Protected Growth Token
Full upside.
Floor on the
downside.
A fixed-term onchain instrument that gives token holders downside protection while building protocol-owned liquidity for projects.
Learn morePGT vs spot holder returns by token price at maturity.
01
Full upside exposure
PGTs allow holders to capture the full upside of the underlying token.
02
Up to 75% downside protection
Projects set a protection level at issuance. Holders remain downside protected up to the floor.
03
Protocol-owned liquidity
PGTs allow projects to build protocol-owned liquidity while protecting their community.
How it works
From deposit to redemption.
Example: $1,000 deposit
What is a PGT?
A PGT lets you gain exposure to a token's upside with a hard floor protecting your downside. Think of it as a defined-risk bet on a token you believe in.
Buying a PGT.
Any project can issue PGTs — they set the protection floor, the term, and put up the collateral. You deposit USDC.
The project's offer
this becomes your reference price
You
The collateral backing the PGT is a structured product made up of an LP position that funds the floor, and a token reserve that funds the upside. Read the docs if you're curious for a full breakdown.
You're issued a PGT.
You're issued a Protected Growth Token. The PGT gives you exposure to the full token upside while keeping you downside protected.
Your guarantee
At maturity, you redeem.
Drag the slider to see what you walk away with and how it compares to just holding the token outright.
Token price at maturity
was $1.00 at issue
Your PGT
$1,000
+$0
Spot holder
$1,000
+$0
FAQ
Common questions.
A Protected Growth Token is an on-chain instrument that gives you downside protection and full upside exposure to a project's token over a fixed term. If the token drops below a set floor at maturity, you get your principal back. If it goes up, you capture the full upside.
Your deposit and half the project's tokens form a full-range DEX liquidity position. The LP value acts as your protection buffer. As long as the token doesn't fall below the floor (up to 75%), the LP is large enough to return your full principal at maturity.
You capture the full upside. If the token rises 50%, your $1,000 deposit becomes $1,500 at maturity.
All collateral is locked in immutable smart contracts from day one. The project cannot withdraw or modify terms mid-term. Settlement uses a 72-hour VWAP — no counterparty risk, no custody.
Yes. PGTs are standard ERC-20 tokens and freely transferable. Trade or sell on secondary markets whenever you want liquidity. The new holder redeems at maturity in your place.
PGTs reduce but don't eliminate risk.
Smart contract risk. A bug in the contracts could result in loss of funds.
Protocol risk. If Exchequer is exploited, redemptions could be affected. Contracts are designed to be non-custodial and function independently of the team.
Term risk. Protection applies for a defined period. Users can exit early via early redemption for a fee, but doing so means giving up the remaining protection.
Price risk. If the token price falls below the protection floor, the collateral may not fully cover the protected value. Protection reduces downside exposure but does not guarantee full recovery in extreme price scenarios.
Oracle risk. Exchequer uses a TWAP-based oracle for each DEX that the collateral sits on. Redemption values use TWAP windows, not spot prices vulnerable to manipulation. Circuit breakers detect suspected price manipulation around redemption and trigger safety checks before large redemptions process.
More detail in the full documentation.
Go deeper
Explore our docs for a full breakdown.