Create a New Market

Currently, on the Napier Interface, "Create a New PT and YT" and "Create a New Pool" are provided as a unified process. Therefore, these processes must be followed simultaneously according to the steps outlined below.

1

Go to Curator Dashboard

2

If you haven't verified your address, follow the steps on the "Verify Your Account" page first

3

Click "Create a new market"

4

Fill in the form with the necessary information/parameters to create new PT and YT, and Pool.

PT and YT Configuration

• Market name is the name of specific markets set by a curator. e.g. Curve DAO scrvUSD.

• Description is the short sentence about a specific market freely set by a curator.

• Chain (Network) is the blockchain network where the market is deployed.

• Underlying asset contract is the contract address of any tokens that generates yield.

• Underlying asset logo is the logo of any tokens that generates yield.

• Maturity Date (Maturity) is the date on which the principal amount of a yield-bearing token or other debt instrument becomes due.

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

• Redemption fee is a fixed percentage fee applied to underlying assets when converting or redeeming a PT and YT back into their underlying assets.

• Performance fee (before marurity) is a dynamic percentage fee from all yield accrued (including points) by all YT in existence. For example, a 10% Performance fee (before marurity) on a 3% APY translates to approximately a 0.3% fee on the notional amount.

• Performance fee (after marurity) is a dynamic percentage fee from all yield accrued (including points) by all yields from the YBTs of matured unredeemed PTs. For example, a 10% Performance fee (after marurity) on a 3% APY translates to approximately a 0.3% fee on the notional amount.

• Issuance Cap (Limit) is the maximum amount allowed for mints within a specific PT and YT.

PT and YTAdvanced (Optional)

When using a non-ERC4626 asset as the underlying asset, you need to register a component called a Resolver. However, in most cases, Napier Labs has pre-registered the necessary resolvers, so you typically do not need to input anything. f you prefer to set it up yourself, here is the guide of How to Choose a Resolver.

• Advanced (Optional)

  • Resolver is the critical component in the Napier v2 that provides standardized price and conversion information between yield-bearing vault tokens and their underlying assets. It serves as an abstraction layer that allows the protocol to work with different types of yield-bearing vaults consistently.

    • ERC4626InfoResolver

      • Resolver for standard ERC4626 vaults

      • Uses the vault's built-in convertToAssets() function

      • No external oracle needed

    • SharePriceResolver

      • Resolver for Kind2-like vaults that have an assetsPerShare() function

      • Uses the vault's custom share price function

      • No external oracle needed

    • CustomConversionResolver

      • Resolver for vaults with custom conversion functions

      • Uses a specified function to convert shares to assets

      • No external oracle needed

    • ExternalPriceResolver

      • Resolver that uses external price feeds

      • Requires an oracle/price feed contract

      • Uses a specified price feed function

    • ConstantPriceResolver

      • Resolver that maintains a constant 1:1 exchange rate

      • No external oracle needed

      • Used for simple 1:1 pegged assets

  • Component Definitions

    • Vault address is the target vault contract that holds the yield-bearing tokens

    • Asset address is the underlying token that the vault accepts as deposits

    • Oracle address is the price feed contract (only for ExternalPriceResolver)

    • Function name varies by resolver type:

      • ERC4626: Uses standard convertToAssets()

      • SharePrice: Uses specified assetsPerShare() function

      • Custom: Uses specified conversion function

      • External: Uses specified price feed function

      • Constant: No function needed (uses fixed 1:1 rate)

If you are unsure how to set fees, we recommend a 3% Performance Fee (before maturity) and a 10% Performance Fee (after maturity). For more guidance on structuring PT and YT business models, please see “Market-Based Economics.”

Pool Configuration (Curve Finance CryptoSwap Exchange)

• Pool parameter presets are five-level options for asset yield volatility, predefined through simulations by Napier Labs, to simplify curators' parameter settings.

• Initial liquidity is the funds automatically deployed alongside the market you provide liquidity for. You can deploy ONLY the corresponding underlying asset as initial liquidity, and it will be automatically executed based on the Provide Liquidity - Manual process.

• Initial implied APY (%) is your estimate used to determine the pool ratio of the liquidity pair at the time of pool deployment.

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.

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.

5

Review the output information to ensure its accuracy

Role delegation and renouncement are only possible after creating a market.

6

If you have any uncertainties during the process, contact the team on Discord

7

Click the "Create & Deploy" button and approve the transaction to complete the creation of the new PT/YT and pool!

8

After creating a market, you can click “Manage Market” to collect fees, adjust market permissions, add incentives and etc.

• If you want to add point incentives, you can click "Point".

• If you want to make the market "Unstoppable", you can click "Renounce".

• If you want to adjust the permission, you can click "Delegate".

9

Also, click “Share on X” to let everyone know you’ve created a market. You can inform the Napier community through the #verified-curator-updates channel on the Discord as well