Stables circular economy
How capital, Minima, Stables, xMinima, and protocol funds interact
Bidirectional cyan arrows represent minting and burning mechanism flows; white tips mark each end of those links.
Other flows use pale lines with purple tips so you can follow where value moves at a glance.
* TF: transaction fees.
The Coverage Fund and the Arbitrage Fund each pursue profit inside its own risk budget. Working in parallel with the rest of the map, that activity tends to steer the book back toward balance and keep parity credible.
Neither sleeve is a standalone peg guarantor. In a period of stress, the same dislocations external capital would chase become openings for coverage, arbitrage, and other participants to trade with discipline.
The layout stays strong when the field is level: merchants, shoppers, treasury routes, and capital holders can each pursue a clear objective while incentives still point the system at resilient parity.
The diagram echoes a capital-stack intuition: community treasury asset, senior debt as Stables, leveraged equity in xMinima, and then the rest each with visible room to move.
Day to day, that only works when the stack is transparent: tooling to size exposures, a readable global position, settlement paths with low friction, and fees that are easy to find.
