> For the complete documentation index, see [llms.txt](https://docs.ufg.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ufg.finance/concepts/v2-treasury.md).

# v2 Treasury

## Treasury v2

Treasury v2 is a second immutable treasury for the same UFG token. It holds sfrxETH, the staked ETH token issued by Frax. v1 is unchanged and holds its ETH reserve.

| Contract                   | Chain           | Address                                      |
| -------------------------- | --------------- | -------------------------------------------- |
| Treasury v2                | Robinhood Chain | `0x8dD84F1901BD74A4D137f0f6a5A3A90E686AAB1D` |
| Funding collector          | Robinhood Chain | `0xD29F10f8C8eB7a545c97675e65cE05fcB01F9a60` |
| Across route (active)      | Robinhood Chain | `0x50abE8Cc5AA187F60948A5d8E402636ecDB44664` |
| Canonical route (fallback) | Robinhood Chain | `0xfFFA6D55091936289A766c0EaCFc710cB17df126` |
| sfrxETH funding helper     | Ethereum        | `0x08f61D23DA752768281e24125Ad9c298b90FEc7f` |

The source code of Treasury v2 and of the helper is verified on Etherscan. Verification of the three Robinhood funding contracts was submitted on September 23, 2026.

### What v2 holds

v2 holds sfrxETH. The value of each sfrxETH share increases with Ethereum staking rewards. The number of shares stays the same. v2 received a first deposit of 0.00803 sfrxETH on September 23, 2026. The balance increases when the funding system delivers more sfrxETH.

v2 does not trade. It has no owner, no pause function, no upgrade path and no parameter settings. No one can change its rules or move its assets.

### Redemption

A holder can redeem UFG through v2. One transaction burns the UFG and makes two payments:

* v1's ETH payout, passed through in full after v1's 2% fee
* 85% of the holder's share of the sfrxETH in v2, paid as sfrxETH

The other 15% stays in v2, so the backing per remaining token increases. The sfrxETH is paid as is. v2 does not sell it for ETH.

v2 calculates each holder's share against the tokens that can still be redeemed or posted as collateral. This excludes the UFG in the Pons launch locker, which can never be withdrawn. v1 includes the locker in its supply.

If the holder's minimum for either payment is not met, or if the v1 payment fails, the transaction is reverted and no UFG is burned. Holders can also redeem directly through v1 under its own rules.

### Loans

A holder can post UFG as collateral and borrow sfrxETH against it. The borrowing limit is 80% of the collateral's share of the sfrxETH in v2. v1's ETH is not included. The interest rate is fixed at 5% a year and compounds every second. Anyone can repay any position. Repayments cover interest first, then principal.

When a position's debt exceeds 84% of its collateral's share, anyone can liquidate it. The whole collateral is burned and the principal is written off. The liquidator receives no payment. The burn reduces the supply, so the backing per remaining token increases. At the 80% limit, with no growth in backing, a position reaches the 84% line after about one year. A borrower closes a position by repaying in full.

A loan must be at least 0.001 sfrxETH. At the current balance of v2, that minimum requires about 143 million UFG of collateral, so no loan can be opened yet. The limit is a fixed fraction of backing, so the required collateral decreases as v2 holds more sfrxETH.

### Funding

A separate set of contracts converts ETH revenue into sfrxETH for v2:

1. The collector on Robinhood Chain receives ETH. Anyone can send a batch of at least 0.1 ETH through the active route.
2. The Across route transfers the ETH to Ethereum in seconds. The canonical bridge route is the permanent fallback and takes about seven days.
3. The helper on Ethereum mints sfrxETH with Frax and transfers it to v2 on Robinhood Chain through Frax's bridge. Anyone can call it.

The sfrxETH is counted as v2 backing when it arrives. The funding contracts have no authority over v2. No role in them can take assets from v2.

No revenue has been routed to the collector yet. The revenue splitter that will route product fees to it is not deployed. Until then, the balance of v2 increases only through loan interest and the 15% retained on redemptions.

### Disclosures

* v1 and v2 have no admin. The funding contracts have two roles. A controller can propose a new route, which becomes active after a public seven-day delay. A guardian can pause new batches for 30 days at a time and can switch to the fallback route at once. Neither role can send ETH anywhere except through a route. Neither role has any authority over v2. Both roles are held by the UFG developer wallet until they are transferred to a multi-sig.
* The reserve of v2 depends on Frax's control of the sfrxETH token on Robinhood Chain. Frax can upgrade that token. If Frax replaced it with a new token, v2 would not recognise the new token.
* Liquidators are not paid. UFG plans to submit liquidation transactions itself, as it does for fee collection on v1. Anyone else may do so.