Bullion|Protocol Docs

CASE STUDY

Bullion:
Reference Implementation

Bullion is the first production deployment of the Flywheel Protocol. It demonstrates how creator fees from token trading can be routed through the five-layer architecture to deliver real, verifiable rewards to token holders. Every component is open-source and publicly verifiable.

What is Bullion?

Bullion is a tokenized ecosystem where every trade generates creator fees that are automatically converted into SLV (a silver-backed token) and distributed to $BULLION holders. Built on the Flywheel Protocol, it serves as both a proof-of-concept and a production reference for the five-layer reward architecture.

Core Mechanics

1.Every buy and sell of $BULLION generates a 70/30 creator fee split
2.70% of fees route through the Flywheel Conversion Router
3.ETH is swapped for SLV via DEX aggregator with oracle validation
4.90% of SLV streams to $BULLION depositors; 10% to LP stakers
5.Users claim SLV proportional to their $BULLION deposits and time

Architecture Mapping

Bullion maps directly onto the five-layer Flywheel architecture. Here is how each layer manifests in production:

L1 — Revenue Sources

FLYWHEEL (GENERIC)

Any on-chain revenue stream

SILVER SQUEEZE

Creator fees from $BULLION trading. 70% of pool fees flow to the protocol on every buy and sell. The more volume, the more revenue.

L2 — Collection Layer

FLYWHEEL (GENERIC)

Aggregates and pools revenue

SILVER SQUEEZE

ETH from creator fees accumulates in the protocol treasury. When a trigger fires, accumulated ETH is forwarded to the Conversion Router.

L3 — Conversion Router

FLYWHEEL (GENERIC)

Routes revenue through DEX aggregator

SILVER SQUEEZE

ETH routes through WETH → USDG → SLV using a DEX aggregator. Chainlink ETH/USD oracle validates every purchase. Bad prices revert.

L4 — Reward Accounting

FLYWHEEL (GENERIC)

Per-second streaming rewards

SILVER SQUEEZE

SLV streams per-second to $BULLION depositors proportional to their share. 90% to depositors, 10% to LP stakers. Checkpoint-based accounting.

L5 — Settlement Vault

FLYWHEEL (GENERIC)

Holds rewards, processes claims

SILVER SQUEEZE

Silver Rewards Vault holds SLV. Users claim anytime. 1h activation. 5% burn if withdrawn within 24h. 48h withdrawal cooldown.

Token Economics

$BULLION Token

The deposit token. Holders stake $BULLION in the Settlement Vault to earn SLV rewards. $BULLION is the gateway to the reward system — the more $BULLION you stake and the longer you hold, the more SLV you earn.

SLV — Silver Token

The reward token. SLV is purchased on the open market using protocol revenue (creator fees converted through the Conversion Router). SLV is never minted for rewards — it is always bought with real value.

Fee Structure

• 70% of creator fees → Flywheel Protocol → SLV purchase
• 90% of purchased SLV → $BULLION depositors
• 10% of purchased SLV → LP stakers
• 5% penalty burn on early withdrawal
• 30% of creator fees → LP pool (standard DEX fees)

Deployment

Chain

Robinhood Chain (EVM-compatible)

Contracts

All contracts are open-source and publicly verifiable. View on GitHub

Oracle

Chainlink ETH/USD price feed for settlement validation

DEX

DEX aggregator for optimal SLV purchase routing

Key Learnings

01Real yield from trading fees creates natural, sustainable rewards without inflation.
02Oracle-verified conversion is critical — without it, DEX manipulation could drain the reward pool.
03Per-second streaming eliminates timing games. Depositors earn proportionally and continuously.
04The penalty model effectively discourages short-term speculation while keeping the protocol accessible.
05Modular architecture proved its value — each layer could be developed, tested, and optimized independently.
06LP staking creates a virtuous cycle: deeper liquidity attracts more volume, generating more fees for rewards.