Kalyan
The Kalyan protocol produces an open-ended, reserve-backed instrument linked to a single underlying reserve asset. New shares are issued and existing shares are redeemed under a rules-based pricing formula. The structure maintains a minimum redemption value per share determined by reserve coverage, and this minimum value steps upward as additional capital enters the reserve. Since the minimum redemption value never falls, the security has asymmetric return characteristics: downside is limited to the current redemption floor, while upside remains uncapped.
Open-ended price discovery
OpenThe structure supports repeated cycles of appreciation and retracement, with each sufficiently strong advance capable of establishing a higher nondecreasing redemption floor, so the pricing framework has no inherent terminal ceiling.
Position economics
OpenAfter subscription, the position is defined by three values: cost basis, current market value, and current minimum redemption value. The gap between market value and the floor is the position’s remaining downside to floor.
Pricing function
OpenThe pricing function is a predetermined supply-based schedule that sets share value, including a flat minimum-redemption region that establishes the floor and can be reset upward as reserve support grows.
Advance facility
OpenThe advance facility allows a holder to obtain immediate liquidity of up to the current minimum redemption value of locked shares on a non-recourse basis, without impairing reserve coverage or the solvency of the pricing mechanism.