Create Market - Curve AMM

This page explains how to create a new PT (Principal Token) / YT (Yield Token) and the corresponding Curve AMM pool.

Follow the steps below to configure and deploy your market.

Napier Markets curator is supposed to be a knowledgeable DeFi user, as monitoring liquidity on Napier requires skills, and has some risks.

Using the Curator App

Follow the steps below to launch a new market.

In the Curator App, “Create New PT & YT” and “Create Market” are integrated into a single workflow.

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Step 1: Preparation

• Access the Curator Dashboard.

• If your account is not verified, complete verification on the Verify Your Account.

• Click Create Market to begin.

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Step 2: Pool Setting (Curve AMM)

Implied APY Range defines where liquidity is concentrated within the pool.

Select a Underlying Asset

• Choose the underlying asset from the selector at the top (e.g., cUSDO).

• Click Change to switch to another underlying asset if needed.

Select a Pool

• Choose between Napier AMM and Curve AMM.

  • If you choose Napier AMM, please follow the guide on Create Market - Napier AMM.

Choose a Pool Parameter Preset

• Choose a preset: Pick one of five parameter presets matching the asset’s expected yield volatility.

• Set initial implied APY (%): Provide your estimate; this sets the initial PT : underlying ratio at deployment.

• Review & confirm: Verify preset, liquidity, and implied APY → initial ratio, then proceed.

Curve Finance Pool Advanced (Optional)

Setting advanced parameters helps optimize the market for specific use cases, but it is optional. You can easily deploy a market by selecting from five preset pool parameters based on yield volatility and setting the Initial Implied APY according to the average yield of the underlying asset. Also, note that the size of the initial liquidity will impact user trade sizes.

• Advanced (Curve Finance Pool) (Optional)

  • Mid fee (0.005 - 3%) is the fee charged when pool is perfectly balanced (minimum possible fee).

  • Out fee (0.005% - 3%) is the fee charged when pools is completely imbalanced (maximum possible fee).

  • A (4,000 - 40,000,000) is the concentration of liquidity at the core of the bonding curve

  • Gamma (0.00000001 - 0.199) is the overall breadth of the curve

  • Allowed extra profit (0 - 0.01) is the excess profit required to allow price re-pegging.

  • Fee gamma (0 - 1) is the speed at which the fee increases when the pool becomes imbalanced. A low value leads to a more rapid fee increase, while a high value causes the fee to rise more gradually.

  • Adjustment step (0 - 1) is the minimum size of price scale adjustments

  • Moving average time (60 - 604800) is the duration of the EMA price oracle

  For further reference on the other parameters of the Curve Pool, please refer to the Curve Finance documentation | Crypto Pool. Please note that we offer five parameter presets for curators to streamline this process, so configuring these advanced parameters is not always necessary.

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Step 3: PT/YT Setting

In this step, define the issuance parameters for PT and YT.

• Market name: Example: “Napier DAO npETH”

• Market description: A short description displayed to users.

• Maturity date: Set the maturity period (e.g., 1 year / 6 months / 3 months).

• Issuance cap: The maximum amount of PT/YT that can be minted.

• Resolver: The contract that retrieves the exchange rate between vault shares and the underlying asset.

  • Specify it using “Select a resolver.” If the underlying assets follow the ERC-4626 standard, use the ERC-4626 Resolver. For details, see Resolver Selection.

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Step 4: Fee Structure Setting

Configure all fees related to issuance, redemption, yield, and swaps.

• Issuance fee is a fixed-percentage fee applied to the underlying when minting new PT and YT.

• Redemption fee is a fixed-percentage fee applied when converting PT (and any associated YT, if applicable) back to the underlying.

• Performance fee (before maturity) is a dynamic percentage applied to all yield accrued (including points) by all outstanding YT.　Example: 10% on 3% APY ≈ 0.3% of notional.

• Performance fee (after maturity) is a dynamic percentage applied to yield generated by the YBTs backing matured, unredeemed PTs.

  Example: 10% on 3% APY ≈ 0.3% of notional.

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Step 5: Initial deposit amount

In this step, allocate the initial liquidity to be deployed with the pool. Specify the underlying asset (e.g., cUSDO) and deposit amount.

When you deposit the underlying as Mint & LP, the asset and its corresponding PT pair are supplied to the pool based on the Initial Implied APY.

After the deposit, you retain the YT and LP tokens.

Note: Since we use Curve pools as its trading engine, any markets require a minimum initial liquidity of 0.2 in the respective asset’s unit (e.g., 0.2 BTC, 0.2 ETH, 0.2 BNB and 0.2 NPR) to function properly. This ensures that the total liquidity value (D) within the Curve pool is sufficient to maintain stability. If D is too low, even small trades can cause significant price distortions, making the pool inefficient.

Initial deposit amount	An initial deposit amount required to launch the pool.
Deposit (Mint & LP)	Deposit (Mint & LP) Your underlying assets are converted to the required assets Some of the underlying assets are minted into PT and YT PTs are paired with underlying assets to provide liquidity YTs and LP tokens remain in your hand

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Step 7: Review Summery

Review all configuration details in the Summary Panel on the right:

• Pool

• Preset

• PT & YT

• Fee structure

• Output

Actions such as Delegate and Renounce can only be performed after market creation.

Three-Dot Menu (⋯)

Click the three-dot icon in the upper-right corner to access the following functions:

• Simulation: Simulate trading behavior using the initial liquidity settings

• Save Draft: Save the current market configuration as a draft for later editing

• Share Draft: Generate a shareable link for team review or collaboration

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Step 8: Deploy

Once all settings are complete, click Create in the bottom right corner and approve the transaction to deploy your new market.

Recommended Steps

Once your Market is live, you can:

• Manage Market — Adjust rehypothecations, roles, fees, incentives, and monitor performance.

• Stack with Lending— Collateralize PT or LP tokens to achieve greater capital efficiency.

• Stack with GP Vaults — Transform into a simple, user-friendly financial package.

Related Documents

Protocols

• PT & YT — Tokenized Yield: Overview of yield tokenization

• Markets — Napier AMM: Pool design, implied APY, rehypothecation, fees, and deployment.

• Markets — Curve AMM: Pool presets, minimum liquidity, fee behavior, and deployment flow.

Curation

• Verify Curator Account: Account verification steps before creating or managing markets.

• Create Market — Napier AMM: End-to-end guide to deploy a market using Napier AMM.

• Resolver Selection: How to choose and configure the right resolver for your underlying asset.

Once your Market is live, you can:

• Manage Market — Adjust rehypothecations, roles, fees, incentives, and monitor performance.

• Stack with Lending— Collateralize PT or LP tokens to achieve greater capital efficiency.

• Stack with GP Vaults — Transform into a simple, user-friendly financial package.