myco-bonding-curve/docs/00-architecture.md

MYCO Bonding Surface Architecture

Vision

$MYCO is minted through a multi-channel bonding surface that accepts both financial reserves and non-financial commitments. The system draws on production-tested AMM math from Balancer and Gyroscope, composed into a novel architecture for token issuance.

System Diagram

                    ┌─────────────────────┐
                    │   $MYCO Token Mint   │
                    └─────────┬───────────┘
                              │
              ┌───────────────┼───────────────┐
              ▼               ▼               ▼
    ┌─────────────┐  ┌──────────────┐  ┌────────────┐
    │  Financial   │  │ Commitment   │  │  Staking   │
    │  Reserves    │  │  Channels    │  │  Lockups   │
    │ (N assets)   │  │ (labor/sub)  │  │ (duration) │
    └──────┬──────┘  └──────┬───────┘  └─────┬──────┘
           │                │                │
    ┌──────▼──────┐  ┌──────▼───────┐  ┌─────▼──────┐
    │ Ellipsoid   │  │ Contribution │  │ Time-weight │
    │ Bonding     │  │ Oracle /     │  │ Multiplier  │
    │ Surface     │  │ Attestation  │  │ Curve       │
    │ (N-CLP)     │  │              │  │             │
    └──────┬──────┘  └──────┬───────┘  └─────┬──────┘
           │                │                │
           ▼                ▼                ▼
    ┌─────────────────────────────────────────────┐
    │           Reserve Tranching Layer            │
    │  (target weights, safety checks, rebalance)  │
    └──────────────────┬──────────────────────────┘
                       │
              ┌────────▼────────┐
              │  P-AMM Redemption│
              │  Curve + Flow    │
              │  Dampening       │
              └─────────────────┘

Primitives (bottom-up)

#	Primitive	Source	Role in MYCO
1	Weighted constant product	Balancer	Baseline N-asset pricing; fallback invariant
2	StableSwap	Curve/Balancer	Pegged asset pricing within reserve tranches
3	Concentrated LP (2-CLP)	Gyroscope	Virtual reserves, price bounding (2-asset case)
4	Elliptical CLP (E-CLP)	Gyroscope	Elliptical concentration with rotation (2-asset)
5	N-dimensional surface	Novel (extends E-CLP)	Full N-asset ellipsoidal bonding surface
6	Reserve tranching	Gyroscope GYD	Multi-vault risk separation
7	Redemption curve (P-AMM)	Gyroscope	Piecewise redemption pricing by backing ratio
8	Dynamic weights	Balancer	Time-varying parameters, oracle-driven shifts
9	Flow dampening	Gyroscope	Anti-bank-run exponential outflow memory
10	Imbalance fees	Balancer	Surge fees when reserves become unbalanced
11	Commitment issuance	Novel	Labor, subscription, and staking mint channels

How They Compose

Minting (inflow):

1. User deposits one or more reserve assets
2. The ellipsoid bonding surface prices the deposit in aggregate token-space
3. Reserve tranching layer routes assets to appropriate vaults and checks safety
4. Imbalance fees apply if the deposit skews reserve weights away from targets
5. Dynamic weights may shift pricing based on time or oracle signals
6. $MYCO is minted proportional to the invariant increase

Commitment minting (parallel channel):

1. Labor oracle attests to contribution units → mint at governed rate
2. Subscription stream → continuous drip mint
3. Staking lockup → time-weighted bonus mint
4. All subject to flow dampening (rate limits)

Redemption (outflow):

1. User burns $MYCO
2. P-AMM determines redemption rate based on backing ratio
3. Flow dampening tracks recent redemptions, applies decay
4. If backing ratio < 1, piecewise discount applies (parabolic → linear floor)
5. Reserve tranching layer selects which vault(s) to redeem from
6. Assets returned to user

Relationship to Existing $MYCO

The payment-infra repo contains the production V1: a simple polynomial bonding curve (price = basePrice + coefficient * supply^exponent) with USDC-only reserve on Base.

This repo is the V2 research track. The two coexist — V1 serves current needs while V2 explores the multi-asset, commitment-augmented design. Migration path TBD after V2 simulation validates the approach.