Docs / Protocol
The Kiln
The house ledger every trade settles against.
The Kiln is the single liquidity pool on the other side of every trade. Nobody deposits into it. It starts at zero and grows only from realised trader losses.
Three regimes
- Above zero: winners are paid in full; losers refill the Kiln and receive CLAY.
- Below zero: winners receive what the Kiln holds and the remainder joins the debt queue, paid in order as new losses arrive. CLAY mints up to 5× faster while the Kiln is below zero, rising over the first three days in that state.
- Above the staker cap ($5M): every further dollar the Kiln earns is distributable to staked CLAY.
The debt queue
Queued payouts are first in, first out. Nothing is forgiven: a winner in the queue is paid in full as soon as enough losses flow in.