Parts to deal with

Credit line & inventory

• Minting: allocatorCreditMint(allocator, amount) mints 0xAssets into UCE, credits the allocator’s reservedZeroX, and increases their effective debt (tracked as baseDebt × debtIndex).

• Debt accounting:

  • baseDebt → allocator’s nominal debt;

  • debtIndex → global scaler used for proportional adjustments (e.g., tail-loss socialization);

  • allocatorDebt(a) and totalAllocatorDebt() expose effective values.

• Repayment: allocatorRepay(asset, assets) pulls underlying from the allocator, skims borrow fee to treasury, converts the rest to 0x-equivalent, and reduces debt (capped to what’s outstanding).

Pockets & routing

• Global pocket per asset + optional allocator-specific pocket per asset.

• Users can include a referral code; UCE maps it to the allocator and:

  • Sends the non-reserved portion of inbound stables to that allocator’s pocket.

  • On 0xAsset outflows, consumes the allocator’s reservedZeroX first if they’re the referrer.

• Reserve buffer: UCE retains reserveBps on-hand per asset (e.g., 25%) for low-latency settlements; the rest sits in pockets and can be deployed to Aave.

Redemption rate & tail-loss sink (why inventory matters)

• If users redeem 0xAssets for stables and the system needs to mint to meet demand, a time-varying redemption surcharge rises to price scarcity.

• If net shortfall persists, debt scaling lowers debtIndex, writing down indebted allocators pro rata. Keeping inventory pre-provisioned reduces the chance your flow hits scarcity conditions.