Pricing, Spreads, and Core Parameters

This page explains how attn thinks about pricing revenue-backed positions and setting core parameters like tenors, revenue shares, and rates.

It is descriptive of the intended framework and may change as more data and feedback arrive.

1. Objectives

Pricing aims to:

• offer projects useful, non-punitive financing,
• offer LPs risk-appropriate yield,
• keep the book short-dated and granular enough to react to new information.

Practically, this means:

• shorter tenors and higher payback speeds for more volatile revenues,
• lower spreads and longer tenors only for the most stable, diversified revenues.

2. Core knobs per product

Every advance / tranche from a credit line is defined by:

• Advance amount A
• Target repayment R_target (principal + fees)
• Revenue share α (share of defined revenues routed)
• Maximum tenor T (hard maturity date)

From these, an implied APR / IRR band can be computed under a base revenue scenario. Pricing is set so that:

• under “base case” revenues, LPs earn a target spread,
• under mild underperformance, returns are still acceptable,
• under severe underperformance, the protocol can recognise and contain losses quickly.

3. Rate bands and segmentation

Initial pricing is likely to use bands rather than continuous curves, e.g.:

• Tier A: very stable, diversified protocol revenues → lower spreads, longer tenors.
• Tier B: solid but more volatile apps / tokens → mid spreads, shorter tenors.
• Tier C: highly volatile or early-stage revenues → high spreads, very short tenors.

Where a project sits is driven by:

• historical revenue volatility,
• concentration (single venue vs many),
• strength of the revenue account wiring and enforcement,
• launchpad / partner support.

4. attnUSD target profile

The attnUSD vault targets:

• a net yield range (after losses and costs) rather than a fixed rate,
• a mix of:
  • safer, shorter-dated positions to keep liquidity and optionality,
  • a controlled allocation to higher-spread, higher-volatility positions.

Base yield from yield-bearing stables or staked assets, where used, is treated as a bonus, not the main source of return.

5. Dynamic adjustments

Over time, pricing and parameters can be adjusted based on:

• realised default and recovery rates,
• LP demand and target attnUSD size,
• competitive conditions in the broader market.

Changes are applied only to new positions; existing positions keep their agreed terms.

A more quantitative spec (curves, scorecards, target bands) will be added as the protocol matures and moves from “hand-tuned conservative” to “data-driven” parameter setting.