Exchequer Note(s)

Exchequer supports two note types. Both are ERC-20s with on-chain, transparent collateral and a downside protection floor at maturity. They differ in how upside is delivered. Any already-launched token can issue these Exchequer Notes to run repeatable acquisition campaigns—think TGE magic without the sell pressure—while compounding deep, stable on-chain DEX liquidity as a designed consequence.

1) Protected Growth Token (PGT)

A PGT delivers a protection floor (max 75%) plus spot-equivalent upside during the term. Returns (if any) are realized at settlement via the defined participation.

Creation Mechanism

1. Issue Notes — Project sells PGT to buyers (ERC-20).

2. Collateralize & Replicate — Proceeds and treasury assets are posted on-chain to (a) fund the floor, and (b) replicate spot-like upside (no LP rebalancing).

3. LP — Project forms project-owned LP as part of the collateral plan.

4. Settle — At maturity, buyers receive the floor or the specified upside payoff, whichever is greater.

Features

• Partial downside protection (≤75% drawdown floor) settling in LP tokens.

• No yield (zero coupon); simple buyer outcome at settlement.

• No IL on the upside—tracks token appreciation per participation/cap terms.

• AMM-agnostic; works alongside any major DEX without requiring emissions.

• Issuer levers: term, floor level, participation rate, optional upside cap.

Typical fit: New-user acquisition and conviction holders who want clean “floor + upside” instead of yield; ideal when minimizing complexity and avoiding IL is paramount.

2) Power Protected Growth Token (Power PGT)

A Power PGT delivers a protection floor (max 75%) plus jackpot-style upside distribution using prize-linked mechanics. If the token appreciates, a defined share of upside accrual is pooled and distributed to winners by an on-chain, provably fair drawing at settlement; all holders receive at least the protection floor.

Creation Mechanism

1. Issue Notes — Project sells Power PGT to buyers (ERC-20).

2. Form LP — Proceeds and treasury assets are posted on-chain to (a) fund the floor, and (b) define the upside accrual that feeds a prize pool per program rules.

3. Prize Pool Accrual — Throughout the term, the protocol allocates a specified share of upside accrual into the on-chain prize pool.

4. Settle — At maturity, every holder receives at least the floor; the prize pool is distributed to winners via a transparent, on-chain drawing..

Features

• Partial downside protection (≤75% drawdown floor) settling in LP tokens.

• Jackpot-style upside distribution adds event energy without long-tail emissions.

• Designed to galvanize dormant audiences while compounding stable on-chain DEX liquidity across campaigns.

• Transparent, permissionless construction (no CEX/MM retainers or token loans).

• Issuer levers: term, floor level, prize-pool share, weighting rules, participation/cap.

Typical fit: User-acquisition campaigns, roadmap moments, or seasonal programs where gamified upside with principal protection converts new cohorts.