# Genesis & Opening Balance Sheet

Genesis starts with a 200,000-OHOLI allocation from the pre-Genesis farm and a USDG main channel. During the protected 24-hour period, one OHOLI plus one USDG writes one HOLI credit (`holiCredit`); afterward, remaining main-channel inventory opens to USDG public purchase on the same credit. **HOLI is not transferred until Treasury `deployGenesisHoliUsdgPool()`.** The long-lived [SHYT Green Channel](/launch/green-channel), where users buy HOLI through the SHYT/HOLI pool, opens alongside it. This is the single source for the subscription rules, HOLIGenesis, the two pre-Genesis contracts (`PreGenesisFarm` and `OHOLI`), default Genesis pool sizes, HOLI supply split, and the **illustrative $2 opening NAV at the $200,000 SHYT trigger mark**. The Phase I trigger is [Phase I](/launch/phase-i). Ongoing NAV uses [NAV Definition](/nav/definition):

<Eq expr="N_t = S_t - S_t^{\mathrm{treas}} - G_t - U_t,\qquad n_t = \frac{A_t}{N_t}" />

At Genesis <Md expr="U_0=0" />. <Md expr="G_t" /> is unsold HOLIGenesis inventory (`unsoldHoli()`), not outstanding `holiCredit`. At full quota <Md expr="G_0=0" />, so the opening arithmetic below is total supply minus Treasury inventory.

## Main channel rules and eligibility

| Item | Rule |
| --- | --- |
| Genesis allocation | **200,000 OHOLI**, minted by `OHOLI` and allocated by `PreGenesisFarm` |
| Protected period | **24 hours** |
| Protected-period price | **1 OHOLI + 1 USDG = 1 HOLI credit** |
| Public-period price | **1 USDG = 1 HOLI credit** |
| Public-period cap | **$1,000 USDG per address** |
| HOLI delivery | After `deployGenesisHoliUsdgPool()`, `withdraw()` pays `holiCredit` |

These are **two contracts**, not one snapshot ERC-20. The Farm and OHOLI mechanism is documented on [Pre-Genesis Farm](/launch/pre-genesis-farm). The sale contract is [HOLIGenesis](#holigenesis).

## HOLIGenesis

HOLIGenesis (`Genesis.sol`) is the USDG main channel. `exercise` and `buy` take USDG — and matching OHOLI in the first 24 hours — and write `holiCredit`. They do **not** transfer HOLI. Treasury mints the 200,000 HOLI inventory onto Genesis at `initGenesis`; it stays there as escrow until `withdraw`.

| Call | When | Effect |
| --- | --- | --- |
| `exercise(usdgAmount)` | First 24 hours only | 1 OHOLI + 1 USDG → 1 HOLI credit. Reverts after the protected window. |
| `buy(usdgAmount)` | Whole subscription window | Same credit. Protected phase still sends OHOLI to the dead address. Public phase is USDG only, with the $1,000 per-address cap. |
| `withdraw()` | After Treasury `deployGenesisHoliUsdgPool()` | Pays `holiCredit[msg.sender]` in HOLI. `holiWithdrawOpen()` is true once USDG is a registered mint-to-swap pool. |

There is no off-chain whitelist and no second per-user HOLI quota: the held OHOLI balance is the protected-period right. Outstanding credits (`totalHoliCredit`) are user-owned and already count as external supply. `unsoldHoli()` is leftover inventory on Genesis and is <Md expr="G_t" /> in [NAV](/nav/definition). USDG is forwarded to Treasury on subscribe.

The channel is first-come within each period and closes when all 200,000 HOLI have been credited or its overall subscription window ends. There is no auction and the issue price never changes. The $1 figure is a Genesis subscription price, not a peg or a redemption promise. Subscriber credits are the external lot; they are not the Treasury-side pairing inventory. OHOLI is only a protected-period purchase right; it is not redeemable after the public period begins.

## Pre-Genesis Farm and OHOLI

`PreGenesisFarm` is the pre-launch deposit and allocation contract; `OHOLI` is the separate fixed-supply ERC-20 Genesis right it distributes. The Farm ends before Genesis starts, and users claim their OHOLI from it. Its pool Quotes, token-time weighting, withdrawal model, WL boost, partner pools, finalization checks, and claim flow are documented on [Pre-Genesis Farm](/launch/pre-genesis-farm).

