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.

1. Collateral ratios

   Debt, BTC collateral value, liquidation threshold, and minimum vault ratios determine available actions and risk distance.

   35 minutes · Open lesson

2. Liquidation tax

   Protocol calculations combine liquidation threshold and configured tax parameters; observed percentages must be derived from the active profile.

   45 minutes · Open lesson

3. Liquidator subsidy

   The subsidy can rise as a vault falls below a configured ratio, subject to thresholds, increments, and reserve-rate floors.

   55 minutes · Open lesson

4. Repo and trim economics

   Full and partial liquidation change collateral, debt, liquidator consideration, and reserve flows through different transaction shapes.

   65 minutes · Open lesson

5. The 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.

   35 minutes · Open lesson

6. LP revenue share

   LP returns require a versioned formula for eligible revenue, allocation weights, utilization, capital, duration, and losses; absent commercial inputs remain unknown.

   45 minutes · Open lesson

7. Protocol revenue

   Fees, spreads, issuance activity, liquidations, and reserve deployment form scenarios rather than guaranteed protocol revenue.

   55 minutes · Open lesson

8. Forecast construction

   Base, downside, and upside cases expose volume, price, utilization, fee, adoption, churn, and expense assumptions with sensitivities.

   65 minutes · Open lesson

9. Basis-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.

   35 minutes · Open lesson

10. Risk-adjusted communication

    Founder-grade explanations separate accounting revenue, economic profit, token or LP distributions, liquidity, and tail risk.

    45 minutes · Open lesson