How it works
The token's tax becomes the money that lends against the token.
The tax arrives in BNB
It waits on the token's processor until someone moves it.
- Anyone may call flush, which asks Flap's processor for the tax and counts it
- A trigger does it on a schedule: every 1 hour while anything is waiting, every 6 hours when nothing is
- 3% of every arrival goes to the treasury; the rest is the pool
The pool is the only lender
There are no depositors: the money is the tax this token paid.
- One loan may be at most 10% of the pool's assets
- And no more than 50% of them may be out on loan at once
- The smallest loan is 0.001 BNB, so dust cannot fill the book
Pawn the token, take BNB
Escrow it, take a fixed amount against it, pay one number to get it back.
- What you can take is 40% of what the chain says the collateral is worth, and the chain is deliberately pessimistic about that: the lower of what selling it would actually return and a price that is slow to rise.
- The debt is fixed when the loan opens: principal plus 4%, with nothing accruing. One number, whenever you come back.
- The term is 7 days, with 2 days of grace after it.
- An offer has to be signed by us before it can be taken, and the chain still caps it, so a stolen signing key cannot lend more than the collateral carries.
If the price falls far enough
The vault sells the collateral in small pieces, and anyone may run it.
- The line is 80%: when the debt reaches that share of the collateral's value, or the term runs out, a step may run.
- A step sells at most 0.5% of the market's own depth, and only once every 5 minutes, so the sale does not cause the fall it is answering.
- Whoever calls it keeps 0.5% of the proceeds. Liquidation has to work when nobody we know is watching, so it pays for itself.
- Proceeds repay the debt first. What is still escrowed when the debt clears is forfeit to the treasury, which is why repaying before the line is worth it.
Measured against BNB Chain on 2026-09-23: one step sold 4723999 tokens and returned 0.0159880 BNB, and a real dump was worked through in 2 steps.
What volume leaves behind
Move the slider: the rates are fixed, the volume is not.
- Into the pool
- 1.7460 BNB
- To the treasury
- 0.0540 BNB
- Flap's own share
- 0.2000 BNB
Who runs it, and who holds it
Two different answers, and the difference is the point.
- Anyone can flush the tax, run a liquidation step and read every number here.
- We sign the offers, set the terms inside fixed bounds, and hold the pool and the treasury.
- That includes an emergency withdrawal that can reach escrowed collateral. What that means.