The procedure
How it works
Four steps. Three of them are ordinary and one is an observation, which is where all the difficulty lives.
Deposit
Send the asset to an Arc and it mints Verniers. The position is valued at the higher of the Arc's last two marks, so the base already inside is never undervalued against new money arriving.
Refuses a deposit that would mint zero shares. Halted by Stow.
Hold
A Vernier is an ordinary ERC-20. No lockup, no queue, no epoch, no whitelist. Transferring one moves the claim and moves no price — which is a property, executed every build.
Sight
Anyone may take a new observation. The Vernier refuses one taken in the same block as the mark it would replace — which is what makes the worse-of-two rule mean anything — and one that moved further in a single step than its band allows. A pool that trades all day does not jump twenty per cent between two blocks, and if it does, that is an incident rather than a price.
The Dip is charged here, on the gain since the last Sight, capped in code. This is a performance fee on a number the Arc cannot verify, which is exactly the practice this site's own thesis makes suspect — hence the cap, and hence the cap being a property.
Fix
Leave in kind — your share of each pot, no price involved — or into one asset at the worse of the last two marks. Stow cannot halt either.
What the owner can do
Four functions, and none reaches the principal
Set the Dip, up to a cap in code. Stow. Hand ownership on. Collect accrued Dip, which is held outside every holder's claim. Fund the convenience exit with USDG.
That list is not a promise, it is the compiled ABI. Every build reads the state-changing functions out
of the contract and compares them to a written-down surface, so a function that was added
fails the build — which is the only way the rescue() sabotage on
/arc is ever caught.