FerroCore Design
AIA plain-language design record for FerroCore.
Purpose
FerroCore turns the indicator suite into inspectable market research and, later, hardened strategies without rebuilding the retired synthCore frontend prematurely.
Minimum viable product
The first real MVP is a dynamic multi-timeframe crypto-native rebalancer. BTC and ETH are the minimum scope; ETH-equivalent assets and their added yield/risk trade-offs must be handled explicitly without unreasonable exposure such as leverage.
The broader design is a Sector Rebalancer organized around mostly Etherian-focused total addressable markets. The exact sector map, assets beyond the MVP floor, weights, and rebalance rules remain open design decisions.
Portfolio posture
Zero direct stablecoin exposure is being taken seriously. The direction is a deliberate move back toward more traditional crypto exposure after the synthCore-era analysis of centralized and decentralized exchange orderflows.
Indicator path
- Continue converting the indicator suite coherently.
- Publish the original Pine indicators over the next season.
- Maintain parity or better with relevant open-source indicators.
- Use the clearer indicator layer as the basis for later hardened strategies.
Asset research
Class I: Sovereign Core
ETH (Ethereum)
Markets: Sovereign Layer 1, Base Collateral, Gas Asset.
Mechanism: Native gas and security asset of the Ethereum network. Value accrues via transaction fee burning (deflationary pressure) and proof-of-stake validation yields.
BTC (as WBTC / Wrapped Bitcoin)
Markets: Sovereign Layer 1, Base Collateral.
Mechanism: Custoded asset mapped 1:1 to an ERC-20 token. Value accrues from global monetary premium, absolute scarcity, and capital flight utility.
Class I Sub-Class: LST ETH Equivalence
This subclass applies strictly to stETH, rETH, and direct liquid staking equivalents; it does not extend to restaking or other asset wrappers.
stETH (Lido Staked ETH)
Markets: Liquid Staking (LST), DeFi Collateral.
Mechanism: Liquid receipt token for staked ETH managed by Lido. Value accrues dynamically as Ethereum validation rewards compound directly into the token balance.
rETH (Rocket Pool Staked ETH)
Markets: Liquid Staking (LST), DeFi Collateral.
Mechanism: Liquid receipt token for staked ETH managed by Rocket Pool. Value accrues via a climbing exchange rate relative to ETH as validation rewards accumulate in the pool.
Class II: Infrastructure Blue-Chips
LDO (Lido Finance)
Markets: Liquid Staking Governance.
Mechanism: Governance token for the Lido DAO. Value is derived from governance control over node operator registries and the protocol treasury, which captures a 10% fee on all generated staking rewards.
RPL (Rocket Pool)
Markets: Liquid Staking Governance, Node Collateral.
Mechanism: Utility and insurance collateral token for Rocket Pool node operators. Value accrues via mandatory operator bonding ratios and direct ETH fee-switch revenue distributions from protocol commissions.
LINK (Chainlink)
Markets: Decentralized Oracles, Data Infrastructure.
Mechanism: Native utility token for the Chainlink network. Value accrues via systemic demand from smart contracts paying node operators for data delivery, with security enforced by node staking requirements.
AAVE (Aave)
Markets: Credit & Lending Money Markets.
Mechanism: Governance token for the Aave ecosystem. Value accrues via governance control over systemic risk parameters and protocol fee-capture allocation used for token buybacks and reserves.
SKY (Sky, formerly MakerDAO)
Markets: Decentralized Stablecoins, Real-World Assets (RWA).
Mechanism: Governance and utility token backing the USDS stablecoin system. Value accrues from net interest margins generated by underlying collateral assets, primarily institutional allocations to US Treasury bills.
UNI (Uniswap)
Markets: Automated Market Makers (AMM), Liquidity.
Mechanism: Governance token for the Uniswap protocol. Value is driven by governance power over fee-switch architectures that route a percentage of pool swap fees directly to token stakers.
ENS (Ethereum Name Service)
Markets: Decentralized Identity, Domain Registries.
Mechanism: Governance token for the ENS registry. Value accrues via predictable cash flows generated by annual registration and renewal fees paid directly into the DAO treasury.
