DSUP · § 06

The vault

A fixed-price swap vault with a 15% spread and an automatic reserve-floor guard, deliberately simpler than a curve-priced AMM until there is real volume to fit one against.

No custom AMM in v1. A vault-swap contract delivers ~90% of the utility at ~20% of the audit surface.

ActionPrice
SWAP — next specimen out of the vault, blind, FIFOX $DSUP + 0.0005 ETH
SNIPE — pick an exact specimen number from inventory1.15X $DSUP + 0.0005 ETH
DEPOSIT — send a specimen in, receive tokens0.85X $DSUP

The 15% spread each way is the protocol's margin and the reason the vault stays solvent. Specimens in TUN or REHYDRATING cannot be deposited — the state guard is enforced in the token contract, not the vault, so it cannot be routed around.

Solvency

X is fixed in v1, not curve-priced. The failure mode of a fixed price is that when $DSUP appreciates hard, depositing a floor specimen becomes more attractive than selling it, and the vault fills with inventory while draining tokens.

Guard: inventory caps. If vault token reserves fall below 20% of their opening balance, deposits close automatically until reserves recover through swaps. One conditional, no oracle, no manipulation surface. Curve pricing is a v2 conversation and only after we have real volume data to fit against.

The state guard living in the token contract rather than the vault matters specifically because it means a future vault v2, or any third-party contract, inherits the restriction automatically — there is no path where a new deposit venue accidentally accepts a tun specimen because it forgot to re-implement the check. The 20% reserve floor is a single require on the deposit path reading the vault's own token balance; it has no external dependency, which is deliberate, since an oracle-fed floor is itself a manipulation surface at the size this vault will run at pre-mainnet-audit. The 15%/85% asymmetry (snipe premium vs. deposit discount) is calibrated so that blind SWAP remains the rational default action and SNIPE is a paid convenience, not the other way around.

DSUP is an experimental on-chain protocol. Distributions are rewards-program airdrops funded by protocol fee revenue — not corporate dividends, equity ownership, or shareholder rights. Token-bound account contents are controlled by the specimen owner and may be withdrawn or lose value at any time. Nothing here is financial advice.