A floor that only
ratchets up.
A bonding curve token where the reserve is backed by tokenized $BOT exposure. Each token carries a hybrid, share-denominated floor that ratchets upward from trading fees and leverage revenue.
Table of Contents
Overview
The protocol issues a token on a bonding curve, which mints tokens against an on-chain reserve and exposes live reserve and supply figures. The distinguishing feature is the reserve asset. Instead of holding a passive stablecoin, the reserve holds tokenized exposure to RoboStrategy (Nasdaq: $BOT), a closed-end investment fund providing concentrated exposure to robotics and physical AI companies, accessed on-chain through Ondo Global Markets.
Each token represents a hybrid claim on the reserve. A guaranteed minimum number of $BOT shares forms the floor, which is fixed at mint and never decreases in share terms. Above the floor sits a pro rata claim on value accrued from trading activity. The floor share count ratchets upward over time, funded by the spread the curve charges on every trade, including arbitrage.
New tokens are minted at a NAV-inclusive price so that incoming holders pay for the accrued value they join and do not dilute existing holders.
The design requires no external backstop capital. Strategy drawdowns are absorbed by the share-denominated nature of the floor, which guarantees a $BOT share count rather than a dollar value. Holders carry honest $BOT exposure with a protected share floor underneath, not a put option against the protocol.
The Reserve Asset
$BOT is fundamentally different from a stablecoin reserve. These properties drive the entire design.
| Property | Implication |
|---|---|
| Closed-end fund | Fixed share count; trades at a market price that can diverge from net asset value at a premium or discount. There is no daily creation or redemption at NAV. |
| Premium harvesting | $BOT issues shares above NAV to accumulate robotics holdings, so it already trades at a reflexive premium or discount. Wrapping a curve around it adds a second premium layer. |
| Newly listed & volatile | $BOT listed in May 2026, is small, and has already moved sharply. The reserve is high-volatility, not stable. |
| Accessed via Ondo | $BOT is held on-chain as a tokenized security through Ondo Global Markets, backed one-to-one by the underlying held with a regulated custodian. |
| Regulated security | A token redeemable for $BOT exposure is very likely itself a security in most jurisdictions. Legal posture is a gating dependency. |
The dollar value of this reserve can fall significantly. The share-denominated floor guarantees a $BOT share count, not a dollar amount. There is no guaranteed dollar floor and no guaranteed rising dollar floor, because $BOT itself can decline.
Ondo Integration
The reserve acquires and holds $BOT exposure through Ondo Global Markets, which issues tokenized US equities and ETFs backed one-to-one by the underlying security. The protocol entity completes KYC for primary mint and redeem access, while end users buy the protocol token rather than the tokenized $BOT directly, so they receive $BOT economic exposure through the floor without each needing Ondo KYC.
3.1 Pricing oracle
Floor accounting reads a Chainlink total return feed for the tokenized $BOT. The feed combines the underlying market price with a multiplier that tracks dividend reinvestment and corporate action adjustments, so the token value reflects total return rather than raw price. The protocol does not build separate NAV plumbing.
3.2 Feed pause handling
During corporate actions, the feed freezes and only resumes once the underlying price and the multiplier realign. The protocol must detect a paused or stale feed and halt or queue mint and redeem rather than transacting on a frozen price.
This is a required code path, not an edge case, because $BOT is a newly listed fund subject to distributions and other corporate actions.
3.3 Conversion timing
The reserve fills in stablecoin at the moment of a buy, then converts to tokenized $BOT. The backing becomes $BOT-denominated only after the conversion executes, and the number of $BOT shares backing the supply depends on the execution price. Ondo provides low-slippage execution by tapping the underlying market liquidity.
The protocol must choose between:
| Strategy | Benefit | Cost |
|---|---|---|
| Continuous conversion | Keeps floor fully $BOT-backed at all times | Higher transaction costs |
| Batched conversion | Lower transaction costs | Reserve part-stablecoin between batches |
Economic Model
4.1 Two-component claim
Every token represents two stacked claims on the reserve:
- Floor component - a guaranteed minimum of N $BOT shares, fixed at mint. This share count never decreases for that token.
- Upside component - a pro rata claim on value accrued above the aggregate floor, through which $BOT appreciation and trading activity flow to holders.
Redemption pays the sum of both, valued at the redemption-time $BOT price:
4.2 NAV-inclusive minting
New tokens are priced at the floor value plus the current surplus per token, so incoming holders pay for the accrued value they join. Minting is neutral to existing holders: a new minter brings their own backing and receives the current floor-per-token ratio, leaving that ratio unchanged.
4.3 Loss waterfall
On a $BOT drawdown, losses apply to the surplus pool first until it is exhausted, then to the floor reserve. Because the floor is denominated in shares, a drawdown reduces the dollar value of each token's floor shares, but never the guaranteed share count.
How the Floor Ratchets
The floor has two meanings that must be kept separate.
5.1 Dollar value of the floor
Each token's floor is a fixed number of $BOT shares. The dollar value of that fixed share count moves with $BOT's price, rising when $BOT rises and falling when $BOT falls. This is passive exposure and requires no protocol action.
5.2 Share count of the floor
The guaranteed share count per token ratchets upward, and only upward, when the protocol uses trading revenue to buy additional $BOT shares and assign them to the floor. A ratchet, once applied, is irreversible. Two sources feed it:
The floor share count only ratchets up. Its dollar value rises when $BOT rises and when ratchets occur. It is not accurate to promise a guaranteed rising dollar floor, because $BOT can fall. Keep these two statements separate in all holder-facing material.
