Furnace

What the Furnace does

The Furnace is the bonus engine and only counterparty for lock trading.

Key invariant: No user-to-user lock transfers. All lock creation, growth, and settlement happens through the Furnace.

Lock with Bonus (primary use)

Entry token default: If you hold CLAIM, it’s preselected. Otherwise ETH is preselected (Furnace swaps for you). Collect & Lock always starts from ETH.

Buy now vs Buy intent

There are two ways to enter the Furnace (acquire veCLAIM):

• Buy now (Market buy / Enter now): enter immediately using the live Furnace quote (this page).

  • Mental model: “I’m willing to put 1000 CLAIM or 1 ETH into the Furnace. Tell me how much ve I’m getting in exchange.”
  • You set:
    • Input amount (amountIn) and input token (tokenIn)
    • slippage (derives Minimum output = minVeOut)
  • You review:
    • Estimated output now (live quote): estimatedVeOut
    • swap deadline (TTL) if tokenIn != CLAIM

• Buy intent (Limit buy): create a patient entry intent from Market.

  • You escrow a CLAIM Input amount (budgetClaim) and set an Expiry (expiresAt).
  • You also set an execution condition:
    • Minimum output (minVeOut) (or a target bonus that maps to minVeOut)
  • It executes into the Furnace only when the live quote yields veOut >= minVeOut (before expiry).

Royalties (Barons)

Royalties are paid in ETH to veCLAIM holders.

LP Vault routing

Harvest & Lock: Routes LP rewards through the Furnace into veCLAIM.

Sell now (Market sell): instant liquidity

Sell your veCLAIM NFT back to the Furnace for liquid CLAIM.

• Fast (Furnace is always available)
• Usually at a discount vs principal
• Lock is burned on sale

Use when you need instant liquidity or guaranteed execution.

Lock destination

Default UX (v1.0.0+): the app uses smart defaults.

• You choose a duration intent (7 days – 1 year, or AutoMax).
• The modal shows a read-only destination summary:
  • “Destination: Lock #{tokenId} (auto)” or “Destination: New lock (auto)”
• Advanced settings reveal the lock picker if you want to override.

Rules:

• If there are no eligible locks, the app creates a new lock (requires 1,000 CLAIM minimum).
• Existing locks are extension-only (never shorten).
  • If the chosen duration is longer than the lock’s remaining time, the tx extends it (UI warns).
  • <7 days remaining snaps to at least 7 days.
  • AutoMax destinations force 1 year until AutoMax is disabled.

Understanding the bonus

Bonus depends on:

• Duration: Longer = better bonus (1 year max)
• Entry size: Smaller entries usually get better quotes
• Recent activity: Heavy locking cools bonus; recovers when quiet

Note: LP staker funding is streamed over time (smooth flow, not instant spikes).

Sellback pricing

Selling back uses a dynamic spread (haircut):

• High bonus environment → higher spread
• Low bonus environment → lower spread
• More remaining time → larger spread (AutoMax = max time)
• Larger sellbacks may quote worse

Sellback requirements

• You own the lock NFT
• Lock not listed on Market (delist first, or use instant sellback which auto-delists)
• Approve Furnace to transfer NFT

Sellback steps

1. Open Furnace → Sell now
2. Select the lock (tokenId)
3. Review Estimated payout now: CLAIM out, spread, LP vs reserve routing
4. Set Minimum payout (minClaimOut) derived from your slippage tolerance
5. The app sets a short deadline (default 60s) to prevent stale execution
6. Confirm

Slippage protection

Slippage guards:

• Sell now: Minimum payout (minClaimOut) + short deadline (anti-stale)
• Swaps: minimum output (minClaimOut) + deadline
• Furnace entry: minimum ve out (minVeOut)

Behavior:

• If final result is below minimum → transaction reverts
• You keep your asset/NFT (still pay gas)

Quote moved: Refresh, retry, or split large actions.

After the action

• Lock entry: New NFT (if new lock) or updated principal/time on existing
• Sellback: Lock burned, CLAIM in wallet