Mechanism — Avadhi
Mechanism

How a fixed-rate loan is born.

Five steps, one isolated market, zero surprises between issuance and maturity.

01

Lenders fund the tenor, not a pool.

Capital is committed to a specific market — 30, 90 or 180 days. There is no shared pot blending durations together.

02

A discount note is minted.

The note represents the lender's claim, priced below par using the rate that cleared for that tenor moments earlier.

03

Borrower draws at a locked rate.

Collateral posted, proceeds released now. The rate is fixed the instant the note is minted — it cannot move for the life of the loan.

04

The note accretes toward par.

Value rises on a known schedule between issuance and maturity. No coupon dates, no rate resets, nothing to monitor in between.

05

Maturity: settlement at par.

Borrower repays par, lender redeems at par. The market closes this cycle and opens the next term — clean, every time.

Live Demo

Drag the cycle. Watch the price move.

Scrub the timeline yourself, or let it run. The note's price is a straight, known function of time — that's the entire point.

Testnet simulation · 90-day tenor · compressed timescale

The Math

Discount pricing, worked.

Price = Face / ( 1 + r × ( t / 360 ) )
Face
100.00
Rate (r)
4.65%
Term (t)
90 days
Price
98.85
Litepaper

Read the full spec.

The complete design: clearing mechanics, note issuance, collateral and liquidation rules, and the isolation guarantees between tenors.

Request the PDF v0.1 · pre-audit draft
Contents
01 — Abstractp.1
02 — Mechanism Designp.4
03 — Risk Isolation Modelp.11
04 — Market Parametersp.17
05 — Roadmapp.22

See it isolated, end to end.