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Restructured from flat .tex/.pdf files into per-paper subdirectories. Added Antje Worring as co-author on all papers. Synced PDFs to pdfs/ for download site.
83 lines
3.3 KiB
TeX
83 lines
3.3 KiB
TeX
\section{Asset Taxonomy}
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\label{sec:taxonomy}
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Three mutually exclusive asset classes exist within the protocol. Conflating classes is a protocol violation enforceable at both the contract and legal layers.
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\subsection{Class~1: Credit Assets}
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\label{sec:credit}
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\begin{definition}[Credit Asset]
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A credit asset is an overcollateralized, in-kind redeemable liability of the protocol, minted against vault-backed base assets subject to a hard LTV cap.
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\end{definition}
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\noindent\textbf{Instances.} LETH (backed by ETH), LBTC (backed by BTC).
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\begin{requirement}[Credit Asset Properties]
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\label{req:credit}
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A credit asset \textsc{must} satisfy all of the following:
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\begin{enumerate}[nosep]
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\item Minted only against recognized, attested backing.
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\item Redeemable 1:1 in kind: $\texttt{burn}(x) \Rightarrow \texttt{release}(x)$ of the underlying base asset.
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\item Hard issuance cap at or below the configured LTV ratio.
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\item No direct claim on strategy yield.
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\item No governance, profit-share, or security rights.
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\end{enumerate}
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\end{requirement}
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\begin{invariant}[Class Separation]
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\label{inv:class-sep}
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\[
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\texttt{creditAsset} \neq \texttt{yieldShare} \neq \texttt{securityToken}
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\]
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Enforced technically and legally via separate token contracts, separate registries, separate accounting buckets, and separate disclosures. A single contract or accounting path \textsc{must not} conflate two classes.
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\end{invariant}
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\paragraph{Canonical phrasing.} For regulatory filings, disclosures, and counterparty agreements:
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\begin{quote}
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\emph{LETH is a protocol-issued, fully collateralized, in-kind redeemable credit token backed by ETH vault assets and minted subject to a hard maximum loan-to-value ratio of 90\%, with strategy yield accruing to protocol surplus rather than to LETH holders.}
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\end{quote}
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\subsection{Class~2: Yield and Equity Instruments}
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\label{sec:yield}
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\begin{definition}[Yield/Equity Instrument]
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A yield/equity instrument represents a claim on protocol surplus, not on redemption principal backing.
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\end{definition}
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\noindent\textbf{Instances.} xLUX, protocol equity accounting unit.
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\begin{requirement}[Yield Instrument Properties]
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\label{req:yield}
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\begin{enumerate}[nosep]
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\item Absorbs upside from strategy earnings.
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\item May absorb losses after buffer depletion, depending on instrument design.
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\item Never used as collateral equivalence for credit redemptions unless explicitly approved by governance action.
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\end{enumerate}
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\end{requirement}
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The structural separation between credit assets and yield instruments is the primary mechanism by which the protocol avoids characterization as a security or investment contract with respect to credit holders.
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\subsection{Class~3: Security Assets}
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\label{sec:security}
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\begin{definition}[Security Asset]
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A security asset is issued and controlled under the ATS/compliance layer and is not fungible with protocol credit liabilities.
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\end{definition}
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\noindent\textbf{Instances.} Tokenized equity, fund interests, real-world assets.
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\begin{requirement}[Security Asset Properties]
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\label{req:security}
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\begin{enumerate}[nosep]
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\item Compliance-enforced transferability (whitelist, lockup, KYC).
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\item Jurisdictional controls per offering type.
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\item Separate wrapping policy when bridged into Lux (Section~\ref{sec:ats-boundary}).
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\end{enumerate}
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\end{requirement}
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