The house vault
The liquidity on the other side of every trade, and how it's protected.
RopeMarket is the counterparty to every trade. Its liquidity comes from a house vault: collateral deposited by LPs in exchange for vault shares.
How it earns
The vault's edge is the spread. Every buy pays fair + 1% and every sell receives fair − 1%, so on average the vault earns the spread on the volume it makes a market for. On mainnet, that spread income funds $ROPES buybacks.
Depositing and withdrawing
deposit(assets)mints vault shares at the vault's conservative value.withdraw(shares)pays out at the conservative value, and only from the free balance.- The conservative value assumes every open round is lost by the vault. LPs can never withdraw money a round might owe.
Liability accounting
The contract tracks liability: everything the vault currently owes or holds back.
- For an open round: its worst case, whichever side would owe more if it won.
- For a settled round: the unredeemed winnings.
- For a voided round: the unredeemed refunds.
freeBalance() = balance − liability. On testnet the vault is seeded with 100,000 tUSDC. Live numbers are on /transparency.