01 / The proposition
Grove is a proposed treasury and fee-sharing protocol for Robinhood Chain. Bonding acquires reserve assets in exchange for newly issued, vesting tokens. The treasury owns a capped liquidity position. Eligible fees are reconciled and split between eligible stakers, retained treasury assets and a liquidity budget. More reserves can support more liquidity, but fees require external trading demand; the cycle can slow, reverse or stop.
This is a design specification and a working scenario calculator, not a deployed financial protocol. No Grove contract, funded treasury, bond market, staking vault or distribution is connected to this site. The proposed ticker is $GROVE. Supply and launch allocations have not been approved.
Grove is a working name already used by an unrelated DeFi protocol at grove.finance. This independent concept has no affiliation with that protocol, Olympus or Robinhood. A cleared name and ticker are required before a public token release.
02 / Where fees come from
The initial proposed source is the treasury’s own share of swap fees from an approved liquidity position. Only collected fees, converted into the selected settlement asset after execution costs, qualify. Grove does not claim all fees from a pool. Exchange, router and liquidity-provider splits must be verified for the selected venue.
Bond deposits, token issuance, treasury transfers, borrowed principal, incentive-token emissions and unrealized gains are not eligible fee income. LP principal withdrawals are asset movements, not income. Third-party token incentives are reported separately and excluded from the initial distributable pool. Protocol-funded wash volume must not count as external demand.
No venue or settlement token has been selected. The launch specification must identify deployed contracts, pool fee tier, treasury LP ownership, collection method, conversion limits and related-party activity. Until then there is no operating revenue to distribute.
03 / Treasury accounting
Three ledgers stay separate: contributed capital, realized operating result and distribution liabilities. The treasury inventory reports asset quantities, source records, valuation timestamps, restrictions, haircuts and custody addresses. Encumbered assets and already allocated rewards cannot be spent a second time.
Adjusted NAV equals conservative external-asset value less liabilities, claim reserves and recognized losses. Grove’s own token is valued at zero for this metric. An LP holding is decomposed into its underlying assets; the Grove side is excluded and the external side is conservatively valued. This is intentionally different from quoting gross treasury market value.
Adjusted backing per token equals adjusted NAV divided by total issued supply plus irrevocably committed but unminted tokens, excluding only verified burns. Staked and vesting tokens remain in this denominator. Backing is an accounting indicator, not a price peg, redemption right or guaranteed exit price.
A proposed risk envelope requires at least 50% of free adjusted NAV in unencumbered settlement reserves, caps LP exposure at 25%, and leaves the remainder in approved liquid external assets. These are design limits, not actual holdings. No lending, leverage or credit strategy is included initially. If reserves breach the floor, new bonds, new LP allocations and new reward allocations pause while existing funded claims remain ring-fenced.
04 / Bonding without hidden dilution
A buyer exchanges an approved reserve asset for a fixed token entitlement released linearly over 14 days. The deposit is irrevocable after acceptance; unvested tokens cannot be staked. This instrument is a token purchase with vesting, not a debt security promising repayment. A discount to market price is not guaranteed profit.
A quote shows the asset received, net value after fees and haircuts, oracle timestamp, market reference, discount, token amount, vesting start/end, fully diluted supply impact and pre/post adjusted backing. Deposits remain capital even if the bond is priced above accounting backing.
The quoted price is reference price × (1 − discount). Tokens committed equal net deposit value ÷ quoted price. The post-bond backing test is (adjusted NAV + net deposit value) ÷ (committed supply + new tokens) ≥ pre-bond adjusted backing. Issuance is rejected if that test fails. The model assumes the deposited reserve is unencumbered and immediately recognized at its haircut-adjusted net value.
A second proposed gate caps committed bond issuance in a rolling 30-day window at 2% of the fixed supply snapshot at that window’s start. The calculator uses its supply input as this snapshot and pre-bond committed supply, so it models a single window without other intervening supply changes. Production accounting must track these quantities separately. Governance must also set per-asset and per-market capacities.
Price references need a manipulation-resistant observation window, minimum market depth, freshness limits and deviation checks. A spot-price spike must not open unlimited discounted issuance. Quotes expire and buyers set maximum price/minimum tokens before submission. When a suitable oracle or sufficient liquidity is unavailable, bonding stays closed.
05 / Protocol-owned liquidity
The treasury, rather than a temporary external depositor, controls the approved LP position. This can provide persistent trading liquidity and direct the position’s fee income to the protocol. It does not guarantee deep markets or make impermanent loss disappear.
The initial LP budget can contain only retained assets and the separately allocated liquidity share of net income. Creating Grove-side liquidity requires tokens from a disclosed initial allocation or approved issuance; it cannot bypass supply caps. LP value, fee collections, slippage and inventory changes are reported independently.
Realized LP losses reduce the eligible result. Mark-to-market impairments affect reserve coverage even before realization, so a profitable fee line alone cannot justify a distribution. There is no automatic buyback floor and no treasury promise to absorb token sales.
06 / The seven-day settlement
Proposed epochs last seven days. At close, the accounting process reconciles settled eligible fees, approved operating expenses, realized losses, required reserve top-ups and any uncovered deficit carried forward. Each item has its own source record; an expense or top-up cannot be deducted twice.
Available result = fees − costs − realized losses − required reserve top-up − prior uncovered deficit. Distributable net = max(0, available result). New uncovered deficit = max(0, −available result). Negative periods pay no new rewards. The deficit carries forward until recovered or resolved through an explicitly disclosed recapitalization; capital is never reclassified as fee income.
