SPYX.DOCS — PROSPECTUS.HTM · V1.0 · ON ARC MAINNET (CHAIN ID 5042)

How The Machine Works

This document is styled as a prospectus as a matter of house taste. It is not a prospectus, not an offer of securities, and not investment advice. It is, however, accurate: every number below is a deploy-time constant of the protocol. Where this page and the chain ever disagree, the chain is right and we owe you a correction.

$SPYX is a fixed-supply token on Arc Mainnet, launched through RadarDEX: 1,000,000,000 tokens, no owner, no mint function, no pause, no tax hooks — the token contract has no admin functions at all. 100% of supply entered a Uniswap V3 pool against native USDC at launch, and the LP position is locked in a contract with no withdrawal path. Nobody can pull the liquidity. Not us, not anyone.

On top of that immutable base sits the mechanism: a fee engine that fills a USDC vault, a floor that can only rise, a circuit breaker that decides — by formula, never by committee — whether weekly revenue defends the price or pays the lockers, and an index fund (ARCX) that gives the whole thing a job. One loop, read top to bottom:

The launch pool charges a 1% swap fee. RadarDEX splits collected fees 70/30: 70% to the deployer wallet, 30% to the RadarDEX protocol. The collection call itself — collectFees(tokenId) — is permissionless: anyone may trigger it, and the recipients are fixed in the lock record, so nothing can be redirected.

The deployer's 70% flows onward into the SPYX FeeRouter every Weekly Close. Fees accrue in both assets: the USDC side becomes the week's budget; the $SPYX side is burned immediately, every week, without exception. The fund holds treasury positions of its own inside the same pool (protocol-owned liquidity), and fees earned by those positions bypass the 70/30 split entirely — 100% to the vault.

The floor is one division: floor = vault USDC ÷ circulating supply. The numerator only receives — trading fees, ARCX fund fees, ragequit penalties. The denominator only shrinks — fee burns, buyback burns, penalty burns. A ratio whose top only rises and whose bottom only falls moves in exactly one direction.

Two standing orders defend and harvest around that floor, both formulaic, both permissionless:

Each Weekly Close, code computes the premium P = TWAP ÷ floor and splits the week's USDC budget accordingly. This chart is the entire dividend policy — there is no other lever, and nobody can touch this one either:

Note what this rules out: the fund never pays yield out of its own blood. When there is no premium, there is no dividend — by design, not by vote. This is the correction to the failure mode that killed the 2021 generation of reserve tokens, which kept printing rewards while trading below backing.

Lock $SPYX for 1 to 104 weeks. Voting power is linear in both size and remaining time: power = amount × weeksRemaining ÷ 104 × multiplier. The multiplier is where being early pays, permanently:

Tiers are assigned by cumulative lock order and never change: the first 50M tokens ever locked carry 1.5× for the life of the lock, the next 100M carry 1.25×, everyone after carries 1.0×. On top of that, the first 500 wallets to lock at least 1M $SPYX within 14 days of launch become Founding Lockers — an extra 1.2× for life. Five hundred seats, then the register closes forever.

Leaving early is allowed and expensive: ragequit returns 50% of the lock. Of the forfeited half, 30% goes to the rewards pot of remaining lockers and 20% is burned. The people who stay are paid directly in the tokens of the people who leave.

Epochs run seven days and settle Fridays at 4PM ET — the New York close, because this fund has a sense of humor about what it is. During the week, veSPYX holders vote for up to five index constituents from an add-only whitelist of Arc tokens. At the close, anyone may call finalize(): the top five by votes become the ARCX index, with at most two seats changing per week — rebalancing discipline, not musical chairs.

Inclusion is worth real money: index budget flows into the winning tokens. Which is why projects bribe veSPYX voters for seats — openly, on-chain, and the bribes belong to the voters. In the real world, entering the S&P 500 moves a stock because index money must buy it. Same physics, smaller suits.

ARCX itself is the use case: deposit USDC, hold the top five tokens on Arc in one click. Entry fee 1%, management fee 2%/yr (as share dilution), both paid to the SPYX fee engine — so the floor is funded by fund economics, not only by meme volume. Withdrawals pay in kind: your pro-rata slice of every holding, no forced selling. Vault assets belong to depositors, are never counted in the SPYX floor, and no code path can move them to the treasury.

Dividends are real USDC, split among that epoch's voters by streak-weighted power. Voting is the claim check: no vote, no dividend. Consistency compounds — every consecutive weekly vote grows a streak multiplier that reaches 1.25× at 26 weeks. Miss one Friday and the streak resets to one. The S&P has its Dividend Aristocrats; so do we. Ours just have to show up.

WinSPY is the sweepstake on top: pool your lock's weekly dividend into the pot, one wallet drawn every Friday night takes it all. Principal is never touched — worst case you lost a week of yield chasing a jackpot, which is the most honest lottery ticket in finance. 18+ where applicable.

Asked directly: is this a ponzi? Early participants do earn more here — through seven disclosed layers, from the launch curve itself to tier multipliers, founding seats, fat early dividends-per-locker, streak head starts, cheap early votes, and seeded early jackpots. That is deliberate. What makes it not a ponzi is the source of every payout:

What runs the machine: permissionless cranks. Epoch settlement, fee collection, floor bids, buyback clips, vault investing, index finalization — every operational entrypoint may be called by anyone, and every precondition is enforced on-chain. If the formula says no, the call reverts, regardless of who calls. Bots run these on schedule as a convenience; anyone can run the same bots.

What we can do: add candidates to the index whitelist. That is the complete list, and it is add-only — no removal functions exist. What we cannot do: mint, pause, tax, change any fee or threshold, pull the liquidity, touch vault assets, or pay ourselves from the treasury. The only way to change the policy is to deploy a different fund.

What can still hurt you: the price above the floor is a market and does what markets do. Constituent tokens in ARCX are memecoins with memecoin liquidity. Smart contracts carry smart-contract risk, and immutability means bugs are fixed by redeployment, not by patches. Dividends can be zero for long stretches, on purpose. Read everything before locking anything.