Activity is the asset

Furnace runs a settlement engine on Elysium: contracts that continuously do AMM work. They maintain quotes, rebalance liquidity and close price gaps between pools. Every operation is an on-chain transaction from Furnace contracts. The revenue from that work is shared with HYPE stakers through xFURNACE.

This page explains what the engine does, how revenue moves, and which statements you can check on-chain.

#The engine

The engine has two parts:

• FurnaceEngine is the contract that holds Furnace's engine inventory and executes operations against Elysium pools.
• Keepers are off-chain processes run by Furnace. A keeper watches the market, decides when an operation is needed and submits it to FurnaceEngine. Only allowlisted keeper addresses can call the engine.

The engine performs three kinds of operation:

Every operation emits Operation(id, kind, pool, tokenIn, amountIn, tokenOut, amountOut). The keeper's exact thresholds and schedule are internal, but every operation it executes is public.

The engine rule: every operation has a market trigger, either a stale quote, misplaced inventory or a price gap. The engine never sends transactions just to add activity. Gas is a real cost, and an operation without a market reason only loses money.

#Where revenue comes from

The Distributor contract receives all Furnace revenue and labels every inflow by its sender. The contract sets the label from msg.sender, not from anything the caller passes in:

Treasury contributions are always shown separately and are never counted as revenue.

The engine's main cost is gas, which keepers pay in HYPE. The dashboard shows gas paid next to revenue, so you can see the realized net.

#How revenue reaches stakers

 Keeper ──tx──▶ FurnaceEngine ──realized HYPE──▶ Distributor ──80%──▶ FurnaceStaking ──7-day stream──▶ xFURNACE holders
                                                      │
                                                      └──20%──▶ Furnace treasury (keeper gas, operations)

 Your HYPE ◀──1:1──▶ FurnaceStaking      (principal path: never touches the engine)

1. Engine revenue is swept to the Distributor. Other inflows land there too, each one labeled.
2. Epochs run from Monday 00:00 UTC to the next Monday 00:00 UTC. Once an epoch ends, anyone can call distribute() on the Distributor.
3. distribute() splits everything that arrived since the previous distribution. Furnace calls it right after the epoch boundary, and anyone else can too:
   • to stakers: 80% of engine and external inflows, plus 100% of treasury contributions
   • to the Furnace treasury: 20% of engine and external inflows, which pays for keeper gas and operations
4. The staker amount goes to FurnaceStaking, which streams it to xFURNACE holders over the next 7 days, pro rata, every second.
5. You can claim what you have accrued at any time.

The 80/20 split is set once, in the Distributor constructor, and nothing can change it later: no owner function, no upgrade. Each allocation follows directly from the inflows recorded on-chain. If no revenue arrived, the allocation is zero.

#Your principal

Staked HYPE is held in FurnaceStaking. It moves only between you and that contract, 1:1. It is never sent to the engine, lent out or used as inventory, and no admin function can move it.

The contract keeps this invariant: HYPE balance of FurnaceStaking ≥ xFURNACE total supply. The balance also holds the part of the current allocation that hasn't streamed out yet. The dashboard checks this on every read.

#Elysium context

These are public design facts about Elysium. They describe the chain. They are not Furnace income.

• Elysium is an Arbitrum Orbit chain built by Kinetiq. It uses HYPE for gas and settles to HyperEVM.
• Kinetiq has announced that Elysium sequencer fees are split roughly 50% to KNTQ buybacks, 25% to builders whose contracts consume blockspace, and 25% to the Kinetiq treasury (coverage).
• Kinetiq has not published how the builder share is calculated or paid.

How this relates to Furnace:

• Furnace distributions are a share of Furnace protocol revenue. They are not sequencer-fee payments.
• Furnace claims no arrangement with Kinetiq, and Furnace doesn't estimate, project or advertise builder income.
• If a builder payment ever reaches a Furnace contract, it enters the Distributor as an external inflow. The dashboard shows it on its own line, traced to the paying transaction, and it reaches stakers through the same 80/20 split as all other revenue.

Furnace is built to be the chain's biggest builder.

#What you can check

#What Furnace doesn't claim

• Distributions are not sequencer-fee rebates and not a payment from Kinetiq.
• Furnace states no fixed, minimum or projected yield.
• Furnace claims no partnership, endorsement or arrangement with Kinetiq.