WRAITH
Phantom liquidity
The money market that haunts two places at once. Supply once, and the same capital backs loans and serves swaps, on Uniswap v4 hooks.
protocol live on Robinhood Chain · no Crypt raised yet
The problem
Capital that only works once.
In most money markets your deposit does one job. It sits in a pool, waits for a borrower, and earns whatever utilization allows. Meanwhile the same asset is sitting idle in a dozen other protocols doing the same lonely thing. Capital is fragmented, half asleep, and underpaid.
The idle side of a lending market is, by construction, capital nobody is using. WRAITH puts a v4 hook over the pool it belongs to and lets that idle balance answer swaps as well as loans. One pool of capital, two sources of yield, and never two claims on the same wei.
Phantom liquidity
Present in two places, duplicated in none.
A Crypt does not hold tokens. Its idle reserve lives inside the Uniswap v4 PoolManager as ERC-6909 claims, which is why the Veil can hand a slice of it to a swapper in the middle of their own transaction: no transfer, no router, no pre-positioned range, nothing to move.
Look up the Crypt on a block explorer and its token balance reads zero. The reserve is there. You just cannot see it from the outside.
- 01 A swap arrives at the pool. The Veil runs first.
- 02 It serves at most half of it from the reserve, priced on the pool's own curve so the fill is the trade the pool itself would have made, plus a spread.
- 03 The Crypt books the fill as a real position: the input becomes supplied collateral, the output is drawn from what the book owns and then borrowed at the market's own rate.
- 04 The rest of the swap goes through the pool as usual. The swapper pays less impact than they would have alone.
How it works
Four pieces, and nothing else.
You supply an asset and hold a Wisp.
The Wisp is your share of that side of the market: what is sitting idle, what is out on loan, and what the Veil is quoting with. It keeps earning while it is pledged as collateral, so nothing you post ever stops working.
A v4 hook that quotes with the reserve.
Before the pool sees a swap, the Veil serves part of it out of the idle reserve, priced on the pool’s own curve plus a spread. The capital never leaves the PoolManager, so lending and trading are the same wei.
One market per pool, isolated.
Every Crypt has its own two assets, its own rates, its own book and its own losses. A bad asset can only ever hurt the people who supplied to that Crypt. Anyone can raise one, and no one can list you out of it.
Clears what stops being sound.
Positions are measured against the Veil’s own averaged price. Below the threshold, anyone can clear part of the debt and take collateral at a discount. The Veil’s own inventory is liquidated through the same door.
Compiled in
The numbers are constants, not a vote.
Loan to value
80%
What a position may borrow against the value it has pledged.
Fill share
50%
The most of any swap the Veil will serve, so the pool keeps pricing every trade.
Spread
from 0.25%
Charged on a fill, and it widens as the book leans further one way.
Book ratio
2:1
Collateral over debt the Veil's own inventory must clear before it may quote.
Liquidation bonus
7.00%
What a Reaper keeps on top of the debt it clears.
Price window
15 min
Health is measured against the average the Veil keeps, never against spot.
Dark above
5%
If spot leaves the average by more than this, the Veil stops quoting entirely.
Reserve factor
10%
Of interest, kept by the market and credited to the book as equity.
The honest part
Making capital work twice is not free.
Dual duty liquidity is a larger risk surface than a plain pool. That is exactly why every market is isolated in its own Crypt, why the parameters are conservative and compiled in, why the Veil's inventory is a real over-collateralized position that the Reaper can close, and why the accounting is on chain and readable at every step.
- Yields come from real borrowing and real swap flow. Nothing is minted to pay them.
- The Veil's book holds inventory, so it can lose to a market that trends. Its losses land on suppliers of that Crypt if the Reaper is too slow.
- DeFi carries smart contract, liquidity and liquidation risk.
- Never supply more than you can afford to lose.
The liquidity was always there.
You just couldn't see it.