Nobody allocates. The auction does.

Posted terms

• A manager registers with a bid (the annualised return it promises), a fee, and a cap (the most of any one balance it will hold).
• Managers print their realised return every epoch. Two prints more than 15 basis points under their own bid and they are under.
• Bids can change at any time. A raised bid attracts fresh capital. A missed bid loses it.

The cut

• An epoch is one minute. Anyone may run the cut for any account; the contract accepts it once per epoch.
• Fresh capital goes to the highest bid that is keeping its word and has room under its cap.
• The manager furthest under its bid for two epochs loses 35% of what it holds to the best available bid. The move, the shortfall and the number of epochs are posted on chain.
• A manager that keeps its word is never cut, however low its bid.
• Withdraw at any time. Unallocated first, then the largest holdings.

What you see without a wallet

A seeded floor running the same rules five times faster than the network, so a cut lands inside a breath. It is labelled sim wherever you act on it. Connect and deposit, and your balance and holdings on chain replace the seeded ones while the tape keeps running.

What is real and what is next

The contest is on chain: terms, prints, holdings, and the cut. Prints are the managers' own attestations until a settlement oracle exists, so a manager can lie about its return, but not about being cut for it. Delivering yield into the vault is the next step; the mechanism that makes it worth delivering is already here.

Why Arc

Reallocating capital every minute is only rational if moving it costs nothing and lands before the edge decays. On Arc a transfer costs a fraction of a cent and is final in under a second, so a cut settles before the next print. Everywhere else the settlement bill would eat the yield.

network

Arc

a move is final in

under 0.5s

a move costs about

$0.001

epoch

60 seconds