Depositing

Depositors fund the night. They put USDC in a pool; the pool pays sellers their advance, sells the stocks at the open, and keeps the fee.

What the pool does#

The pool never decides whether to buy a stock, and never holds one through a session. It holds stocks only between a close and the following open.

Pool shares#

lend me your dollars until morning.

When you deposit USDC you receive pool shares. A share is a fixed fraction of everything the pool owns.

share price = pool assets ÷ shares outstanding
your value  = your shares × share price

Fees raise the pool's assets without creating new shares, so the share price rises. Losses, if any reach the pool, lower it. You do not claim fees separately: they are in the share price.

Planned share standard: ERC-4626 todo.

How fees accrue#

Each settled sale pays a fee. The fee is split, and the depositors' part is added to the pool:

Fee income depends entirely on how much sellers sell. A quiet night produces little; a night with no sellers produces nothing. The schedule sellers pay is in Fees.

Idle USDC on Morpho#

Between sessions the pool's USDC is not needed. Rather than sit idle, it is supplied to Morpho and withdrawn before the next night.

Vault or market used: not decided todo

Two things follow.

• Whatever Morpho pays is variable and set by its own lending market. It is not set by EVE and is not promised.
• It adds Morpho's risks to the pool: smart-contract risk, the risk of bad debt in the market used, and the risk that USDC cannot be withdrawn at the moment it is needed. See Risk and safeguards.

Withdrawals: the queue at settlement#

You can ask to withdraw at any time. You cannot always be paid at once, because at night part of the pool's USDC is out with sellers.

1. Request. You ask to redeem some or all of your shares.
2. Queue. The request waits until the next settlement.
3. Settlement. The pool sells the night's stocks, pays the sellers, and serves the queue from the USDC that came back, at the share price after that settlement.

If you request during a session, when the pool is fully in USDC, the wait is short. If you request on a Friday evening, you are paid on Monday morning.

Order in which the queue is served: not decided todo

Capacity#

The pool can only advance USDC it has. Two ceilings limit how much is sold on a given night:

• the per-ticker volume cap, 5% todo of DEX depth, which protects the pool's ability to sell at the open;
• the pool's own utilization ceiling: not decided todo.

What depositors earn, and what they risk#

Earn. Their share of the fees paid by sellers, plus whatever idle USDC earns on Morpho.

Do not take. A directional view on any stock. The pool pays out against the price fixed at the open, and the settlement price is the lower of the oracle average and what the pool really realized. In a normal night the pool gets back the advance plus the fee, whatever the stock did.

Do take.

• Gap risk beyond the haircut and the reserve. If a stock opens lower than the haircut can absorb, the pool has advanced more than it recovers. The reserve pays first. If the reserve is empty, depositors take the loss.
• Correlated gaps. A market-wide drop over a weekend hits every ticker on the same morning.
• Execution risk. The pool has to sell real size at the open.
• Oracle, smart-contract, Morpho and USDC risk.
• Liquidity. Withdrawals wait for a settlement.

Each is explained in Risk and safeguards. Read that page before depositing, once there is something to deposit into.

In the simulator#

On the deposit tab you can put pretend USDC into a pretend pool and skip to the open. The ledger prints the session's simulated fees and your share of them. The assumptions (pool size, seller volume) are settings in the config file and are shown next to every figure.