# Treasury

The Treasury is House of Liquidity's **asset and liquidity hub**. Inside governance-approved scope it builds **POL** around **USDG, community assets, and tokenized RWA**. It does not rent mercenary LPs as the default source of depth.

RWA enters as **LP external legs**, not idle inventory. Protocol LPs are **Uniswap V4 full-range hooks**. The protocol holds **no StockA/StockB** direct LPs.

**HOLI pool fees:** buy HOLI **0**; sell HOLI **1% exit fee**, as **LP fee** **in the pool or extracted to Treasury per the contract**. That 1% belongs to **protocol-owned liquidity**. **Developers take no cut of LP fees.** Official NAV is **1× the external leg**. Fill and slippage affect trade price, not that print.

Do not mix this with the SHYT **tax**. SHYT tax is **5%**, **80% Treasury / 20% development**, for the life of the tax — that **20%** still funds development. **LP fees** do not.

## What it holds

In principle the Treasury can hold:

* **SHYT** — community asset; including SHYT bought with the Treasury's **80%** of the **5%** tax (Phase I *use*; the **80/20** split lasts for the life of the tax). That tax path is not an LP fee.
* **USDG**
* **Tokenized RWA** — governance-approved names, as **LP external legs**, not idle inventory piled on the balance sheet
* **External-asset/HOLI LP** — protocol-owned Uniswap V4 full-range hook shares. The **SHYT/HOLI** (green-channel) 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.
* **Undeployed reserves** — assets not yet sitting in a pool; residual, not the RWA form

What is eligible, and how much of it, is [asset admission](/treasury-mgmt/admission). How cash becomes POL is [POL deployment](/treasury-mgmt/deployment). Deployed vs undeployed targets are [asset buckets](/treasury-mgmt/buckets). How those lines are marked is [NAV & Accounting](/nav/definition). Fee design is [Fee Structure](/treasury-mgmt/amm-fees). This page names the hub.

## Treasury-held HOLI

HOLI that sits in the Treasury — **including HOLI in protocol LP** — is inventory of the house. It sits in <Md expr="S_t^{\mathrm{treas}}" />, not in external supply <Md expr="N_t" />.

If Treasury-held HOLI counted as shares outstanding, the house would be treating a claim on itself as if it were held by the market.

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

That identity is [NAV Definition](/nav/definition).