Money flows
Every transfer in one place, and an honest account of who earns and who pays.
Reading the diagrams
Two assets, five venues
Only two things move: USDT and the token itself. Everything else — prices, caps, health factors — is information derived from the spot pool, which is why pool depth governs every other market.
USDT Token Information only
Transfer by transfer
What moves, and where
Buying
Trader
USDT in
Curve or pool
Curve or pool
tokens out
Trader
Providing liquidity
Provider
USDT
Spot pool
Provider
matching tokens
Spot pool
Spot pool
LP shares
Provider
Borrowing
Lender
supply
Lending pool
Borrower
collateral
Lending pool
Lending pool
loan
Borrower
Perpetuals
Trader
margin
Perp vault
Paying side
funding
Receiving side
Liquidation
Liquidator
repays debt
Lending pool
Lending pool
collateral + penalty
Liquidator
Follow the money
Who earns, who pays
| Participant | Earns | Pays | Risk |
|---|---|---|---|
| Liquidity provider | 0.20% of swap volume | Holds both assets | Impermanent loss |
| Lender | Borrow interest, less 15% | Capital is illiquid while lent | Bad debt if liquidation fails |
| Borrower | Cash without selling | Interest | Liquidation at 40%, 10% penalty |
| Perp long | Leveraged upside | Fee + funding when rich | Liquidation at 4% margin |
| Perp short | Funding from longs | Fee | Only the matched book earns |
| Vault depositor | Carry + lending interest | Queued exits above 2% | Funding can go flat |
| Creator | 0.05% of swaps forever | 0.02 SOL to launch | Earns only if it trades |
Market cap is not money
A token's market cap is its supply multiplied by the last traded price, and that price is set by whoever bought most recently. The amount that can actually be withdrawn is limited by the USDT sitting in the pool, which is almost always far smaller. Treat pool depth, not market cap, as the measure of a token's substance.