Token System

Buttonwood's protocol uses several interconnected tokens, each serving a specific role in the lending and borrowing lifecycle.

HYPE (Collateral)

HYPE is the native token of the Hyperliquid ecosystem and currently the only supported collateral type. When a mortgage is created, HYPE is purchased (BNPL) or deposited (Compounding) and locked in the SubConsol escrow contract.

• Used as collateral for all mortgage positions
• Priced via Pyth oracle price feeds
• Locked in SubConsol until the mortgage is redeemed, converted, or foreclosed

USDX (Protocol Stablecoin)

USDX is the protocol's internal unit of account — a multi-token vault that wraps multiple USD stablecoins into a single fungible token.

Supported Underlying Tokens

Token	Description
USDC	Circle's USD Coin
USDT0	Tether on Hyperliquid
USDH	Hyperliquid's native stablecoin

How It Works

USDX extends the MultiTokenVault contract. Users deposit any supported stablecoin and receive USDX at a 1:1 ratio. The Router handles wrapping/unwrapping automatically so users can interact with the protocol using whichever stablecoin they prefer.

Key properties:

• 1:1 backing by underlying stablecoins
• Wrap and unwrap at any time
• All protocol-internal accounting is denominated in USDX

Consol (Yield Token)

Consol is a rebasing ERC20 token that represents lender yield. It extends MultiTokenVault and RebasingERC20.

How Yield Accrues

Consol is backed by:

1. USDX deposited by lenders and earned from borrower payments
2. Forfeited assets from foreclosed positions (via ForfeitedAssetsPool)

As the backing pool grows from borrower interest payments and forfeited assets, the rebasing mechanism automatically increases each holder's balance proportionally. Lenders earn yield simply by holding Consol tokens.

Earning Consol

Lenders earn Consol through:

• Origination Pool deposits — stablecoins are converted to Consol upon deposit
• Rollover Vault staking — the vault accumulates Consol from rolled-over pool positions
• Fulfillment Vault staking — earns Consol from order fulfillment fees

SubConsol (Escrow)

SubConsol is the escrow contract that holds collateral for active mortgages. It is not a token users interact with directly — it's an internal protocol component.

Responsibilities

• Holds locked HYPE collateral for each Mortgage NFT
• Releases collateral upon redemption (full payoff) or conversion
• Transfers collateral to the ForfeitedAssetsPool upon foreclosure
• Tracks per-mortgage collateral balances

Token Flow Diagram

User deposits stablecoin
        │
        ▼
   ┌─────────┐
   │  USDT0  │
   │  USDC   │──── wrap ────► USDX ──── mint ────► Consol
   │  USDH   │                  │                     │
   └─────────┘                  │                     │
                                ▼                     ▼
                        Borrower debt          Lender yield
                        denominated            (rebasing)
                        in USDX
                                │
                                ▼
                    HYPE purchased on Hyperliquid
                                │
                                ▼
                    Locked in SubConsol (escrow)

Share Tokens

In addition to the core tokens, the protocol issues share tokens for vault participation:

Token	Vault	What it represents
Pool Tokens	Origination Pool	Share of a specific lending pool epoch
RLV	Rollover Vault	Share of the automated rollover strategy
FLV	Fulfillment Vault	Share of the order fulfillment liquidity

These are standard ERC20 tokens that can be transferred. Redeeming them burns the share tokens and returns the proportional underlying assets.