Treasury

The SLOHM Treasury holds the assets that back every SLOHM token. It's a hybrid system combining off-chain BTC custody with on-chain OP20 asset management.

Architecture

SLOHM Treasury Structure:
│
├── LAYER 1: BTC Multisig (Off-Chain)
│   └── Real BTC held in 4-of-7 community multisig
│   └── Primary backing, highest trust
│   └── Balance reported via attestation
│
└── LAYER 2: OP20 Assets (On-Chain)
    ├── MOTO (MotoSwap token)
    ├── PILL (ecosystem token)
    ├── LP tokens (with caps)
    └── Future approved OP20s

Why Hybrid?

OPNet contracts cannot hold BTC directly — this is a fundamental limitation of smart contracts on Bitcoin. Instead, we use a community-controlled multisig for BTC, matching Olympus DAO's early treasury model.

Treasury Assets

Asset	Type	Custody	Valuation
BTC	Native	4-of-7 Multisig	Attestation
MOTO	OP20	Smart Contract	MotoSwap Pool
PILL	OP20	Smart Contract	MotoSwap Pool
LP Tokens	OP20	Smart Contract	RFV Formula

Backing Calculation

totalBacking = btcValue + motoValue + pillValue + lpValue
backingPerSLOHM = totalBacking / slohmTotalSupply

Each SLOHM is redeemable for its proportional share of treasury assets.

Risk-Free Value (RFV)

For LP tokens, we use RFV to avoid circular backing:

RFV = 2 × sqrt(reserve0 × reserve1) × (lpAmount / totalLP)

This counts only the "risk-free" portion of LP value.

Treasury Functions

Function	Description	Access
Deposit	Accept bonded assets	Bonder only
Withdraw	Emergency withdrawal	Multisig only
Redeem	Burn SLOHM for backing	Public
Mint	Create new SLOHM	Authorized only

Protocol-Owned Liquidity

The treasury accumulates LP tokens through bonding, creating permanent liquidity:

• No mercenary liquidity
• Trading fees go to treasury
• Price stability
• Sustainable long-term