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.

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, not incentives. 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.

Risks and disclosures

Yield is variable and depends on volume, volatility, and adoption. This is a market-structure product, not a guaranteed-return 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.