Confederate Reserve · Research
The intellectual
architecture of a
new monetary system.
Working papers, technical notes, audit reports, and policy briefs from the Confederate Reserve Research Division and independent collaborators. Peer-review quality. Publicly accessible.
6
Publications
6
Research areas
4
Audits completed
Domains
Research areas
Library
Publications
Confederate Reserve: A Jurisdictional Monetary Framework for Sub-National Stable Currencies
Confederate Reserve Research Division · January 2026 · 47pp
We introduce the Confederate Reserve Protocol — a fully on-chain monetary system enabling sub-national jurisdictions (states) to issue dollar-pegged currencies backed by transparent, auditable reserves. Drawing on classical central-banking theory (Bagehot, Thornton, Friedman) and modern mechanism design, we prove that a 130% minimum collateral ratio with real-time RTGS settlement provides systemic stability under a 50% primary collateral depeg scenario. We further characterize the parameter space under which multi-charter rate corridors are incentive-compatible at the confederation level.
Atomic Settlement Finality in Permissionless Networks: A Formal Treatment of PvP Under Byzantine Faults
Confederate Reserve Research Division · February 2026 · 34pp
We provide a formal model of Payment-versus-Payment (PvP) atomic settlement under Byzantine fault tolerance constraints in an EVM-compatible environment. We show that the Confederate Reserve RTGS module achieves settlement finality within a single block with probability 1 absent a network-level 51% attack, and that partial settlement ("half-fill") is provably impossible under the implemented locking mechanism. We also characterize the gas complexity of the settlement primitive and derive optimal batch-sizing heuristics for the Deferred Net Settlement (DNS) module.
Reserve Adequacy Under Stress: Collateral Composition, Correlation, and Systemic Risk in Multi-Asset Stablecoin Vaults
Confederate Reserve Research Division · March 2026 · 41pp
Multi-asset collateral vaults introduce correlation risk absent in single-asset designs. We analyze the Confederate Reserve collateral portfolio (USDC 60%, USDT 16%, T-bills 10%, BTC 4%, ETH 3%, Other 7%) using a copula-based stress framework calibrated to the 2022–2023 digital asset market contraction. We find that under our current composition, a simultaneous 50% USDC depeg and 30% broad crypto drawdown yields a residual reserve ratio of 114.2% — above the 110% liquidation floor. We propose a dynamic rebalancing mechanism triggered by Value-at-Risk breaches.
ERC-4626 Vault Extension for Multi-Charter Reserve Accounting: Implementation Notes
Confederate Reserve Engineering · November 2025 · 18pp
Standard ERC-4626 vaults assume a single yield-bearing asset class and a single depositor-beneficiary relationship. Confederate Reserve requires multi-charter attribution, intra-vault transfer accounting between state token pools, and reserve-ratio enforcement at both the aggregate and per-charter level. This note documents the non-standard extensions to ERC-4626 we implemented, the security assumptions they introduce, and the formal invariants maintained across all vault operations.
Rate Corridor Design for Sub-National Currencies: Lessons from the ECB, Fed, and SNB
Confederate Reserve Research Division · December 2025 · 22pp
We survey the rate corridor frameworks of three major central banks — the European Central Bank (ECB), the U.S. Federal Reserve (corridor abolished 2008, floor system since), and the Swiss National Bank (SNB negative rate experiment 2014–2022) — and derive design principles applicable to a multi-charter on-chain protocol. We recommend a symmetric corridor with a 50bp width at baseline, a floor equal to the policy rate minus 25bp (reserve remuneration), and an emergency lending window at policy rate plus 150bp. We model the impact of these parameters on inter-charter arbitrage and state token price stability.
Q1 2026 Reserve Attestation — Moore & Cabot LLP
Moore & Cabot LLP · Independent Audit · March 31, 2026 · 12pp
Independent third-party attestation of the Confederate Reserve Protocol's collateral vault as of March 31, 2026. We confirm that (1) total on-chain reserves are $847.2M USDC-equivalent, (2) total state token circulating supply is $592.0M, yielding a reserve ratio of 143.7%, (3) all reserve addresses match those published in the protocol's canonical registry, and (4) no unauthorized withdrawals or re-hypothecation events occurred during the audit period. Smart contract code reviewed is consistent with the published commit hash 0xae77…4f1c.
Intellectual lineage
Standing on centuries of monetary thought.
The Confederate Reserve Protocol is not invented from scratch. It applies foundational principles of central banking theory — reformulated for a permissionless, programmable, publicly auditable substrate.
Walter Bagehot
Lombard Street (1873)
Lend freely at a penalty rate against good collateral. In Confederate Reserve: the emergency lending window is always open, always on-chain, at policy rate +150bp, against verified collateral.
Henry Thornton
Paper Credit (1802)
Central bank money supply should respond elastically to demand, but contraction must not be abrupt. The Confederate Reserve minting mechanism expands supply 1:1 with collateral deposit, and redemption is always atomic — no abrupt gates.
Milton Friedman
A Program for Monetary Stability (1959)
Rules over discretion. Confederate Reserve embeds this in bytecode — policy parameters are changed only through time-locked governance votes. No unilateral discretion at any trust level.
Fischer Black
The Pricing of Options and Corporate Liabilities (1973)
Risk is priceable and hedgeable if its parameters are public and continuous. Confederate Reserve makes all reserve composition and ratio data continuously available on-chain, enabling open-market risk hedging.
Satoshi Nakamoto
Bitcoin: A Peer-to-Peer Electronic Cash System (2008)
Trustless settlement requires no central coordinator. Confederate Reserve's RTGS module inherits this property — settlement is a smart-contract primitive with no operator key.
Vitalik Buterin
Ethereum Whitepaper (2013)
A programmable settlement layer enables financial primitives impossible in legacy systems. Confederate Reserve uses EVM programmability to implement multi-charter reserve accounting, PvP atomic settlement, and governance in a single composable stack.
Open research
Contribute to the knowledge base.
The Confederate Reserve Research Division welcomes submissions, critiques, and independent analyses. Rigorous review. Public indexing.