# Treasury Asset Buckets & Rebalancing

The Treasury is two baskets: **deployed assets** (protocol-owned LP of various kinds, target **> 70%** of net assets) and **undeployed singles** (**ETH, USDG, SHYT**, and other assets not yet pooled, target **\< 30%**). **Build POL around Treasury assets rather than relying entirely on short-term incentives.** **Protocol-owned liquidity does not need ongoing extra incentives, so it is sticky liquidity.**

Steady-state target is **two** baskets. Not five. Not a sleeve per ticker.

| Basket | What's in it | Target | Role |
| --- | --- | --- | --- |
| **Deployed assets** | Protocol-owned LP (Stock/HOLI, USDG/HOLI, SHYT/HOLI, …) | **as much as possible > 70%** | Productive reserve, exit, cross-asset routing |
| **Undeployed assets** | Unpooled singles, e.g. ETH, USDG, SHYT | **as much as possible \< 30%** | Ammo for new pools, rebalancing, buffer |

Deployed is the default. RWA enters as **LP external legs**, not idle inventory. Unpooled singles are residual ammo, not the RWA form.

Genesis **may deviate**. After the HOLI/USDG deploy, undeployed leftover is **25%** of opening assets, so deployed is already **above 70%**. Books: [opening balance sheet](/launch/opening-balance-sheet). Do not call the 200k still-undeployed at that moment.

The [dashboard](/treasury-mgmt/transparency) **must disclose both buckets’ amounts and weights**.

Seigniorage-tax USDG arrives **undeployed**. Moving it into LP is the idle-fund <Md expr="w" /> vote. Stock path: [Asset Admission & POL Deployment](/treasury-mgmt/admission). Drifted-LP policy is defined below.

What *names* can sit in either basket (SHYT, USDG, RWAs) is [System Architecture](/treasury). This page is only the deployed / undeployed cut.

## Rebalancing policy

### If undeployed is above 30%

The target is undeployed **\< 30%**. This is not an automatic drain: the team cannot skip the name vote to form a Stock/HOLI book, and cannot use reserves at or below 30% unless a separate governance approval says otherwise. After Genesis the undeployed balance is about 25%, so stock pools wait.

For undeployed assets that later rise above 30% (or a separately approved reserve use), the Team Safe may execute a passed HOLI/Stock deployment or idle-fund allocation. The team does not form a new Stock/HOLI book without the name vote.

### LP rebalancing

Full-range V4 positions still drift as stock, HOLI, and USDG weights move. The policy for when a live position is sufficiently off target to add inventory, withdraw, or use mint-to-swap is **not fixed yet**. Existing asset caps continue to bind. The separation between automatic rules, governance decisions, and Team Safe execution is in [Execution & Control](/risk). Until this trigger is specified in contracts, a signer may still be in the path and the dashboard must disclose that fact.