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Capital Contracts

Member Flow​

Operator Flow​

Actions​

Quick Summary:​

  1. Members can swap NXM/ETH through RAMM
  2. Operators manage large swaps through CoW Protocol
  3. Circuit breakers protect capital adequacy

1. Member Actions​

  1. Swap NXM/ETH
    • (1a) Member calls swap on RAMM
    • (1b) RAMM validates swap conditions:
      • System not paused
      • Swap not paused
      • Valid deadline
    • (1c) RAMM executes swap with Pool
    • (1d) Pool triggers MCR update
    • (1e) Pool transfers swapped assets to member

2. Operator Actions​

  1. Place Order

    • (1a) Operator calls placeOrder on SwapOperator
    • (1b) SwapOperator validates pre-swap conditions:
      • Token enabled status
      • Balance limits
      • Swap frequency
      • Max fee and slippage
    • (1c) SwapOperator transfers assets from Pool
    • (1d) SwapOperator signs and submits CoW swap order
    • (1e) CoW Settlement executes swap and returns assets to SwapOperator

  2. Close Order

    • (2a) Operator calls closeOrder on SwapOperator
    • (2b) SwapOperator returns assets to Pool

Notes​

  • Circuit breakers limit the amount of ETH/NXM that can be released through RAMM
  • Swap frequency limits prevent rapid trading of assets
  • MCR updates track capital adequacy after swaps