# Opening Balance Sheet

**Treasury at Genesis start: about $200,000 market value of SHYT.** After-tax buybacks have already accumulated that for the fund. SHYT is **fully circulating**; **market cap = FDV**. Genesis main channel opens **$200,000 USDG** subscription, issued to subscribers at **$1 per HOLI**:

<Eq expr="N_{\mathrm{USDG}} = 200{,}000\ \mathrm{USD} / (1\ \mathrm{USD}/\mathrm{HOLI}) = 200{,}000\ \mathrm{HOLI}" />

The fund pairs **$200,000** market-value SHYT with **another minted 200,000 HOLI** as the 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.

**At Genesis close**, deploy [HOLI/USDG](/launch/usdg-pool) with **100,000 USDG** minting **50,000 HOLI at $2**. While those 50,000 sit in the **Treasury pool**, **outside supply is unchanged**, **NAV is $2**; **undeployed USDG remaining $100,000**. Main-channel subscribers bought at **$1**, against **200,000 outside HOLI** and **$2 NAV** — a **one-time discounted issuance**. The **LP is Treasury-owned**.

**Genesis-stage full issuance total: 400,000 HOLI (of which 200,000 sit in Treasury LP).** That is <Md expr="S_0 = 400{,}000" /> at the [SHYT/HOLI](/launch/genesis-pool) moment — **200,000** to USDG subscribers (<Md expr="N_0" />) and **another 200,000** in Treasury SHYT/HOLI LP (<Md expr="N_{\mathrm{pool}}" />, not in the NAV denominator). The later [HOLI/USDG](/launch/usdg-pool) **50,000** is a **follow-on Treasury LP mint**, still not circulating; then <Md expr="S" /> becomes **450,000** and <Md expr="N" /> stays **200,000**.

**Full-quota NAV denominator: 200,000 HOLI** (total issuance minus Treasury-held, **including HOLI in pools**). This is the only place the docs fully explain the **$1** opening print. Ongoing NAV is [NAV Definition](/nav/definition): <Md expr="N_t = S_t - S_t^{\mathrm{treas}}" />, <Md expr="n_t = A_t / N_t" />. Do not re-derive $2 there.

**Treasury after the main channel closes: about 200,000 SHYT in the pool + 200,000 USDG.** That is the <Md expr="A_0" /> snapshot when the main channel is full. **In the pool** is the SHYT: about 200,000 SHYT (~$200k market value; **market cap = FDV**) in the Treasury-owned [green-channel](/launch/green-channel) SHYT/HOLI pool. The **200,000 USDG** is the main-channel raise, still **undeployed cash** — not in that SHYT/HOLI pool.

**NAV at Genesis full-quota close: $2 per HOLI** = ($200,000 SHYT + $200,000 USDG) / **200,000 outside HOLI**. Main channel **full**, SHYT/HOLI seeded — **before** the follow-on 50k HOLI/USDG mint. That mint keeps <Md expr="N" /> = 200,000 and NAV = **$2**. This label is the **full-quota + $1** close.

Default books below are that **$1** path. If a Dutch auction clears **above $1**, skip this identity and recompute from then outside supply and booked USDG — [Genesis](/launch/genesis).

| | |
| --- | --- |
| Treasury after the main channel closes | **about 200,000 SHYT in the pool + 200,000 USDG** |
| Full-quota NAV denominator | **200,000 HOLI** (total issuance minus Treasury-held, **including HOLI in pools**) |
| NAV at Genesis full-quota close | **$2 per HOLI** = ($200,000 SHYT + $200,000 USDG) / **200,000 outside HOLI** |
| Undeployed reserves after the HOLI/USDG deploy (i.e. after Genesis) | **about $100,000 USDG remaining** |

## Before the print

**Treasury at Genesis start: about $200,000 market value of SHYT.** The fund **injects** that SHYT into the [green-channel](/launch/green-channel) pool. The SHYT/HOLI LP is held by the **House of Liquidity Treasury**; it is **part of project assets**; the **SHYT in it counts in NAV** at **1×** the external leg. Do not 2× the LP.

SHYT is **fully circulating**; **market cap = FDV**. That mark convention is how the Phase II trigger, NAV, and the green-channel SHYT leg are priced. [SHYT Tokenomics](/dual-token/shyt). No extra USDG already in Treasury at this moment.

