Core Concepts

Value Separation Model

Creek bifurcates gold's intrinsic value into two discrete components utilizing the GSVM's advanced dual-EMA methodology:

• Secure Value (sValue): Derived through the sophisticated formula:

  sValue(t) = α × EMA120(t) + (1-α) × [β × EMA90(t) + (1-β) × SpotPrice(t)]

  This represents gold's fundamental stability valuation, with adaptive weighting that automatically adjusts based on market volatility conditions

• Volatility Value (vValue): Computed as the differential between current market price and sValue:

  vValue = goldPrice - sValue

  This captures price volatility exposure with precision-calibrated boundary conditions

• Dynamic Adaptation: Unlike simple EMA models, the GSVM continuously recalibrates α parameters based on observed market volatility, optimizing stability during turbulent periods and responsiveness during calmer markets

This sophisticated bifurcation mechanism enables precise risk quantification and segregation within the protocol, forming the foundation for Creek's differentiated financial instruments.

Risk and Yield Precision Allocation

Creek implements risk-yield bifurcation through dual tokenization:

• GY (Gold Yield): Represents vValue with inherent leverage characteristics (LR = gPrice/vValue), while conferring protocol revenue rights and yield-generating capabilities.

• GR (Gold Reserve): Embodies sValue, providing stability and functioning as collateral for stablecoin issuance These instruments can be independently allocated to achieve customized risk-adjusted portfolio construction.

GSVM: EMA Dual-Anchor Stability Framework

The GSVM's dual-EMA stability framework demonstrates exceptional characteristics compared to conventional pricing benchmarks:

• Hierarchical time-weighted calibration: EMA120 serves as primary stability anchor with EMA90 providing intermediate responsiveness

• Adaptive volatility response: Dynamic α-parameter auto-calibration optimizes stability-versus-adaptability balance across market conditions

• Enhanced signal processing: Dual-timeframe architecture effectively filters transient price anomalies while preserving significant market signals

• Strategic spot price integration: Controlled incorporation of current market data (through β parameter) ensures contemporary relevance without compromising stability

This sophisticated framework ensures Creek protocol's resilience during extreme market dislocations while maintaining measured responsiveness to legitimate market trends.