A dollar claim, marked and closed every ninety days

kUSD is the instrument: a dollar-denominated instrument in which liquid kUSD is the senior, spendable claim, while those who actively choose risk hold dated Bond positions beneath it.

The architecture rests on one principle. The risk in what stands behind the currency should be carried by whoever chose to buy it, rather than passed automatically to every holder of the currency.

Risk is taken through stakeholder-defined monetary expansion

The Reserve is not spent to create the risk portfolio. Risk-bearing assets are created only when holders have first committed capital to carry that risk as Bonds. The liquid holder therefore occupies a senior position as a Reserve-capital provider, while the bond market provides the junior, risk-bearing capital beneath it.

Bond creation is therefore the point of monetary expansion. Every Bond staked creates 50% new deployed assets onto the balance sheet, so total supply grows through the bond market as well as through the Reserve. Expansion is bounded by demand for that risk, not by issuer discretion.

The expansion converges

Each unit of Bond capital creates only half a unit of deployed assets. That is a structural limit rather than a policy one: the staking path is convergent rather than an unrestricted leverage loop, because each round of expansion contributes less deployed risk than the capital committed to carry it.

What that buys the liquid holder

A holder of liquid kUSD is senior to every position that chose to take risk, is compensated by them for the balance-sheet capacity they use, and holds a claim whose ranking was fixed before any gain or loss occurred.

A holder who did nothing must read no less value after a batch than before it. That is asserted by test rather than by policy.

Syncratix and kUSD

The two are related and not interchangeable. Syncratix is the architecture; kUSD is the first instrument built on it. The reference configuration is described in full under kUSD.