The vault.
Every active protection is backed by money already set aside. The protocol never sells more protection than it can pay out — capacity is checked before a single premium is taken.
reserved collateral against deposits · buffer — held back at all times
Most of every premium flows to backers pro rata — Sherwood keeps —%. Payouts are borne the same way. Only the part of your stake that is not promised to an active note can ever be withdrawn.
- Capacity is checked before any premium is collected
- Reserved collateral covers every active note's maximum payout
- A 20% reserve buffer stays unencumbered at all times
- Payouts re-verify the vault's real token balance at settlement
- No withdrawal — backer or protocol — can take funds an active note needs
All of these are enforced on-chain and covered by the test suite, including a fuzzed hold-over-sequence invariant.
Need test USDG?
Robinhood Chain testnet drips ETH and stock tokens, but not the MockUSDG Sherwood settles in. The faucet pays 1,000 TESTNET USDG per address every 24h, claimed from your own wallet.
- Your balance
- —
- Next claim
- checking…
Connect your wallet (top right) to claim test USDG — the faucet pays the connected address, never a backend signer.