Note Quantity

Note Quantity refers to the total number of Liquidity Notes that a project creates and offers for sale to investors. Each note represents a proportional share of the liquidity pool and entitles the holder to specific benefits such as downside protection, yield distributions, and upside boosts.

Relation to Offering Size

• Offering Size and Note Quantity are closely related but distinct concepts:

  • Offering Size: Refers to the total capital or liquidity being raised through the issuance of Liquidity Notes.

  • Note Quantity: Denotes the number of individual notes issued to represent that capital.

• Example:

  • Offering Size: $5,000,000 USDC

  • Price per Liquidity Note: $100 USDC

  • Note Quantity: 50,000 Liquidity Notes (since $5,000,000 / $100 = 50,000)

Representation in the Liquidity Pool

• Each Liquidity Note corresponds to a specific portion of the total liquidity pool. The cumulative note quantity, multiplied by the price per note, should align with the total liquidity provided in the pool.

• Example:

  • Note Quantity: 50,000 Liquidity Notes

  • Price per Note: $100 USDC

  • Total Liquidity Created: 50,000 × $100 = $5,000,000 USDC (from investors) + $5,000,000 USDC (from the project) = $10,000,000 USDC