AEVRA: The Two-Layer Framework Behind Treasury Redemption
Where does the money for a treasury redemption come from, and what happens when the currently available funds are insufficient? AEVRA's Treasury Swap design assigns responsibilities across two layers of protocol funds.
The first layer: the strategic redemption reserve
Eligible AEV earned within the DApp, not withdrawn and in a redeemable state, can be submitted for Treasury Swap under the protocol's rules. The first layer is the Strategic Redemption Reserve.
Its redemption capacity depends on the USDT actually available in that reserve. Capacity is not the same thing as a token price: one USDT of available funds does not mean that one AEV has a fixed value of one USDT.
The reference value used at settlement is WRP, formed under the specified trading-pool rules. It can change with market and protocol conditions; it is not a fixed-price promise.
The second layer: treasury emergency liquidity
If the first layer cannot cover a request, the rules use its remaining available funds first. Eligible Treasury liquidity in the second layer then immediately assumes the remaining responsibility.
In an extreme emergency, available second-layer funds may be used below the normal Treasury policy safety threshold. That does not make funds unlimited: if available funds are exhausted, redemption capacity may temporarily be zero.
When both layers are insufficient
Treasury Swap can execute partially. The unfilled AEV remains pending and the user may cancel the unfilled portion; an already completed portion cannot be reversed. Pending amounts do not lock in an old price: each later fill uses the WRP applicable at that time.
Multiple requests may be submitted concurrently. When pending requests compete for newly available funds, execution follows on-chain transaction order; it should not be presented as a promise of a special economic priority.
A separate market route
The designated AEV/USDT pool is market infrastructure, not a third layer of Treasury Swap. After claiming AEV to an external wallet, a user may consider market trading. Claimed AEV cannot be deposited back into the DApp and permanently loses Treasury Swap eligibility. Market trading also involves price movements, liquidity and fees.
The two-layer design makes funding responsibilities and shortfalls easier to understand; it does not guarantee that every request can always be filled in full. Reserve funding and market-pool liquidity follow different rules and should not be treated as the same source.
Before acting, users should consider eligibility, the quote and minimum acceptable price, current funds, and any transaction or realized-gain fees. Those conditions matter more than treating the word “reserve” as a guarantee.