## Main channel

**Main-channel issuance at full quota: 200,000 HOLI, to USDG subscribers.** Main channel then opens **$200,000 USDG** at the planned **$1 per HOLI**:

<Eq expr="N_{\mathrm{USDG}} = 200{,}000\ \mathrm{USD} / (1\ \mathrm{USD}/\mathrm{HOLI}) = 200{,}000\ \mathrm{HOLI}" />

That 200,000 HOLI is **external**. It is **not** the pool mint.

## Base pool

**Green-channel issuance at full quota: another 200,000 HOLI, pooled with SHYT at $1 per HOLI.** The fund pairs **$200,000** market-value SHYT with **another minted 200,000 HOLI** as the 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. Do not 2× the LP.

**Treasury after the main channel closes: about 200,000 SHYT in the pool + 200,000 USDG.** SHYT is already in the [green-channel](/launch/green-channel) pool; USDG has just arrived and is still undeployed. Do not book the 200,000 USDG into the SHYT/HOLI pool.

## Full-quota NAV denominator: 200,000 HOLI

The denominator is **200,000 outside HOLI** — **outside supply**, not total issuance. At that instant <Md expr="N_0 = S_0 - N_{\mathrm{pool}}" /> is the same as <Md expr="S_0 - S_0^{\mathrm{treas}}" /> — 200,000 outside HOLI, before the HOLI/USDG mint.

<Md expr="A_0" /> is **Treasury after the main channel closes: about 200,000 SHYT in the pool + 200,000 USDG** — **$200,000 SHYT** (Treasury-held, after-tax buybacks, **market cap = FDV**) plus **$200,000 USDG** (main-channel raise), **before** the HOLI/USDG deploy. Official NAV marks the **1× external LP leg**. Do not mark LP at 2×. SHYT/HOLI **opens** at **$1 of SHYT per HOLI**. That is the pair's quote, not a peg.

There is no opening liability line. Management fee accrual starts with HOLI; it is not a Genesis plug.

## HOLI/USDG deploy

**At Genesis close**, deploy HOLI/USDG with **100,000 USDG** minting **50,000 HOLI at $2**. While those 50,000 sit in the **Treasury pool**, **outside supply is unchanged**, **NAV is $2**; **undeployed USDG remaining $100,000**. Main-channel subscribers bought at **$1**, against **200,000 outside HOLI** and **$2 NAV** — a **one-time discounted issuance**.

Same moment as immediately after the main channel plus the [green-channel](/launch/green-channel) SHYT/HOLI pool seeded. Spend **100,000 USDG** at **$2/HOLI**, mint **50,000 HOLI** into the Treasury HOLI/USDG pool. The **LP is Treasury-owned**. Same as the green-channel SHYT/HOLI LP: Treasury-held; those 50,000 stay in Treasury LP (not in the NAV denominator); the USDG external leg counts in NAV at **1×**. Do not 2× the LP.

<Eq expr="100{,}000^{\mathrm{USDG}} / 2 = 50{,}000^{\mathrm{HOLI}}" />

<Md expr="S" /> rises by 50k; <Md expr="S^{\mathrm{treas}}" /> rises by 50k; <Md expr="N" /> unchanged (still 200k); **NAV still $2**. **Full-quota NAV denominator stays 200,000 HOLI** — do not retitle it 250k.

**Undeployed reserves after the HOLI/USDG deploy (i.e. after Genesis): about $100,000 USDG remaining.** Same remaining cash: **200,000 USDG** in via the main channel, then **100,000** into HOLI/USDG — **100k undeployed** (**25%** of <Md expr="A_0" />). After this deploy, Genesis has ended. Do not call the 200k still-undeployed at this moment.

After deploy, $100k USDG moves into the HOLI/USDG **external leg**; about $100k stays undeployed. External assets are still $400k. NAV is still $2. Do not mark that LP at 2×.

## Auction above $1

If the [main-channel](/launch/genesis) Dutch auction clears **above $1**, do not keep the $1 identities above as the books. Book the main-channel **actual raise** and **issued HOLI** at the **clearing result**. Then recompute NAV from then **outside supply** <Md expr="N_t" /> and **USDG booked in**:

<Eq expr="n_t = \frac{A_t}{N_t}" />

<Md expr="A_t" /> includes the booked USDG plus the marked SHYT (and any other external assets then). <Md expr="N_t" /> is circulating HOLI — the subscriber mint at the clearing size, not the Treasury HOLI in the SHYT/HOLI pool. No second identity.

The SHYT/HOLI pool still opens at **$1 of SHYT vs 1 HOLI**. That quote is the pair, not NAV.