Whitepaper Chapter
Treasury
Liquidity formation, settlement authority, and policy gates.
Treasury is Sagitta's monetary authority for liquidity formation, allocation batching, settlement routing, and reserve-aware growth control.
1. Mandate
Treasury controls deployable liquidity under doctrine constraints and converts protocol inflows into bounded allocation capacity.
It enforces reserve-aware monetary discipline and deterministic settlement ordering.
2. Role in the Protocol Stack
- Bridges custody state and execution pathways.
- Coordinates batch allocation cycles with policy guardrails.
- Reconciles outcomes into reserve and vault settlement flows.
3. Role-Token Doctrine
Treasury operates on role abstractions instead of fixed assets:
- Treasury Token role.
- Stability Unit role.
- Reserve Asset role.
- Execution liquidity and settlement role mappings.
4. Batch-Based Liquidity Formation
- Forms allocation batches under risk and reserve constraints.
- Routes deployable liquidity to isolated escrow execution contexts.
- Limits growth when reserve coverage falls below doctrine thresholds.
5. Settlement, Buyback, and Reserve Replenishment
Treasury governs deterministic settlement across positive and adverse outcomes.
Outcome routing can include buyback, reserve replenishment, and depositor reconciliation in predefined order.
6. Reserve-Ratio Enforcement
- Risk posture scales with insured capacity.
- Treasury contracts exposure when reserve pressure rises.
- Monetary policy cannot override principal-protection constraints.
7. Stress Behavior and Continuity Mode
Under stress, treasury shifts to protective posture with tighter release controls and reduced allocation authority.
Continuity doctrine governs transition sequencing for stabilization and recovery.
8. Token Lifecycle Phases
- Formation and reserve-aware issuance logic.
- Allocation deployment and reconciliation cycles.
- Protective contraction and recovery expansion states.
9. Summary
Treasury is the protocol's monetary and settlement control plane.
It enables growth only when protection and solvency doctrine remain intact.
Need implementation support?
Use these chapter pages for local review, then contact Sagitta Labs for architecture and deployment guidance.
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