Tokenomics

HedgeCore introduces a supply model without predefined maximums. Token generation responds dynamically to protocol activities—participant deposits and controlled reward emissions drive sUSD creation.

Genesis and Liquidity Bootstrap

At launch, sUSD supply begins at zero. To establish decentralized exchange liquidity (for example, on PancakeSwap), protocol administrators may pre-generate a designated quantity—potentially 5,000 sUSD—matched with equivalent USDC from treasury reserves.

This bootstrapping executes through rewardMint() or _mint() functions, with adminUnlock() enabling liquidity pool compatibility.

Implementation steps:

• Generate 5,000 sUSD to treasury wallet
• Allocate 5,000 USDC from protocol reserves
• Establish sUSD/USDC pair on DEX
• Authorize DEX router via setDex()

This liquidity provision improves protocol accessibility and establishes pricing benchmarks rather than encouraging speculative activity.

Token Generation Pathways

sUSD enters circulation through:

• depositAndMint() – Direct 1:1 user deposits with enforced time-locks
• rewardMint() – Governance-authorized reward distribution
• airdrop() – Treasury-to-user direct allocations (unlocked state only)
• manualMint (constructor or internal _mint()) – Protocol operations including LP initialization

Zero Inflation Architecture

No algorithmic expansion, reward scaling, or rebase mechanisms exist. Every minting operation requires explicit on-chain execution under protocol governance oversight. This establishes conservative and foreseeable supply progression.

Token Reduction Methods

sUSD exits circulation via:

• earlyRedeem() – Owner-initiated burn with USDC return
• burn(address, amount) – Governance-triggered manual reduction
• Automated burns through DEX transactions with burn-enabled contracts

Burning occurs infrequently, reserved for correction scenarios, liquidity rebalancing, or system-level interventions.

Dual-Token Structure

HedgeCore implements two complementary tokens:

• sUSD (Soul-bound USDC): Immobile, locked yield-bearing positions
• hUSDC (Hedged USDC): Tradeable wrapper providing liquidity access

Participants deposit USDC, receive sUSD positions. For liquidity needs, hUSDC wrapping enables market participation while maintaining yield generation.

Economic Summary

HedgeCore's token economics prioritize utility over speculation. All circulating supply maintains USDC backing at generation, ties to wallet-specific staking commitments, and operates exclusively through transparent protocol functions.