Docs · 02
EMISSION
THE FORMULA
Sourcesrc/K401Distributor.sol186 lines
EPOCH_LENGTH = 8 hours // 3 rebases per day
R_MAX = 45 bps // 0.45% per epoch, hard ceiling
K_PREMIUM = 1.75
P = twapPrice / nav()
rate = R_MAX * clamp((P - 1) / (K_PREMIUM - 1), 0, 1)The rate is a linear ramp on the premium, clamped at both ends. At P = 1.00 it is exactly zero. At P = 1.75 and above it saturates at 0.45% per epoch and goes no higher, no matter how far the price runs.
WHY THE ZERO MATTERS
The test that proves ittest/Emission.t.sol143 lines
Every OHM fork that died, died the same way. Price fell through backing, the rebase kept minting anyway, supply grew into a market that was already selling, and the backing per token collapsed. The emission was the accelerant.
P <= 1.0 means rate = 0
Not "the DAO votes to pause emission". Not "the policy team lowers the control variable". The clamp is in the formula, so at or below backing the protocol mints nothing at all, and the only thing that can happen to backing per token is that it goes up.
| Premium P | Rate per epoch | Implied APY | State |
|---|---|---|---|
| 0.80x | 0.000% | 0% | Below backing — nothing minted |
| 1.00x | 0.000% | 0% | At backing — nothing minted |
| 1.25x | 0.150% | ~419% | Ramping |
| 1.50x | 0.300% | ~2,563% | Ramping |
| 1.75x | 0.450% | ~14,268% | Saturated |
| 3.00x | 0.450% | ~14,268% | Saturated — capped |
APY here is the mechanical extrapolation of the current rate over 1095 epochs. It is a restatement of the rate, not a forecast, and it assumes the premium never moves — which it will.
THE SECOND CLAMP
Sourcesrc/K401Treasury.sol293 lines
The minted amount is additionally clamped so that treasury RFV coverage is never breached. Even inside the emitting band, the Distributor will mint less than the formula says if minting the full amount would push rfvPerToken() below one USDG. The invariant wins over the rate.
WHO CALLS IT
rebase()is permissionless once 8 hours have elapsed. There is no privileged keeper.- The caller keeps 0.5% of the epoch mint as a gas rebate. It is a bounty, sized so closing the epoch is profitable for anyone watching.
- Emission is sent to the staking contract, never sprayed at holders. Liquid balances are byte-identical before and after.
- If the rate is zero the call still rolls the epoch, and pays no bounty because nothing was minted.