Vellum Protocol

I am Vellum, an autonomous on-chain lending protocol operating on Robinhood Chain (Chain ID 4663).

I combine the creator-reward flywheel of Quill with the financial architecture and tokenized collateral markets of loans.fun.

Instead of selling your tokens or equities to unlock liquidity, you can deposit $VELM or tokenized stock assets (AAPL, TSLA, NVDA) into my vault to draw native ETH loans. Trading activity on the Pons V2 curve continuously generates creator taxes, which are harvested into my vault to buffer, hold, and lend back to borrowers.

Unlike off-chain custodial lending agents, Vellum runs on-chain via smart contracts (VellumVault.sol and FeeSplitter.sol).

An autonomous daemon triggers the operational cycle every 60 seconds: checking claimable creator taxes on FeeSplitter, poking price TWAPs on PonsMarket, balancing liquid reserves, and executing vault health checks.

Capital safety comes first. The vault preserves unlent reserves in HoldAdapter (idle native ETH held fully liquid, 0% yield) because Robinhood Chain currently lacks a trustless rate oracle for staked derivative tokens.

In the dashboard's “Where the reserves are” panel, this is tracked as Mode: Held liquid with Time to liquid: instant and Yield adapter: HoldAdapter.

All idle reserves beyond the 25% instant buffer remain 100% backed in native ETH. If a secure, price-audited yield source emerges, the protocol can upgrade the adapter following a mandatory 1-day timelock delay.

Every autonomous daemon tick executes the following workflow:

1. Harvest: Check FeeSplitter.claimable(); if above the fee floor, harvest claimable ETH from PonsV2FeeEscrow.
2. Poke Market: Call PonsMarket.poke() to record price observations for the 30-minute TWAP ring.
3. Buffer Top-Up: If liquid vault reserves fall below 25%, withdraw the deficit from the adapter.
4. Surplus Deposit: If liquid reserves exceed the buffer target, deposit excess into the adapter.
5. Mark & Liquidate: Mark loans against oracle prices, seizing collateral if health < 1.00 or expired 30-day terms.

Holders can open a loan by locking collateral in VellumVault:

• $VELM Collateral: 40% Loan-to-Value (LTV), 60% liquidation LTV, 18.0% flat APR.
• Robinhood Stock Tokens (AAPL, TSLA, NVDA): 50% LTV, 75% liquidation LTV, dynamic 6% to 25% APR based on pool utilisation.
• Term: Fixed 30 days. Borrowers can extend for another 30 days anytime by calling extend() and paying accrued interest.
• Loan Limits: Min 0.005 ETH, Max 5.0 ETH per loan.

A loan is seizable when its Health Factor drops below 1.00 or its 30-day term lapses without full repayment or extension:

The Quill Invariant: Seized collateral is kept in the vault forever. It is never dumped on the open market, preventing death-spiral liquidity drains.

Oracle Protection: Liquidations will strictly revert if an oracle price feed is stale (>26h) or unavailable, preventing predatory liquidations during market halts.

To provide instant borrow fulfillment, the vault maintains a target 25% liquid buffer in native ETH. Borrowers do not experience slippage, queues, or unwinding delays when drawing loans.

At the same time, a hard safety ceiling ensures that no more than 50% of the total book can ever be out on loan simultaneously.

Borrowers earn equity in the protocol. Whenever a borrower pays an origination fee or interest, a dynamic percentage (20% at 0% pool utilisation down to 5% at full utilisation) is used to buy $VELM directly from the market at spot price.

This $VELM is held in escrow against the loan. Upon complete loan repayment, the borrower calls claimRebate() to receive their tokens. If liquidated, the escrowed rebate is burned.

Vellum integrates directly with Pons V2 fair launch economics:

• 3/3 Creator Tax: The token is launched on Pons V2 with creatorTaxBps = 300 (3% tax on buys, 3% tax on sells, denominated directly in native ETH).
• PonsV2FeeEscrow: Collected creator taxes accumulate in the shared Pons fee escrow under the designated recipient (FeeSplitter).
• Harvest Floor: To prevent gas-inefficient micro-claims, FeeSplitter.harvest() requires claimable fees to exceed the fee floor (default 0.0002 ETH).
• 50/50 Split: Each harvest splits collected ETH equally: 50% routes straight into the VellumVault lending book, and 50% routes to the creator wallet.

When cumulative net buys on the Pons bonding curve accumulate 4.2 ETH in real quote reserves, the curve graduates:

• Liquidity Sweep: The curve sweeps all quote and remaining token reserves into a permanently locked full-range Uniswap V4 pool.
• PonsV2MemeHook: Post-graduation swaps run through the verified Pons V4 hook (0xE5e70264...), maintaining the 3/3 creator tax flow into FeeEscrow.
• Seamless Oracle Continuity: PonsMarket automatically queries the curve pre-graduation and switches to Uniswap V4 PoolManager post-graduation.

Vellum is an autonomous protocol operating on live smart contracts. Key risks include contract vulnerabilities, oracle pricing latencies for traditional equities during US market closures, and market volatility of underlying token collaterals.

Never borrow more than you are prepared to forfeit in the event of liquidation.