## Starting assets

At Genesis start, the Treasury holds about **$200,000 market value of SHYT** bought back with its 80% share of the SHYT tax. This is not a separately minted team allocation. There is no extra USDG already in the Treasury; USDG arrives through the main channel.

SHYT is fully circulating, so market cap equals FDV for this mark. The Treasury injects the SHYT into the first protocol-owned pool rather than leaving the reserve idle.

## Main-channel user mint

At full quota and the planned price, subscribers contribute **$200,000 USDG** and receive **200,000 HOLI credits**. Those credits are already external supply. `withdraw` pays the HOLI after the HOLI/USDG pool is live:

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

This user lot is separate from all Treasury-side pairing inventory.

## SHYT/HOLI pool

The Treasury pairs its approximately **$200,000 of SHYT** with **200,000 newly minted Treasury-side HOLI**:

| Side | Opening amount |
| --- | --- |
| SHYT external leg | About **$200,000**, sourced from Treasury tax-funded buybacks |
| HOLI leg | **200,000 HOLI**, minted into the Treasury-owned LP |
| Owner | House of Liquidity Treasury |
| Opening quote | **About $1 of SHYT per HOLI**, determined by SHYT held when Genesis triggers |

The LP is a project asset, not rented liquidity. The SHYT external leg counts in NAV. The HOLI leg belongs to <Md expr="S_t^{\mathrm{treas}}" /> and is excluded from external supply <Md expr="N_t" />.

The pool quote is not NAV and not a peg. After opening, users buy HOLI with SHYT along the AMM curve; the quote moves with trades. The standing participation path is the [SHYT Green Channel](/launch/green-channel).

For the two Genesis lots:

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

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

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

## Full-quota opening NAV at the $200,000 trigger mark

If Genesis triggers at approximately **$200,000 of SHYT**, then after the main channel closes and the SHYT/HOLI pool is seeded, the Treasury holds about **$200,000 of SHYT** in the protocol-owned pool and **$200,000 USDG** from subscribers. If more SHYT is present at trigger, the SHYT/HOLI opening quote and opening NAV are correspondingly higher.

Only external asset legs enter the numerator. Only HOLI outside the Treasury enters the denominator:

<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}" />

Therefore total on-chain HOLI is **400,000**, of which **200,000** sits in the Treasury-owned SHYT/HOLI LP and **200,000** is external. At the $200,000 SHYT trigger mark, NAV is **about $2 per external HOLI**.

This result does not come from valuing the LP at 2×. The LP contributes only its SHYT external leg. The $2 result comes from $400,000 of external assets divided by 200,000 external HOLI.

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

## HOLI/USDG pool

Immediately afterward, the Treasury deploys **$100,000 USDG** and mints **50,000 Treasury-side HOLI at $2**:

| Item | Amount |
| --- | --- |
| USDG external leg | **$100,000** |
| HOLI pairing inventory | **50,000 HOLI** |
| Owner | House of Liquidity Treasury |
| Undeployed USDG remaining | About **$100,000** |
| External HOLI after deployment | Still **200,000** |
| NAV after deployment | Still **$2** |

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

Total supply rises to **450,000**, while Treasury-held supply rises by the same 50,000. External supply remains **200,000**.

Moving USDG into the pool changes location, not total external assets: $100,000 becomes the pool external leg and $100,000 remains undeployed. Total external assets remain $400,000, NAV remains $2, and undeployed assets are approximately **25%** of opening assets.

**After this deployment, Genesis has ended. The undeployed balance is about $100,000—not the full $200,000 received by the main channel.**

This is an [LP-pairing mint](/supply/paths#genesis-and-lp-pairing-mint), not a user sale or staking inflation. After opening, HOLI/USDG trades along its curve; neither $1 nor $2 is a permanent peg.

The pool is deployed through Treasury's permissionless `deployGenesisHoliUsdgPool()` function. It becomes callable once the subscription window has closed **and** the full 200,000 HOLI Genesis allocation has been subscribed. The function can run once, mints the 50,000 HOLI Treasury inventory, and takes exactly 100,000 USDG from the recorded Genesis raise. That same call opens HOLIGenesis `withdraw()`: credited HOLI can leave Genesis only after this pool exists.

## Why LPs are counted at 1×

Official NAV includes only each pool's external-asset leg. HOLI inside protocol LP is already excluded from the denominator as Treasury inventory, so adding it to the numerator would count the protocol's own claim twice. The general derivation is [NAV Definition & POL Accounting](/nav/definition#pol-accounting).