Priority Upgrade

What is it?

Every credit-token (CT) is minted with Middle priority by default. A holder can upgrade any number of their tokens to High priority at any time by paying a fee. In a default scenario, High tokens are repaid first (principal + interest), so they are safer.

Capacity rule (Advanced Users)

To keep the pool balanced, no more than ⅓ of all CT-tokens may sit in the High bucket. We measure the current fill level u_t:

Where:

• H_t: number of High-priority CTs in the pool.

• T_t​ – total CT supply (High + Middle + Low).

If u_t = 1 the High bucket is full; no further upgrades are allowed until more Middle tokens appear (e.g., after a new stage).

Example Before a stage: 1000 High, 3 500 Middle, 500 Low u_t = 1000 / [(1/3) x 5000] = 0.60 After minting 5000 new Middle tokens: u_t = 1000 / [(1/3) x 10000] = 0.30: room to upgrade again.

Upgrade Price (Advanced Users)

The cost to lift one CT from Middle → High grows linearly with the bucket fill:

Where:

• C_nom: CT’s face value (e.g., “10” in $CT_ProjectXXX_10…).

• a: minimum premium (fraction of face value).

• b: slope: how much the premium rises as High fills up.

• P_average($L): average price of mint of one $8LENDS in bonding-curve P_mint (see P_average).

Holders may pay in USDС/EUR or directly in $8LENDS at the on-chain conversion above.

Other Rules

• Upgrades are only possible from Middle → High (never from Low).

• Tokens chosen for upgrade must mature one day before the loan’s due date.

• No upgrades once the Project is declared in default.

• A holder can rebalance: upgrade some CTs and downgrade others in the same wallet.

• Fees collected for upgrades are either

  1. used to top-up lower priorities, or

  2. burned outright (see Priority Downgrade).

High-priority CTs enjoy first-loss protection: in default they are paid out ahead of Middle and Low stages.