term | 365 days | Loan duration you choose at borrow time. |
| FLETCH decimals | 18 | USDG is 6-dec; the core normalizes everything to 18. |
| Chain | Robinhood Chain · 4663 | Where the reserve and the vault live. |
What can go wrong
The floor guarantee is a property of the code — but the code sits on top of real systems. Understand these before you deposit.
- Redemption liquidity.The floor is always backed, but at any instant only the USDG sitting in the vault is instantly redeemable — principal that's out on loans returns as borrowers repay. If utilization is very high, a large redeem may need to wait for repayments or liquidations.
- Yield-source risk.The reserve is deposited in a third-party MetaMorpho vault. A failure, exploit, or bad-debt event in that vault would impair the reserve. Fletch inherits the vault's risk.
- USDG peg.The floor is denominated in USDG. If USDG loses its dollar peg, the floor's dollar value moves with it.
- Smart-contract risk. The contracts are immutable and tested (unit, decimal-aware, real-vault fork, and invariant fuzzing), but immutability cuts both ways: a latent bug can never be patched.
- Liquidation is permissionless but unincentivized. Expired loans rely on someone calling
liquidate(). Because the floor only rises, rational borrowers repay to reclaim more-valuable collateral, so defaults should be rare — but a keeper is expected to clear any that occur. - Experimental software. Nothing here is financial advice. Only deposit what you can afford to lose.
Addresses
Everything is verifiable on-chain. The reserve asset and the vault are live today; the FLETCH core and its adapter publish here the moment they deploy.
Always confirm you're interacting with the official addresses above before approving any token. On a chain with copycats, the contract is the only source of truth.