Catpound Treasury
The Catpound Treasury is a core component of the protocol's long-term sustainability. It receives protocol fees from the vault's compound cycles and manages them through a structured allocation strategy designed to align incentives with the MOTO ecosystem.
Revenue Source
The treasury is funded by:
- Floor protocol fee (default 2%) applied to harvested rewards during each compound cycle
- Per-user surcharge from lower-tier depositors (varies by tier, up to 5% above floor)
These fees are calculated on the reward delta (new MOTO earned), not on the total vault balance. Exit fees (slash) do not go to the treasury -- they stay in the vault and benefit remaining depositors.
The MOTO Treasury Approach
Catpound is pioneering the first MOTO-native treasury model on OPNet. Instead of converting all protocol revenue to stablecoins or BTC, the treasury retains a significant allocation in MOTO -- staked back into MotoChef to earn additional yield.
Allocation Strategy
Protocol fees received in MOTO are split across three buckets:
| Bucket | Allocation | Purpose |
|---|---|---|
| MOTO (Staked) | 25-50% | Staked in MotoChef. Earns yield, strengthens MOTO liquidity, and aligns the protocol with the token it serves. |
| BTC Reserve | 25-35% | Held as native Bitcoin. Provides base-layer security and a hard-money reserve denominated in the network's native asset. |
| USDT Stability | 25-40% | Swapped to stablecoin via MotoSwap. Covers operational costs, development, and provides a stable runway independent of market conditions. |
Why Keep MOTO in the Treasury?
Most DeFi protocols immediately dump their native token rewards for stablecoins. Catpound takes a different approach:
- Aligned incentives -- the protocol's success is directly tied to MOTO's strength. Selling MOTO creates downward pressure on the token that Catpound depositors hold.
- Compounding flywheel -- staked MOTO in the treasury earns rewards just like any other staker, creating a compounding effect on protocol-owned capital.
- Market confidence -- a treasury that holds and stakes the token it serves signals long-term commitment to the ecosystem.
- Liquidity depth -- protocol-owned MOTO contributes to overall staking depth in MotoChef, benefiting all stakers through deeper liquidity.
How It Works
- Each compound cycle sends the protocol fee (in MOTO) to the treasury address.
- The treasury operator periodically rebalances according to the target allocation:
- A portion of MOTO is kept and staked back into MotoChef
- A portion is swapped to BTC via MotoSwap
- A portion is swapped to USDT via MotoSwap
- The staked MOTO in the treasury compounds alongside all other stakers, earning its own yield.
Treasury Address
The treasury address is set at contract deployment (initially the deployer wallet) and can be updated by the vault owner via setTreasury(). On testnet, the treasury is the same as the deployer address.
| Network | Treasury Address |
|---|---|
| Testnet | Same as vault deployer |
| Mainnet | TBD (will be announced before mainnet launch) |
Transparency
All treasury transactions are on-chain and verifiable on Bitcoin L1. Protocol fee transfers emit a FeeCollected event with the treasury address and amount. Surcharge settlements emit SurchargeCollected events. Every MOTO movement in and out of the treasury is publicly auditable.