FAQ

#The protocol

#What is Furnace?

Furnace is settlement infrastructure on Elysium. Its engine is a set of contracts doing live AMM work across Elysium pools. You can stake HYPE to receive xFURNACE and a weekly share of Furnace protocol revenue, paid in HYPE.

#What does "activity is the asset" mean?

It's our line for how Furnace works. The engine's continuous on-chain work is what Furnace owns, what produces its revenue, and what the dashboard measures. More.

#What does the engine actually do?

Three things. Quote maintenance re-centers Furnace's liquidity positions as prices move. Liquidity rebalancing moves Furnace's inventory between pools and price ranges. Opportunistic arbitrage closes price gaps between Elysium pools. Each operation is a transaction that emits an Operation event naming its kind and pool.

#Is the activity real, or transactions for show?

Every operation has a market trigger: a stale quote, misplaced inventory, or a price gap wider than gas plus fees. Gas is a real cost, so an operation without a market reason only loses money. You can inspect every operation on the explorer, and the dashboard lists them as they land.

#What does "built to be the chain's biggest builder" mean?

It's our positioning. Furnace's engine is designed to run continuously across Elysium pools, and every transaction it sends comes from Furnace contracts and is attributed publicly. The dashboard counts that activity: transactions, gas paid, pools touched.

#Is Furnace part of Kinetiq?

No. Furnace is a separate project that builds on Elysium. Kinetiq builds and operates Elysium. Furnace speaks only for itself and claims no arrangement with Kinetiq.

#Distributions

#Where do the weekly distributions come from?

From the Distributor contract, which receives Furnace's protocol revenue. After each Monday 00:00 UTC boundary, distribute() sends 80% of engine and external revenue, plus all treasury contributions, to FurnaceStaking. It then streams to xFURNACE holders over 7 days.

#Are distributions sequencer-fee rebates?

No. Distributions are a share of Furnace protocol revenue.

#Does Furnace receive a share of Elysium's sequencer fees?

Kinetiq has announced that about 25% of Elysium sequencer fees go to builders whose contracts consume blockspace. It hasn't published how that share is calculated or paid. Furnace doesn't estimate or advertise any such income. If a builder payment ever reaches a Furnace contract, it enters the Distributor as an external inflow, shows on the dashboard as its own line, and is split 80/20 like any other revenue.

#How much will I earn?

Furnace doesn't publish projections, and the dashboard has no APR or APY. It shows what has actually been distributed each epoch. Past distributions don't predict future ones.

#Can a week's distribution be zero?

Yes. If no revenue reaches the Distributor during an epoch, that epoch's allocation is zero.

#Can distributions be larger than revenue?

Only when Furnace adds treasury funds of its own. Those inflows are labeled treasury contribution, go 100% to stakers, and are never counted as revenue.

#Who decides how much goes to stakers?

The Distributor contract does. The split is 80% to stakers and 20% to the Furnace treasury, set at deployment, with no function to change it. Each allocation follows directly from the inflows recorded on-chain.

#What is the 20% treasury share for?

Keeper gas, infrastructure and operations. Gas is the engine's main cost.

#Can I stake right before a distribution and leave right after?

You can, but you'll only earn for the seconds you were staked. Each allocation streams out over 7 days instead of landing all at once.

#Staking

#What happens to my HYPE when I stake?

It's held in FurnaceStaking. It isn't sent to the engine, lent out or used for anything else, and no admin function can move it. The dashboard checks live that the contract's HYPE balance is at least the xFURNACE supply.

#Can I withdraw at any time?

Yes. Withdrawing burns xFURNACE and returns the same amount of HYPE in one transaction, with no cooldown and no fee. Withdrawing and claiming can't be paused. HYPE you've accrued but not claimed stays claimable after you withdraw.

#Is there a minimum stake?

No minimum is enforced, but leave a little HYPE in your wallet for gas.

#What is xFURNACE? Can I trade it?

xFURNACE is your receipt for staked HYPE, issued 1:1. In v1 it is non-transferable, so it can't be sent, sold or used in other protocols.

#Do I need the FURNACE token to stake?

No. You stake HYPE and are paid in HYPE. Holding FURNACE doesn't change your share.

#What is the FURNACE token?

FURNACE is the protocol's ERC-20, with a fixed supply of 1,000,000,000 minted once at deployment. It has no mint function, no transfer tax, no pause and no upgrade path. Allocation and vesting are in tokenomics.

#Trust and status

#Who controls the contracts?

A multisig owner with limited powers. It can pause new stakes and manage the engine's keeper and pool allowlists. It can't move or freeze staked HYPE, pause withdrawing or claiming, change the 80/20 split, or upgrade the contracts. Full table: admin powers and limits.

#Are the contracts audited?

Not yet. Treat the contracts as unaudited until an audit report is linked on this page and on the dashboard.

#Is Furnace live?

Check the status badge in the site header. Pre-launch · Preview data means Furnace contracts are not deployed and the dashboard shows labeled preview data. Testnet · Live or Mainnet · Live means every number is read from deployed Furnace contracts, whose addresses are on the dashboard's Contracts panel.

#Why does the dashboard show gas paid?

Gas is the engine's main cost. It's shown next to revenue so you can see the realized net.

#What are the risks?

Smart-contract bugs, engine losses that reduce or eliminate distributions, Elysium being a new chain with a single sequencer, and HYPE price changes. Read Risks before you stake, and only stake what you can afford to lose.