After the reserve-coverage and reconciliation gates pass, the proposed split is 50% for eligible stakers, 30% retained in treasury and 20% reserved for liquidity. It applies to net income, not gross turnover or bond deposits. Claim reserves are funded in the approved settlement asset before entitlements are published. New allocations cannot spend existing claim reserves.
Example in arbitrary accounting units: 10,000 fees less 2,000 costs, 1,000 losses and 1,000 reserve top-up leaves 6,000 net. This creates a 3,000 staker pool, 1,800 retained treasury and 1,200 liquidity budget. These values are a scenario, not forecasts or operating results.
If eligible total weight is zero, the staker share remains in a segregated pending-distribution reserve and is not assigned retrospectively to a later depositor. Governance must resolve its treatment under published prospective rules.
07 / Staking and exit
The proposed staking receipt represents deposited Grove tokens at a 1:1 unit relationship. The receipt does not rebase. Fee entitlements are paid separately in the settlement asset. Staking is participation in this protocol’s allocation policy, not blockchain validation.
New deposits begin accumulating weight at the next epoch boundary. Weight is token-seconds held as active stake during the epoch; no multiplier or referral boost applies. An exit request stops further weight accrual immediately and starts a seven-day cooldown. Weight earned before exit remains eligible. The principal is then withdrawable subject to contract integrity and a narrowly defined emergency pause.
Participant allocation = funded staker pool × participant token-seconds ÷ total eligible token-seconds. Integer rounding is downwards; residual dust remains in the claim reserve. A final claim record binds epoch, participant, amount, policy hash and settlement asset, with protection against duplicate claims.
Existing claim entitlements and vested bond rights cannot be overwritten by a new policy version. The initial design does not grant tokenholders ownership of treasury assets, a direct redemption right or a fixed income entitlement. Final contractual rights and jurisdictional eligibility must be published before deposits open.
08 / Policy and control
The proposed operating model uses a 3-of-5 multisig behind a 72-hour timelock for upgrades, new assets, LP venue selection and prospective parameter changes. Signers, deployed controls and onchain permissions are not yet appointed. These are proposed requirements, not existing security guarantees.
A separate guardian may pause new deposits, bond issuance and new allocations for up to 72 hours. Extending a pause requires the timelock. Pausing new business should not sweep claim reserves or rewrite funded entitlements. A discovered asset or contract exploit can still make withdrawals unsafe; the exact recovery process must be specified and reviewed.
The accountable roles are fee collector, treasury custodian, policy executor, settlement publisher and pause guardian. Their permissions should be isolated. Allocation proposals, source records, conflicts of interest, policy changes and emergency actions must be public. Governance capture and multisig compromise remain risks even with these controls.
09 / Supply and launch terms
No total supply, genesis allocation or token address has been finalized. The proposed $GROVE ticker is not cleared. A public launch must publish genesis supply, circulating supply, vesting allocations, treasury-owned tokens, mint/burn permissions, outstanding bond commitments and a machine-readable supply reconciliation.
The economics do not require staking emissions, perpetual inflation or a promised APY. Bond issuance is still dilution: a non-bonding holder’s percentage ownership falls even when adjusted backing per token rises. Both measures must be displayed. No growth target or token-price projection belongs in the return calculation.
10 / Failure cases
Low volume: collected fees may not cover operating costs, so no new distributions are allocated. New bond capital can increase reserves while fee income remains zero. Those two facts must be shown independently.
Asset stress: settlement assets can depeg, custody can fail and liquidity can evaporate. Haircuts and reserve floors reduce accounting optimism but do not prevent loss. Any external asset integrations add their own issuer, bridge, oracle and contract risks.
Market stress: LP inventory can lose value, tokens can trade below adjusted backing, and bond discounts can become losses during vesting. Staking locks can delay an exit into a falling market.
Operational stress: compromised signers, contracts, accounting inputs or policy execution can misallocate funds. Reviews and audits cannot guarantee safety. Fee-sharing, bonding and token rights also require a jurisdiction-specific legal and tax assessment before offering them to users.
11 / Release record
Current release: website, documentation and local scenario arithmetic. No wallet connection, custody, mainnet contract, token distribution or financial transaction functionality is included. The calculator runs entirely in the browser and stores no wallet or user data.
Before accepting assets: clear the project identity; finalize token economics and legal rights; select settlement assets, pools and oracles; implement contracts and reconciliation; complete independent reviews; rehearse positive, zero-income, loss, stale-oracle and emergency epochs; publish addresses and permissions; and verify reserve/claim segregation.
Official social accounts and a public domain remain unassigned. This private collection is for reviewing the concept. No links to unrelated Grove accounts are presented as official project accounts.
12 / Research basis
Olympus provides the precedent for protocol-held reserves and liquidity. Its current documentation distinguishes that treasury architecture from historical rebasing: the old rebase mechanism has ended, while staking can still support governance and other protocol interactions. Grove therefore does not describe legacy OHM APY as current fee revenue.
Olympus also documents convertible deposits. Grove’s fixed token-purchase-and-vesting proposal is a different instrument; it does not claim the conversion or reclaim rights of that product. The fee split, staking weights, reserve floor, vesting period and issuance cap on this site are original proposed Grove policy choices, not Olympus parameters.
Sources reviewed on 9 September 2026 are linked below. This research establishes conceptual references; it does not establish deployment compatibility, profitability or investment suitability.