Volume Dependence
The ratchet is real, but it scales with trading throughput. This is the single most important property to state honestly, because the model behaves very differently across volume regimes.
| Weekly Volume | Floor outcome over one year (flat $BOT) |
|---|---|
| Low (~$2k mint, $1.5k redeem) | Floor barely moves and can slightly underperform holding $BOT, because thin fee revenue cannot outrun redemptions plus the non-BOT buffer drag. |
| Medium (~$20k mint, $18k redeem) | Floor ratchets roughly 90%, beating a direct $BOT hold by a wide margin. |
| High (~$100k mint, $95k redeem) | Floor ratchets several multiples as churn compounds into a stable token base. |
Throughput beats net inflow. High churn, large volume on both buy and sell sides, ratchets the floor far more than large net deposits. Churn generates spread on both sides while keeping supply roughly stable, so the ratchet compounds into a small token base. Arbitrage is high-throughput churn by nature, which is why it is the intended engine.
If volume is thin, the floor still protects principal in share terms, but the ratchet is small and the token is roughly equivalent to holding $BOT directly minus the buffer drag. This caveat belongs in every honest description of the mechanism.
Bonding and the Supply Cap
Minting stops permanently once the curve has minted its full sellable supply. From that point the curve only buys back, and the token trades on secondary venues above the floor.
The cap matters for the ratchet. Before the cap, heavy minting inflates supply and slows the rise in floor per token, because the same ratchet revenue is spread across more tokens. After the cap, no buy volume can create new supply, so all trading (including arbitrage) becomes pure churn that ratchets a fixed token base.
Heavy post-bonding volume therefore lifts the floor cleanly. This is the intended behavior and the reason the cap is part of the design rather than an afterthought.
Looping Exposure Against the Floor
Because the share floor is durable collateral, a holder can borrow against it, buy more of the token, and repeat. This loops $BOT exposure and the ratchet. It is optional and is not required to hold the token.
8.1 Mechanics
Each loop deposits the token as collateral, borrows up to the loan-to-value limit against the floor value, and buys more of the token with the borrowed funds. The repeated borrowing forms a geometric series with a finite ceiling:
8.2 Leverage and liquidation
Higher loan-to-value gives more leverage but a thinner buffer before liquidation. Liquidation occurs when debt ÷ collateral value exceeds 75%. The table shows the tradeoff:
| Loan-to-Value | Max Leverage | $BOT Decline to Liquidation |
|---|---|---|
| 30% | 1.43× | 60.1% |
| 40% | 1.67× | 46.7% |
| 50% | 2.00× | 33.4% |
| 60% | 2.50× | 20.0% |
| 70% | 3.33× | 6.7% |
$BOT is a newly listed, volatile fund that has already fallen sharply since its IPO. High loan-to-value looping on this asset carries a real risk of liquidation and total loss. The share floor protects principal in share terms but does not protect a leveraged position against a margin call.
8.3 Leverage revenue feeds the floor and surplus
Looping generates revenue for the protocol through two streams:
- Borrow interest - holders who loop pay interest on their loans, accruing continuously to the protocol.
- Liquidation penalties - when a leveraged position crosses the liquidation threshold, its collateral is seized at a penalty.
Both streams are handled exactly like trading spread. A governed portion is converted into $BOT shares and locked into the floor; the remainder accrues to the surplus pool.
As an illustration: if looped debt of $50,000 accrues interest at 8% and $20,000 of collateral is liquidated at an 8% penalty over a year, the protocol collects $5,600 of leverage revenue. At a 70% ratchet allocation, $3,920 buys $BOT for the floor and $1,680 accrues to surplus.
This revenue comes from leveraged holders, not from outside the system. The floor for everyone is partly funded by the interest and liquidations of the most aggressive participants, internal redistribution, the same as the trading spread.
Architecture
Risks
| Risk | Description | Mitigation Direction |
|---|---|---|
| Reserve Reserve volatility |
$BOT is volatile and can fall sharply. | Share-denominated floor, explicit messaging, conservative ratchet policy. |
| Volume Low volume |
Without trading, the ratchet stalls. | Design for arbitrage flow; set expectations honestly. |
| Premium Premium on premium |
Token premium stacks on $BOT's own premium. | Curve calibration, disclosure, redemption availability. |
| AMM Arbitrage drain |
Pool price below floor opens a reserve drain. | Seed pool at or above floor; size pool depth; trade burn. |
| Oracle Oracle pause |
Feed freezes during corporate actions. | Detect pause; halt or queue mint and redeem. |
| Leverage Looping liquidation |
Leverage liquidates on $BOT decline. | Conservative LTV limits; clear risk disclosure. |
| Legal Regulatory |
Token is a claim on a tokenized security. | Legal review and likely regulated wrapper before launch. |
Open Items
- Continuous versus batched $BOT conversion.
- Redemption asset: stablecoin or tokenized $BOT to the redeemer.
- Ratchet allocation policy and governance cadence.
- Loan-to-value limits and liquidation parameters for looping.
- Target chain and pool depth relative to reserve.
- Regulatory posture and jurisdiction, given $BOT is a tokenized US security.
$BOT facts are current as of mid-2026 and should be re-verified at build time, as the fund is newly listed and fast moving. Figures in this document are illustrative, not forecasts.