Ducat economics, LPs, and revenue
Model incentives with explicit formulas and versioned assumptions.
Follow these 10 lessons in order, or choose the topic you need. Each lesson combines an explanation, a worked example and practice inside the Guild.
Collateral ratios
Debt, BTC collateral value, liquidation threshold, and minimum vault ratios determine available actions and risk distance.
Open lessonLiquidation tax
Protocol calculations combine liquidation threshold and configured tax parameters; observed percentages must be derived from the active profile.
Open lessonLiquidator subsidy
The subsidy can rise as a vault falls below a configured ratio, subject to thresholds, increments, and reserve-rate floors.
Open lessonRepo and trim economics
Full and partial liquidation change collateral, debt, liquidator consideration, and reserve flows through different transaction shapes.
Open lessonThe 8-9% claim
Any quoted liquidation profit must be decomposed into active tax, subsidy, collateral ratio, execution costs, slippage, and price movement rather than memorized.
Open lessonLP revenue share
LP returns require a versioned formula for eligible revenue, allocation weights, utilization, capital, duration, and losses; absent commercial inputs remain unknown.
Open lessonProtocol revenue
Fees, spreads, issuance activity, liquidations, and reserve deployment form scenarios rather than guaranteed protocol revenue.
Open lessonForecast construction
Base, downside, and upside cases expose volume, price, utilization, fee, adoption, churn, and expense assumptions with sensitivities.
Open lessonBasis-trade strategy
If Ducat reserves or LPs use a basis trade, the model must include collateral custody, futures margin, funding, roll, liquidation, venue, and convergence risk.
Open lessonRisk-adjusted communication
Founder-grade explanations separate accounting revenue, economic profit, token or LP distributions, liquidity, and tail risk.
Open lesson