# Treasury Asset Valuation & Price Sources

Every line in <Md expr="A_t" /> is a quantity times a USDG mark. HOLI itself is not a line in <Md expr="A_t" />. Formal NAV is <Md expr="n_t = A_t / N_t" />. The NAV contract accepts no caller-supplied decimal or price parameters for registered ERC-20s: it reads each token's `decimals()` itself.

The protocol holds **only governance-approved assets**. Except **SHYT**, approved names are **blue chips**, marked at the **effective on-chain price of the corresponding /HOLI pool**. USDG numeraire via HOLI routes. Official NAV is **1×** the external LP leg. The protocol has **no liabilities**.

## Price routes

The Treasury and NAV contracts read balances, LP positions, and marks automatically; the dashboard reads that on-chain state. The system does not rely on StockA/StockB direct LPs. Each external asset is priced through the corresponding held **external asset/HOLI** pool, then converted to USDG through HOLI/USDG:

* Stock/HOLI for admitted stocks;
* SHYT/HOLI for SHYT;
* USDG/HOLI for the canonical USDG route.

If HOLI-routed relative prices diverge by more than transaction costs, arbitrageurs can buy the cheap route and sell the rich one until the routes reconverge. This keeps routes mutually calibrated under normal market conditions, but it is not proof that any one quote is objectively true.

### Spot market price and TWAP marks

The HOLI/USDG V4 Hook exposes both primitives directly:

* **Spot market price** <Md expr="P_m" /> — current `slot0`, exposed through the Hook's `spot` / `holiUsdgPrice` path. It is used for the emission premium gate, mint-to-swap premium gate, and the market component of seigniorage tax.
* **TWAP mark** — the Hook's `consult` observation. `TreasuryNav` reads the canonical HOLI/USDG TWAP directly from the Hook and converts it to USDG per HOLI for NAV.

Other ERC-20 routes use their asset/HOLI Hook TWAP, then the HOLI/USDG TWAP. USDG is fixed at 1; native ETH uses the configured ETH/USD Chainlink feed. There is no separate HOLI/USDG TWAP adapter. `TreasuryNav` is a stable proxy address: sHOLI keeps that address permanently, while support for new approved position types can change only through the DEV-Deployer-proposed, dev-Team-multisig-executed upgrade path.

### Invalid marks

An asset mark is undefined if there is no valid HOLI route, no oracle history covering the configured TWAP window, or (for native ETH) a non-positive or structurally invalid Chainlink answer. The asset is dropped from <Md expr="A_t" /> rather than manually overridden. A zero external HOLI supply makes the NAV call revert. The contract does not infer a price from a direct balance alone.

## USDG

<Eq expr="V_{\mathrm{USDG}} = q_{\mathrm{USDG}}\, p_{\mathrm{USDG}}" />

<Md expr="p_{\mathrm{USDG}} = 1" /> in USDG native units. USDG is a fixed $1 numeraire in the contract, so no caller provides its decimals or a USDG oracle.

## Native ETH

Native ETH has no ERC-20 address. The registry represents it as `address(0)`, reads the Treasury's native balance, and values it through the configured ETH/USD Chainlink feed. The contract uses the latest valid positive Chainlink answer; a round is not rejected merely because no newer update was needed.

## SHYT

<Eq expr="V_{\mathrm{SHYT}} = q_{\mathrm{SHYT}}\, p_{\mathrm{SHYT}}" />

<Md expr="p_{\mathrm{SHYT}}" /> is the **effective on-chain price** of the corresponding SHYT/HOLI pool (USDG numeraire via held HOLI/USDG). SHYT is **fully circulating**; **market cap = FDV**. That mark convention is how NAV, the Phase II trigger, and the green-channel SHYT leg are priced. [SHYT Tokenomics](/shyt). SHYT legs in <Md expr="A_t" /> are marked at that market. The 1% sell-HOLI fee and slippage affect the **fill**, not <Md expr="n_t" />.

## Stock

<Eq expr="V_{\mathrm{Stock}} = q_{\mathrm{Stock}}\, p_{\mathrm{Stock}}" />

<Md expr="p_{\mathrm{Stock}}" /> is the **effective on-chain price** of the corresponding Stock/HOLI pool, in USDG via HOLI routes. Same held-pool rule as SHYT. No StockA/StockB mark. Approved stock names are **blue chips**.

## RWA

<Eq expr="V_{\mathrm{RWA}} = q_{\mathrm{RWA}}\, p_{\mathrm{RWA}}\, (1-\delta)" />

<Md expr="p_{\mathrm{RWA}}" /> is the HOLI-route USDG price when a route exists. The current contract does not accept a discretionary <Md expr="\delta" /> haircut: an RWA without a valid on-chain HOLI route is omitted from the automatic mark rather than manually discounted.

## LP external leg

For protocol-owned pool <Md expr="j" />, the external-asset quantity implied by the protocol's LP share is:

<Eq expr="q_{j,t}^{X} = \alpha_{j,t}\, R_{j,t}^{X}" />

The external-leg mark is:

<Eq expr="V_{j,t}^{\mathrm{ext}} = q_{j,t}^{X}\, p_{j,t}^{X}" />

That 1× mark is what enters <Md expr="A_t" /> — including a SHYT, USDG, or admitted-stock leg at the **effective on-chain price** of the held /HOLI pool. HOLI in the pool is already out of <Md expr="N_t" />; do not add it to the numerator. How the legs sum is [NAV definition & POL accounting](/nav/definition).