Auctions, Flat, and Close-to-Redeem
The collective writer system separates primary issuance, secondary trading, writer ownership, and early exit.
Primary issuance uses a funded auction
Section titled “Primary issuance uses a funded auction”New externally held claims are issued through the sleeve’s funded pay-as-bid auction. The native Amoeba DLMM is a secondary venue; it does not perform primary issuance.
The auction lifecycle is:
- the policy authority commits a seller reserve-price vector and auction deadlines;
- buyers place bids and fund the maximum premium and fee in canonical auction escrow;
- the authority reveals the committed reserve prices and issue caps;
- the complete bid index is planned deterministically by price priority and the frozen tie/remainder rule;
- each accepted fill is rechecked by Spread for reserve price, exact solvency, drawdown limits, series limits, and oracle-security capacity;
- accepted premium enters the sleeve vault and the claim is delivered to the buyer;
- rejected or unused funding becomes refundable.
The premium is market-discovered. Exact solvency says whether a fill can be funded; the frozen economic policy separately decides whether writers should sell at that price and risk level.
Flat is collective writer ownership
Section titled “Flat is collective writer ownership”Writers deposit USDC principal during sleeve funding and receive Flat par one-for-one in settlement-mint atomic units. Flat is a transferable Light Token claim on the sleeve’s residual writer economics.
Flat has no governance, voting, pricing, issuance, or policy rights. Transferring Flat changes its owner but does not remove sleeve assets or change reserve, open interest, or total Flat supply.
Once a sleeve is active, ordinary principal redemption is locked until settlement. Flat may trade below its original par value, and transfer does not guarantee that a buyer can immediately withdraw from the sleeve.
V1 close-to-redeem
Section titled “V1 close-to-redeem”The only active-sleeve withdrawal path is proportional whole-book close-to-redeem. The exiting holder must acquire and retire the required fraction of every externally held series, not merely one claim that happens to reduce the current reserve maximum.
The close is staged because a whole-book basket can involve many token accounts:
- Preview: Lean calculates the required claim basket and the exact non-dilutive withdrawal ceiling; Spread remains final authority.
- Begin: the holder locks Flat and snapshots the sleeve, book, policy, and external open interest.
- Collect: the holder deposits required claims into retirement custody in bounded chunks. They still count as external while cancellation rights remain.
- Finalize: only when the complete basket is present, one atomic transition updates every external-OI record, reserve, security exposure, writer principal, Flat supply, and USDC withdrawal.
- Cleanup: issuer-controlled claims can be burned later in bounded housekeeping transactions.
No USDC leaves during basket collection. If the request is cancelled before finalization, claims and Flat are returned through the bounded cancellation flow.
The withdrawal is limited by writer principal, reserve released, and the exact statewise non-dilution ceiling. Locked primary premium remains in the sleeve.
Current user surfaces
Section titled “Current user surfaces”Petri exposes writers list, show, deposit, bid, close-preview, close, close-status, claim, transfer-flat, and policy-audit. The public API exposes matching semantic prepare/read routes.
The current website does not yet expose a writer dashboard or browser writer transaction flow. See Web Client for the current browser boundary.