Referral Attribution and Inventory Consumption

UCE ties user flow to allocator responsibility through referral codes and uses allocator inventory to settle mints and (when applicable) withdrawals in a way that is auditable and incentive-aligned.

• Attribution via referral codes. Each allocator has a deterministic referral code mapped on-chain to their address. When a user performs A → 0x with a valid referral:

  • The underlying is routed to the allocator’s per-asset pocket.

  • The user’s 0x is delivered from the allocator’s reservedZeroX inventory.

  • If reservedZeroX is insufficient, the swap reverts. The allocator’s shortfall is not socialized to the protocol. This enforces flow ownership: allocators who attract flow must maintain inventory and pocket liquidity/allowance.

• Inventory consumption on protocol mints (no referral). For A → 0x without a referral (and when the caller is not an allocator), UCE delivers 0x in this order:

  1. Unreserved 0x on the UCE contract

  2. Pro-rata draw across allocators’ inventories up to each allocator’s available capacity min(reservedZeroX, effectiveDebt), which reduces their debt (base-indexed) as inventory is consumed. The allocator set is maintained in a lightweight linked list approximately ordered by effective debt, enabling near-linear pro-rata assignment without expensive sorting.

  3. Mint any remaining shortfall.

• Referral influence on redemptions. For 0x → A with a referral code, UCE preferentially pulls underlying from the referral allocator’s pocket before falling back to global context (all pulls remain bounded by pocket balance and allowance). Redemptions never mint underlying.

Result: Referrals align incentives (flow ↔ inventory), keep settlement capacity explicit (pockets/allowances), and ensure that when the protocol taps allocator inventory on non-referred flow, it repays their debt automatically, producing fair, market-like netting without hidden subsidies.