# SHYT/HOLI Pool

**SHYT green channel means buying HOLI at market through this SHYT/HOLI pool.** Initial pool: **$1 of SHYT vs 1 HOLI**; thereafter price **rises along the curve with buy flow**. That is a **definition**, not a second USDG sale. Contrast the [main channel](/launch/genesis) **$200,000 USDG** subscription. [Green channel](/launch/green-channel).

**HOLI pool type:** Uniswap V4 full-range hook.

**HOLI pool fees:** buy HOLI **0**; sell HOLI **1% exit fee**, as **LP fee**. That 1% counts as protocol assets. Fees **automatically accrue in the LP** **or** are **auto-collected to the Treasury by the contract**. Fill and slippage affect trade price, not official NAV.

**Green-channel pool ownership:** this SHYT/HOLI LP is held by the **House of Liquidity Treasury**; it is **part of project assets**; the **SHYT in it counts in NAV**. Official NAV is **1× the external (SHYT) leg** only. HOLI in the pool is in <Md expr="S_t^{\mathrm{treas}}" />, out of <Md expr="N_t" />, not added to <Md expr="A_t" />. Do not 2× the LP.

**SHYT-side contribution:** the fund injects **about $200,000** market value of SHYT from **after-tax buybacks** into this pool.

**Treasury after the main channel closes: about 200,000 SHYT in the pool + 200,000 USDG.** The SHYT (~$200k market value; **market cap = FDV**) is this LP's external leg. The **200,000 USDG** is undeployed main-channel cash — **not** paired into this SHYT/HOLI pool.

**SHYT mark:** SHYT is **fully circulating**; **market cap = FDV**. That convention prices this SHYT leg, the Phase II trigger, and NAV. [SHYT Tokenomics](/dual-token/shyt).

**Green-channel issuance at full quota: another 200,000 HOLI, pooled with SHYT at $1 per HOLI.** Together with **main-channel issuance at full quota: 200,000 HOLI to USDG subscribers**, **Genesis-stage full issuance total: 400,000 HOLI (of which 200,000 sit in Treasury LP).** The fund pairs **$200,000** market-value SHYT with **another minted 200,000 HOLI** as this green-channel pool:

<Eq expr="N_{\mathrm{pool}} = 200{,}000" />

<Eq expr="S_0 = 400{,}000" />

<Eq expr="N_0 = S_0 - N_{\mathrm{pool}} = 200{,}000" />

<Eq expr="A_0 = 200{,}000^{\mathrm{SHYT}} + 200{,}000^{\mathrm{USDG}} = 400{,}000\ \mathrm{USD}" />

<Eq expr="\operatorname{NAV}_0 = 400{,}000 / 200{,}000 = 2\ \mathrm{USD}/\mathrm{HOLI}" />

This <Md expr="N_{\mathrm{pool}}" /> mint is Treasury-held SHYT/HOLI — **not** subscriber HOLI. <Md expr="N_0" /> is **outside supply**. Official NAV marks the **1×** external legs. [Opening balance sheet](/launch/opening-balance-sheet).

**Full-quota NAV denominator: 200,000 HOLI** (total issuance minus Treasury-held, **including HOLI in pools**). The 200,000 in this LP sit in <Md expr="S_0^{\mathrm{treas}}" />, so at this instant <Md expr="N_0 = S_0 - N_{\mathrm{pool}}" /> is the same as <Md expr="S_0 - S_0^{\mathrm{treas}} = 200{,}000" />.

Genesis does not leave the Phase I SHYT reserve idle. It deploys it as the first protocol-owned pool.

## The pair

| Side | Size |
| --- | --- |
| SHYT (external asset) | **about $200,000** (after-tax buybacks) |
| HOLI (Treasury-minted) | **200,000 HOLI** (pool mint, not the **200,000 HOLI to USDG subscribers**) |
| Owner | **House of Liquidity Treasury** |

The LP is held by the **House of Liquidity Treasury**. It is **part of project assets**, not a rented farm. The 1% sell-HOLI exit fee is an **LP fee**: it **accrues in the LP** or is **auto-collected to the Treasury**. This is SHYT/HOLI POL.

## Initial SHYT/HOLI price

$200,000 of SHYT against <Md expr="N_{\mathrm{pool}} = 200{,}000" /> HOLI sets the pool at **$1 of SHYT vs 1 HOLI**.

That is the **pool's** opening quote. It is not NAV, and it is not a peg. Opening NAV is **$2** when the [main channel](/launch/genesis) is at **$1 / HOLI** (auction off, or clearing stays $1), because USDG from that channel sits in the Treasury as well — see the [opening balance sheet](/launch/opening-balance-sheet). If the auction clears above $1, raise and issued HOLI follow the clearing result; NAV is recomputed. After open, this pair's price is the curve. The [SHYT green channel](/launch/green-channel) buys HOLI out of this pool with SHYT; thereafter price **rises along the curve with buy flow**.

<Md expr="N_{\mathrm{pool}}" /> is **Treasury-held**. It sits in <Md expr="S_t^{\mathrm{treas}}" />, not in <Md expr="N_t" />. It is a [Genesis](/supply/genesis) LP mint, then the same species as [LP pairing](/supply/lp-pairing).

How SHYT tape became this reserve is the [value flow](/dual-token/value-path). This page is only the first base pool Genesis opens. After the main channel, undeployed USDG is **$200,000** (**50%** of <Md expr="A_0" />) — that 200k is still undeployed **only** until HOLI/USDG. The next base pool is [HOLI/USDG](/launch/usdg-pool): **100,000 USDG** in. **Undeployed reserves after the HOLI/USDG deploy (i.e. after Genesis): about $100,000 USDG remaining** (**25%** of <Md expr="A_0" />). **Stock pools do not open here.**