Uniswap Pool

The Uniswap V4 USDREFI/USDC pool is the sole exit path for USDREFI holders under normal operations. It functions as a concentrated liquidity pool designed to maintain a tight peg around $1.

Pool Parameters

Parameter
Value

Pair

USDREFI / USDC

Target price

1.000

Price range

0.995 – 1.005

Fee tier

0.01% or 0.05%

Initial POL

~$5,000 from treasury

LP incentives

Separate Merkl campaign or $REFI gauge

Chain

Celo mainnet

Why Swap-Only Exit

USDREFI does not allow direct vault withdrawals because the underlying capital is deployed into real-world lending with fixed durations. The vault cannot instantly liquidate these positions to honour redemptions. Instead, the Uniswap pool provides continuous secondary market liquidity, allowing holders to exit at market price.

This is a deliberate design choice — not a limitation. It keeps the vault simple, avoids redemption-run risk on illiquid underlying assets, and aligns exit liquidity with actual market demand.

Protocol-Owned Liquidity (POL)

The protocol seeds the pool with ~$5,000 of initial liquidity from the treasury. This ensures the pool has baseline depth from day one, before external LPs join. As the protocol earns yield surplus, additional capital is allocated to deepen POL over time.

LP Incentives

External LPs are incentivised through a separate Merkl campaign distributing $REFI tokens. Since the pool is the only exit mechanism, maintaining healthy depth is critical — LP incentives are sized accordingly.

Liquidity Risk Management

Several safeguards monitor and protect pool health:

  • Dune dashboard tracks pool depth, trade volume, and USDREFI/USDC price ratio in real-time

  • Alerts fire if liquidity drops below a safety threshold

  • Frontend warnings show pool liquidity and estimated price impact before any swap

  • Recommended max swap is $2,000 — amounts above this trigger a red warning with a mandatory confirmation checkbox

  • Emergency fallback — the Foundation Safe can enable direct vault withdrawals if the pool loses critical liquidity

For Users: Exiting USDREFI

To exit your position:

  1. Go to the Swap-to-Exit section in the app

  2. Enter the amount of USDREFI you want to sell

  3. Review the Uniswap quote: estimated USDC received, pool liquidity, and price impact

  4. Confirm the swap

The swap routes through the Uniswap V4 swap router. The price should be close to 1:1 under normal conditions, but this is a market swap — not a vault redemption — so the price may differ slightly.