Economics Overview
Multyr contracts are deployed on Arbitrum One. The system is currently in validation phase. Deposits are not open to the public. Behavior described on this page reflects the protocol's designed behavior; some mechanisms are active in shadow testing, others become active at public launch. See the Status page for details.
Multyr's economic model is based on the interaction between:
- protocol-generated fees
- treasury capital
- token supply dynamics
Core Structure
The system is composed of three primary components:
| Component | Description |
|---|---|
| Treasury | Protocol-owned capital accumulated and deployed within the system |
| Fee Flow | Fees generated by vault activity and partially retained by the protocol |
| Token Supply | Fixed supply with evolving circulating distribution |
Value Flow
The protocol follows a fee-driven economic model:
- users interact with vaults
- vaults generate yield
- the protocol collects fees
- a portion of fees is retained
- retained fees contribute to treasury growth
Treasury Role
The treasury acts as the central economic component:
- accumulates retained fees
- may be deployed into strategies
- evolves based on system performance
Treasury growth is not guaranteed and depends on:
- protocol usage
- allocation outcomes
- market conditions
NAV Framework
The system may be analyzed through a treasury-based reference:
Price reference = Treasury Value / Circulating Supply
Circulating supply refers to tokens that are economically active — excluding locked vesting, treasury-held, and reserve allocations. This is not the same as dividing by total supply (300M).
This metric is indicative and may change over time. Token market price is determined by supply and demand and may diverge from this reference.
System Characteristics
The economic model:
- is driven by protocol activity
- depends on fee generation
- is influenced by treasury performance
- evolves with circulating supply
Important Considerations
- treasury growth is not guaranteed
- fees depend on protocol usage
- token price may diverge from NAV
- market conditions impact outcomes
Multyr's economic behavior emerges from the interaction between system usage, capital allocation, and external conditions.