Malleable GoldMalleable GoldIN BETAINVEST
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On-chain ETF protocolSolana nativeFee-driven yield

Documentation

Everything you need to understand how Malleable Gold works, how NAV is enforced, how yield is generated, and how anyone can create their own ETF.
Malleable Gold

Overview

Malleable Gold is an on-chain ETF protocol on Solana. It enables fully backed index tokens with continuous mint and redeem, arbitrage-enforced price parity, and fee-driven yield.

Fully backedContinuous mint/redeemNo emissionsArbitrage enforcedPermissionless ETF creation
What this docs covers
How the ETF works, how price tracks NAV, how yield is generated, what risks exist, and how anyone can create an ETF. Modules below cover Stake, decentralised OTC, and the token-backed NFT launchpad.

How the ETF works

Structure

Each ETF token represents a fixed-weight basket of underlying assets. The backing is held on-chain and is verifiable. The ETF token is fully backed at all times.

  • One index token per ETF
  • Backing held on-chain, transparent reserves
  • No leverage, no synthetic exposure

Minting

Users mint ETF tokens at NAV by depositing the underlying assets in the correct ratio. A mint fee applies. Minting increases ETF supply and increases backing reserves.

Mint flow
Deposit basket → NAV mint → receive ETF tokens

Redeeming

Users redeem ETF tokens at NAV by burning the ETF token and receiving the underlying basket. A redeem fee applies. Redeeming reduces supply and returns reserves.

Redeem flow
Burn ETF tokens → NAV redeem → receive basket

Trading

The ETF token trades against USDC in a single liquidity pool. This concentrates liquidity, tightens spreads, and maximizes fee capture.

  • Primary market: mint/redeem at NAV
  • Secondary market: ETF/USDC pool

How price tracks NAV

Price parity is enforced by arbitrage. When the ETF deviates from NAV, arbitrageurs mint or redeem until the price converges.

ETF trades above NAV
Premium arbitrage
  • Buy underlying basket
  • Mint ETF at NAV
  • Sell ETF into pool
  • Capture spread
ETF trades below NAV
Discount arbitrage
  • Buy ETF in pool
  • Redeem ETF to basket
  • Sell underlying assets
  • Capture spread
Important
The tighter the total roundtrip cost (LP fees + mint/redeem fees), the tighter the expected peg band.

How yield works

Yield is fee-driven. It comes from real economic activity, primarily arbitrage volume that keeps the ETF aligned to NAV. There are no emissions and no inflationary incentives.

LP trading fees

Every trade in the ETF/USDC pool pays fees to liquidity providers. Arbitrage loops create consistent flow during volatility. More volatility generally means more arbitrage, more volume, and higher fee capture.

Mint and redeem fees

Every mint and redeem charges a platform fee. This captures protocol revenue even if pool liquidity is owned by third parties. Fees are paid in real assets.

What yield is not
  • Not emissions
  • Not token inflation
  • Not leverage

Permissionless ETF creation

Malleable Gold is infrastructure. Anyone can create an on-chain ETF, define the basket, and launch it with the same mint/redeem and arbitrage framework.

You define
  • Assets in the basket
  • Weights
  • Fees
  • Launch parameters
Protocol provides
  • NAV calculation and reserve accounting
  • Mint/redeem rails
  • Pool integration patterns
  • Fee accounting
Next module
A step-by-step “Create an ETF” guide slots here once the creation UI is finalized.
Optional

Modules

The ETF is the core product. These modules use the same on-chain rails and can be used independently.

Module
Stake
Stake your ETF LP position and earn 50% of protocol revenue from mint and redeem fees.
Module
Decentralised OTC
Wrap tokens into an NFT, sell on a marketplace, buyer unwraps to receive the tokens.
Module
Token-backed NFT Launchpad
Create token-backed NFT collections. Redemption is burn-to-redeem, so supply can shrink over time.
Quick navigation
Module

Stake

Stake lets you stake your ETF LP position and earn 50% of protocol revenue generated from mint and redeem fees. Your LP trading fees still accrue normally based on pool activity.

What you stake
  • Your ETF/USDC LP position (LP token or LP NFT)
  • Staking does not change your underlying exposure
  • You can unstake at any time (cooldown may apply depending on final parameters)
What you earn
  • 50% of protocol mint and redeem fees
  • Paid in real assets collected by the protocol
  • Accrues pro-rata based on your share of staked LP
Simple flow
Provide liquidity → receive LP position → stake → earn protocol revenue share
Module

Decentralised OTC

Decentralised OTC enables peer-to-peer settlement using an NFT wrapper. The seller wraps tokens into an NFT and lists it on a marketplace. The buyer purchases the NFT and unwraps it on-chain to receive the underlying tokens.

Why use it
  • Move size without AMM slippage
  • Simple settlement through NFT marketplace rails
  • The NFT is the claim ticket to the underlying tokens
Simple flow
  • Seller wraps tokens → receives an NFT
  • Seller lists NFT on secondary market
  • Buyer buys NFT
  • Buyer unwraps → receives tokens
Notes
  • Marketplace fees depend on the venue
  • Unwrapping is permissionless, whoever holds the NFT can unwrap
Module

Token-backed NFT Launchpad

The launchpad lets any SPL token be used to create an NFT collection backed by that token. Redemption is burn-to-redeem, so the collection can be deflationary as NFTs are redeemed.

What it creates
  • An NFT collection with token-backed redemption value
  • On-chain reserves allocated to redemption
  • Burn-to-redeem redemption rails
Simple flow
  • Creator deposits SPL tokens as backing
  • Collection mints NFTs that represent a claim on backing
  • User burns NFT → receives the backing tokens
Why burn-to-redeem matters
Redeemed NFTs are destroyed, so circulating supply can only go down through redemption.

Risks and disclosures

Yield is variable and depends on volume, volatility, and adoption. This is a market-structure product.

Key risks
  • Early volume uncertainty
  • Smart contract risk
  • Oracle risk
  • Liquidity and spread risk
Mitigations
  • Fully backed reserves
  • Continuous redeemability
  • No emissions, no reflexive unwind mechanics
  • Transparent on-chain accounting

FAQ

Is the ETF ever undercollateralized?

No. The ETF is fully backed at all times.

Can I redeem at any time?

Yes, there are no limits or restrictions on redemption.

Where does yield come from?

LP trading fees and protocol mint/redeem fees.

Is there a governance token?

No, there is not a governance token.

© 2026 Malleable Gold