Class III: Execution Beta & L2s
OP (Optimism)
Markets: Layer 2 Scaling, Superchain Infrastructure.
Mechanism: Governance token for the Optimism network and the OP Stack. Value accrues from L2 sequencer revenue and governance control over the shared Superchain allocation treasury.
ARB (Arbitrum)
Markets: Layer 2 Scaling.
Mechanism: Governance token for the Arbitrum ecosystem. Value accrues through governance power over base network upgrades, layer fees, and large ecosystem capital allocations.
MNT (Mantle)
Markets: Layer 2 Scaling, Treasury Management.
Mechanism: Native gas and governance token for the Mantle network. Value accrues from L2 transaction fees and structural deployment yield from its multi-billion-dollar protocol treasury.
AZTEC (Aztec)
Markets: Layer 2 Scaling (Privacy-Native ZK).
Mechanism: Native execution token for a private ZK-rollup. Value is driven by network transaction fee demand from users executing private smart contracts.
STRK (Starknet)
Markets: Layer 2 Scaling (ZK-Rollup).
Mechanism: Gas, staking, and governance token for the Starknet L2. Value accrues via Cairo-based execution fees and validation staking requirements.
ZK (zkSync)
Markets: Layer 2 Scaling (ZK-Rollup).
Mechanism: Governance and utility token for zkSync Era. Value accrues from fee market processing and consensus-level staking rules within the ZK-credential system.
RAILGUN (Railgun)
Markets: Privacy Infrastructure (On-Chain Smart Contract).
Mechanism: Utility and governance token for the Railgun privacy pool. Value accrues via a direct share of protocol fees collected when assets are shielded, unshielded, or swapped privately.
IMX (Immutable X)
Markets: Layer 2 Scaling (Gaming/NFT Specific).
Mechanism: Utility and staking token for the Immutable ecosystem. Value accrues from a mandatory structure where 20% of all platform NFT protocol fees are paid in IMX, then bought back and distributed to stakers.
EIGEN (EigenLayer)
Markets: Restaking Coordination, Intersubjective Security.
Mechanism: Coordination token designed to secure Actively Validated Services (AVSs). Value accrues from its utility in enforcing crypto-economic guarantees against faults that cannot be mathematically proven on-chain.
AERO (Aerodrome)
Markets: Layer 2 Liquidity (Base Network).
Mechanism: Emissions and voting token utilizing a ve(3,3) architecture. Value accrues to locked veAERO tokens via 100% distribution of swap fees and voter bribes generated on the Base network.
Class IV: Active Management / High-Variance Assets
MORPHO (Morpho)
Markets: Credit & Lending Optimization.
Mechanism: Governance token for isolated lending primitives. Value is driven by capturing market share from traditional pools by dynamically matching lenders and borrowers peer-to-peer.
XMR (Monero)
Markets: Sovereign Layer 1, Absolute Privacy.
Mechanism: Native utility token for an independent, privacy-isolated blockchain. Value accrues from transactional use-case demand, complete untraceability (stealth addresses, ring signatures), and censorship resistance.
GMX (GMX)
Markets: Perpetual Exchanges (DEX).
Mechanism: Governance and utility token for a decentralized leverage trading platform. Value accrues via direct fee-sharing: stakers receive a 30% cut of all platform protocol fees paid in native assets.
DYDX (dYdX)
Markets: Perpetual Exchanges (Appchain).
Mechanism: Native gas and validation staking token for the dYdX Cosmos-based chain. Value accrues via 100% redistribution of all network trading fees to token validators and stakers.
DRV (Derive, formerly Lyra)
Markets: Decentralized Options & Derivatives.
Mechanism: Governance and value-capture token for the Derive L2 app-chain. Value accrues via programmatic token buybacks funded directly by platform exchange execution fees.
SNX (Synthetix)
Markets: Derivatives Liquidity Provision.
Mechanism: Backing collateral token for synthetic liquidity pools. Value accrues through a direct cut of trading fees generated by front-end platforms routing leverage volume through the Synthetix core engine.
YFI (Yearn Finance)
Markets: Yield Aggregation vaults.
Mechanism: Governance token managing automated yield-routing smart contracts. Value accrues from management/performance fees generated by vault products, concentrated across a highly restricted 30,000 token supply.
