Reserve Assets & Backing
DOHM is a reserve-currency token: every DOHM in existence is backed by real assets the treasury holds. This page explains what those assets are and how they are valued.
The numeraire: frUSD
All backing is measured in frUSD, the protocol's unit of account, valued 1:1 with $1 and no oracle. frUSD is also the ideal reserve — a frUSD-denominated deposit needs no price feed and never touches the AMM. A frUSD-dominant reserve is what keeps the protocol's solvency robust: the more of the backing that is stable frUSD, the less it depends on volatile-asset pricing.
Subfrost issues the reserve assets frUSD and frBTC (the stablecoin and wrapped-BTC layer) and hosts the AMM pools swaps run on — see subfrost.io and Swap & Liquidity.
The backing assets
The treasury holds a whitelist of up to 6 assets (a fuel-driven hard cap; frUSD auto-consumes one slot, leaving 5). Each is one of two types:
| Type | Examples | How it's valued |
|---|---|---|
| RESERVE — a single token | frUSD, frBTC, DIESEL | frUSD at 1:1; anything volatile at live AMM spot inside a signed band + minimum-liquidity check |
| LIQUIDITY — an LP token (protocol-owned liquidity) | a DOHM-paired pool position | 2·√(r0_usd·r1_usd) × lp / total_lp (swap-invariant) |
Assets you will commonly see:
- frUSD — the $1 numeraire and stable core of the reserve. Issued by Subfrost as a USD-denominated stablecoin on Alkanes.
- frBTC — wrapped Bitcoin, also issued by Subfrost; a volatile reserve. Because it has no fixed price, bonds that take frBTC use the signed attestation path (see Bonding), and the treasury re-checks live spot against the signed band.
- DIESEL — a mineable Alkanes asset accepted as backing / during the presale.
- POL LP — protocol-owned liquidity: the treasury's own position in a DOHM pool, valued by the √k markdown so a flash swap can't inflate it.
Why valuation is conservative
Every value the treasury credits is conservative and fail-closed:
- A volatile asset that can't be priced at spot (thin liquidity, price outside its band) blocks any operation that would mint against it — it never inflates backing.
- LP is valued by the geometric-mean √k markdown, which is invariant to swaps in the pool, so it can't be pumped.
- Backing is cached and re-anchored on a full live re-value (see Rebasing); an emergency write-down can lower a reserve balance instantly.
The backing invariant
Everything above feeds one rule the treasury never breaks:
reserve_usd × 1e8 ≥ (tracked + pending) × floor
The USD value of all reserves must always cover every DOHM minted plus every DOHM owed to unredeemed bond notes, at the floor price. This is what "backed" means here — not a redemption promise, but a mint constraint. See Treasury & Backing.