SBELM

SBELM — FX Stability System (V2)

1. Premise

SBELM FX is an on-chain financial infrastructure designed to build a deterministic, verifiable, and structurally disciplined currency exposure system.

It is not a yield platform. It is not a trading interface. It is not a traditional stablecoin. It does not promise returns.

It is an internal currency exposure and accounting protocol deployed on Ethereum and governed exclusively by explicit and immutable smart contract rules.

2. The Problem

The crypto ecosystem relies almost entirely on centralized USD-denominated stablecoins.

  • custody risk
  • regulatory risk
  • freezing risk
  • counterparty risk

Even when collateralized, ultimate control remains off-chain. SBELM FX is designed to reduce systemic dependence on centralized issuers by establishing a fully on-chain and verifiable accounting structure.

3. System Objective

The system enables users to obtain synthetic EUR/USD exposure while remaining fully on-chain.

USDC is currently used as the entry asset for liquidity and execution efficiency. However, the Treasury is not structurally USD-only: it can hold both USDC and EURC under deterministic Core-controlled logic.

4. Foundational Principle

Accounting precedes performance.

SBELM prioritizes building a coherent and verifiable accounting structure before any economic optimization.

No emissions. No artificial APR. No discretionary yield. Only deterministic redistribution of protocol-generated fees.

5. On-Chain Architecture

5.1 Core Vault (V2)

  • Manages deposits and redemptions
  • Mints and burns model tokens (M1–M5)
  • Applies deterministic entry and exit fees (0.5% / 0.5%)
  • Maintains per-model USD and EUR accounting
  • Validates oracle data and stale protection
  • Triggers deterministic hedge logic for full exposure models

Lifecycle: Deploy → Wire → Lock → Permanent Immutability.

5.2 Treasury (V2)

Custodies USDC and EURC. No manual withdrawals. All movements and swaps are callable only by Core. Core assignment locks permanently and admin rights are revoked.

5.3 Oracle

The system uses a Chainlink EUR/USD feed with enforced decimals and stale protection. Transactions revert if oracle data is invalid or outdated.

5.4 Exposure Models

  • Model 1 → 50% EUR exposure — capped upside
  • Model 2 → 25% EUR exposure — capped upside
  • Model 3 → 0% EUR exposure — no FX upside
  • Model 4 → 75% EUR exposure — full upside (hedged)
  • Model 5 → 100% EUR exposure — full upside (hedged)

All five models are deployed, active, and fully wired to the Core.

6. Operational Flow

Deposit → entry fee → model token mint → Treasury custody.

Redemption → model token burn → deterministic NAV calculation → exit fee → Treasury payout.

For Models 4 and 5, hedge logic may trigger when global EUR exposure exceeds the deterministic threshold (300 USDC equivalent).

7. Staking and Fee Redistribution

The protocol applies a 0.5% fee on deposit and 0.5% on redemption.

  • 20% to developer wallet
  • 80% redistributed to stakers

The staking pool accepts Model 1, Model 2, and Model 3 tokens. Rewards are distributed in FEE_TOKEN using deterministic accRewardPerShare accounting.

If no stakers exist, fees accumulate until staking resumes. No guaranteed yield exists.

8. Hedging Logic

Hedge execution applies only to full exposure models (4 and 5).

When aggregate EUR exposure exceeds 300 USDC equivalent, Core may instruct Treasury to swap via Uniswap V3 under deterministic slippage and deadline constraints.

No human intervention. No discretionary market timing.

9. Immutability

  • No proxy contracts
  • No upgradeability
  • No pause mechanisms
  • No administrative backdoors
  • Core, Treasury and Staking permanently locked

Any change requires full redeployment.

10. Transparency

All contracts are deployed on Ethereum mainnet and verifiable.

Users can independently verify:

  • Contract code
  • Lock state
  • Oracle configuration
  • Fee parameters
  • Treasury balances (USDC / EURC)
  • Model supply and accounting

11. Current Status

SBELM FX V2 is deployed on Ethereum mainnet. Core configured and locked. Treasury and Staking wired and locked. Models 1–5 active. Oracle validated.

12. Final Note

SBELM FX does not ask for trust. It asks for verification.

Deterministic accounting. Immutable execution. On-chain transparency.