FIL (Filecoin)
Markets: Decentralized Storage (Contract/Rental).
Mechanism: Native utility token for the Filecoin data network. Value accrues from ongoing storage space rentals and the mandatory locking requirements for hardware storage providers.
AR (Arweave)
Markets: Decentralized Storage (Permanent).
Mechanism: Native token for the Arweave data network. Value accrues from storage requests utilizing a single-payment permanent endowment structure that compensates storage miners over multi-decade horizons.
RE / REI (Reserve Protocol)
Markets: Asset-Backed Stablecoins, Overcollateralization.
Mechanism: Governance and backstop token for custom tokenized asset baskets (RTokens). Value accrues via a percentage of underlying yield generated by the baskets in exchange for providing first-loss default insurance.
PENDLE (Pendle)
Markets: Interest Rate Derivatives, Yield Trading.
Mechanism: Governance token for yield-tokenization contracts. Value accrues via vePENDLE locking, allowing users to claim swap fees, pull protocol yield fees, and direct token emission incentives.
ETHFI (Ether.fi)
Markets: Liquid Restaking Protocol Governance.
Mechanism: Governance token for the Ether.fi vault infrastructure. Value accrues via protocol fee cuts taken on restaking rewards and operational node performance.
RENZO (Renzo)
Markets: Liquid Restaking Protocol Governance.
Mechanism: Governance token for the Renzo liquid restaking portal. Value accrues from protocol commissions collected on restaking yield metrics processed through its ezETH pipeline.
KELP (Kelp DAO)
Markets: Liquid Restaking Protocol Governance.
Mechanism: Governance token for Kelp DAO's vaults. Value accrues from vault coordination and restaking yield commissions, carrying elevated active systemic risk due to structural layer dependencies.
PYTH (Pyth Network)
Markets: Decentralized Oracles (Low-Latency / First-Party).
Mechanism: Governance token for the Pyth data network. Value accrues via data publisher coordination and staking rules dictating the distribution of data feed access fees.
ONDO (Ondo Finance)
Markets: Tokenized Real-World Assets (RWA).
Mechanism: Governance token for institutional credit and debt wrappers. Value is driven by global institutional demand for tokenized yield instruments and management fees collected from on-chain treasury pools.
RED (RedStone)
Markets: Decentralized Oracles (Modular / Pull-Based).
Mechanism: Governance and utility token for modular data provisioning. Value accrues through usage fees paid by client chains requiring low-gas, pull-based oracle updates for exotic collateral assets.
ILV (Illuvium)
Markets: GameFi Ecosystems.
Mechanism: Native governance token for the Illuvium gaming ecosystem. Value accrues via a distribution model where 100% of all in-game revenues, marketplace fees, and land sales are used to purchase ILV and distribute it to stakers.
CVX (Convex Finance)
Markets: Yield Optimization, Governance Aggregation.
Mechanism: Aggregation token built on top of the Curve ecosystem. Value accrues via permanent control over a massive pool of locked veCRV tokens, generating yield optimization fees and structural voter bribes for CVX holders.
CRV (Curve Finance)
Markets: Decentralized Exchange, Stablecoin Liquidity.
Mechanism: Utility and native incentive token for Curve pools. Value accrues via veCRV locking, which guarantees a percentage of trading fee distributions, gauge voting weight, and asset emission modifiers.
ENA (Ethena)
Markets: Synthetic Dollars, Hedged Yield Strategies.
Mechanism: Governance token for the USDe issuance platform. Value is driven by scaling the supply of its delta-neutral synthetic dollar, with utility tied to directing the yield reserve funds generated by short perpetual funding rates and spot staking assets.
Open design decisions
- A defined sector taxonomy and inclusion process.
- A defined rebalance trigger, cadence, and weighting method.
- Explicit execution, liquidity, and risk boundaries.
- A benchmark and evaluation method that does not confuse paper results with executable performance.
- A public distinction between open indicators, research strategies, and any later hardened strategy.
Interface
There is no current need to revive the synthCore frontend. A stronger interface should follow a coherent model and verified writing instead of forcing the model to fit a premature display surface.