Terminology

Component

Token	Definition	Key Features
XAUm	Physical gold-backed token serving as Creek Protocol's foundational asset	1:1 backed by physical gold reserves, Primary asset for staking and redemption, Maintains direct gold price correlation
Gold Reserve (GR)	Synthetic token representing gold's stable value component	Minted at 1 XAUM = 100 GR ratio, Embodies EMA-derived baseline value (sValue), Primary collateral for GUSD with 85% initial ratio
Gold Yield (GY)	Synthetic token capturing gold's volatility component	Generated at 1 XAUM = 100 GY ratio, Represents price differential from stable value, Features 10×-30× dynamic leverage mechanism
GUSD	Gold-backed USD-pegged stablecoin	Maintains strict 1:1 USD parity, Collateralized by GR tokens at 85% ratio, Protocol's primary medium of exchange
CREEK	Governance token for protocol administration	Enables proposal creation and voting, Required for Insurance Fund participation, Powers progressive decentralization roadmap

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Terms

Term	Definition	Technical Specification
Value Separation Model	Creek's innovation bifurcating gold value into stable and volatile components	Decomposes gold into sValue and vValue, Creates tradeable stability and volatility exposure, Enables precision risk management
GSVM (Gold Stability Valuation Mechanism)	Sophisticated pricing oracle decomposing gold prices	Dual-EMA methodology (120-day + 90-day), Adaptive parameter calibration, Real-time volatility adjustment
sValue (Stable Value)	Gold's fundamental stability component derived through GSVM	Formula: α × EMA120 + (1-α) × [β × EMA90 + (1-β) × Spot], Represents intrinsic gold value, Basis for GR token pricing
vValue (Volatility Value)	Gold's volatile component capturing market movements	Formula: goldPrice - sValue, Tracks price volatility exposure, Basis for GY token leverage
Insurance Fund	Protocol's financial backstop mechanism	Receives 15% of daily protocol revenue, CREEK stakers gain voting rights, Provides up to 20% loss coverage
Liquidation Incentive Structure	Multi-tiered reward system for liquidators	Base 7% discount on collateral, Urgency bonuses: +1% (HF <103%) +2% (HF <101%), Maximum 10% combined incentive
Volatility Regime Classification	Dynamic market condition assessment system	Standard: ±15% of 180-day average, Elevated: >15% deviation, Extreme: >40% deviation
Unified Distribution Model	Transparent revenue sharing framework	35% to GR holders 35% to GUSD LPs, 15% to Insurance Fund 15% to team, Immutable allocation structure

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Actions

Action	Definition	Mechanism
Stake	Primary method for Creek Protocol participation	Lock XAUM tokens in StakingPool contract, Instant minting of 100 GR + 100 GY, No lock-up period 0.001 XAUM minimum
Redeem	Convert synthetic tokens back to XAUM	Burn 100 GR + 100 GY = 1 XAUM, Must burn equal amounts, Supports partial redemption
Borrow	Mint GUSD stablecoin against collateral	Full-vault mode with multiple collateral types, Weighted average LTV calculation, Real-time health factor monitoring
Repay	Repayment mechanism for borrowed GUSD	Full or partial repayment options, Dynamic stability fees (3%-17% annually), Maintains vault health constraints
Deposit	Add collateral to borrowing vault	Supports multiple token types (GR SUI USDC), Real-time LTV recalculation, Increases borrowing capacity
Withdraw	Remove collateral from vault	Constrained by healthy LTV maintenance, Selective withdrawal by collateral type, Prevents liquidation-triggering over-withdrawal
Collect Rewards	Claim protocol revenue distributions	Internal rewards from protocol fees, External rewards from staking pools, Daily revenue distribution system
Liquidation	Soft liquidation mechanism for risk management	Triggered at Health Factor <1.00, Maximum 50% collateral per transaction, Base 7% discount + urgency bonuses
Governance	Community-driven protocol parameter management	Proposal creation requires 50,000 CREEK tokens, 2M token quorum (2% total supply) required, 2-day review + 5-day voting + 2-day execution

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Key Advantages

What Makes Creek Protocol Unique?

• Seamless Value Separation: Automatically decomposes gold into stable and volatile components

• Liquid Composability: All tokens remain fully tradeable and composable across DeFi

• Risk Precision: Users gain granular control over stability vs volatility exposure

• Capital Efficiency: Optimized collateralization ratios maximize user capital utilization

Backed by Real Gold Reserves: All Creek Protocol tokens maintain transparent, auditable backing through physical gold custody and smart contract mechanisms.