How Glue V2 works

What is Glue

Glue is a protocol that attaches a real, on-chain economy to any token or NFT collection. Glue an asset and it gains three things at once: a collateral vault whose contents can never be withdrawn (only redeemed by burning supply), a native staking program with revenue share on Uniswap V2, V3 and V4, and a universal wrapper that turns even the most exotic asset into a clean, standard ERC20 that every DeFi app can use.

The contracts are non-upgradable and permissionless. There are no admin keys over balances, no pause switch, no whitelist. Once an asset is glued, its economy runs itself forever.

How it works

The whole lifecycle in five steps:

Because value can only ever enter the vault or leave through burns, the redemption floor of a glued asset can only step up.

What "permissionless" means here concretely

• Anyone can glue an asset — including an asset they did not create. It needs no cooperation from the token's team.
• Anyone can fund it — backing and reward deposits are open calls.
• Anyone can redeem — holding the asset is the only credential.
• Nobody can stop any of it — there is no pause, no admin over balances and no upgrade path.

Glossary

The vault

Every glued asset has its own collateral vault. Anything sent into it — by the team, by a protocol's fee switch, by the community — becomes permanent backing. The vault has no withdraw function: not time-locked, not multisig-gated — it does not exist in the bytecode.

The vault holds collateral as clean wrapper shares internally, so rebasing tokens, fee-on-transfer tokens and odd decimals never corrupt the accounting. A vault can hold any number of different collaterals at once — ETH plus a dozen tokens is normal — and each is redeemed in its own right.

Sending value in is the whole interface

There is no "deposit approval", no listing, no registry to join. Any wallet or contract can add collateral to any glued asset, and it counts immediately. That is why a protocol can back its token by simply pointing its existing fee switch at the vault.

Backing per unit only goes up

Backing per token changes for exactly two reasons: value coming in (backing rises), or supply burning against it (backing per remaining token rises). Nothing in the protocol can move it down, which is why an unglue is always priced by a floor that never retreated.

Unglue — burn to redeem

Ungluing is the exit that is always open. Burn any amount of the sticky asset and receive your exact pro-rata share of the collaterals you name, atomically, in the same transaction. No queue, no epoch, no counterparty, no governance.

• Payouts are priced by pure arithmetic on real balances — burn 5% of supply, receive 5% of each collateral.
• You choose the form: name the raw asset to receive it unwrapped, or name its wrapper to receive shares.
• Every glue is a standalone redemption machine — it works with no router, no front-end and no team in between.

Because every burn removes supply against the same collateral, each unglue nudges the redemption floor up for everyone who stays.

Why this creates a price floor

If the market price of a glued asset falls below its backing per token, anyone can buy it cheap, unglue it, and take out more value than they paid. That trade is risk-free and permissionless, so it gets taken — and taking it burns supply, which pushes backing per token higher still. The floor is enforced by arithmetic and self-interest, not by a market maker.

Ungluing an NFT collection

Same mechanic, counted in NFTs: burn or hand in NFTs and receive that fraction of the collection's vault. Backing is measured against circulating NFTs, so burned and parked NFTs are correctly excluded rather than diluting the holders who remain.

Flash loans

Idle backing works overtime. Anyone can flash-borrow collateral from one vault — or from many vaults in a single atomic call — and repayment is verified to the wei before the transaction can settle.

A borrower repays slightly more than they took, and that difference becomes permanent backing — so every flash loan nudges the floor a little higher. Arbitrageurs keep markets honest; holders keep the upside. (Exact rate in Fees.)

Redemptions are fenced off while a loan is in flight, so nobody can borrow the collateral and redeem against the hole it leaves. And because a single call can draw on many vaults, the combined backing of every glued asset acts as one deep liquidity source — which grows with every asset that gets glued.

Revenue share

Every glued asset has a native staking pool with two cohorts and zero ceremony:

• Pure stakers deposit the asset and nothing else. Their principal auto-compounds from the native reward stream.
• LP stakers pair the asset with ETH, and Glue mints the LP directly on Uniswap V2, V3 or V4 — no external farm, no receipt token, no middleman contract holding the LP.

Both cohorts draw from the same reward streams, weighted: a pure stake counts at 1× its size, an LP stake at 1.5×–5× (see the multiplier). Rewards accrue per second and drip across 7-day seasons.

One pool per version

Staking is organised into version slots, and each slot is a fully separate staking pool with its own LP venue:

A staker picks the version they want to join; a depositor picks the version they want to fund (see choosing what you reward). Version slots are append-only and immutable: once registered, a slot's staking logic and LP engine can never be changed or removed, so a new version can be added without ever touching anyone's existing position.

Staking is add-only

You can top up a position as many times as you like, and each top-up pre-claims what's pending so nothing is lost. Exits are full exits: you close the position, take your principal and LP back, and the position is burned.

LP staking & the multiplier

LP weight is boosted by a live curve that responds to how crowded the LP side is: from 1.5× when liquidity is abundant up to 5× when it is scarce. The fewer LPs there are, the more each one earns — so liquidity balances itself without incentives committees.

Because the multiplier is live, it reprices continuously: your boost is a function of the pool's current LP/pure balance, not of when you joined. There is no lock and no vesting to earn it.

Your LP is real LP

Glue mints the position on the actual Uniswap pool, so your liquidity is doing real work and earning real trading fees on both sides of the pair. You keep the majority of them directly; a slice is recycled back into the asset's own economy — see the LP trading-fee split for the exact routing.

The token side of your harvested fees can also be auto-compounded straight into your pure leg, so an LP position quietly grows a staked principal alongside its liquidity.

Auto-compounding

When the reward token is the native asset itself, Glue does not hand it to you as a claimable balance — it compounds it directly into your principal. Your stake grows, and the larger stake earns a larger share of everything that comes next.

It compounds whether you show up or not

This is the part that matters: compounding is virtual. Instead of moving tokens on every claim, the pool tracks a single index that ratchets up as native rewards emit, and every pure share is worth more principal as it rises. Which means:

• Claim frequency is irrelevant. Claiming hourly and claiming once a year produce the same principal. There is no advantage to being fast, and no penalty for being idle.
• You never pay gas to compound. The growth happens in the math, not in a transaction. A claim only materialises what the index already granted you.
• No bots to beat. Because there is no compounding transaction to front-run, there is nothing for a bot to extract.

What compounds, and what pays out

NFT collections are the one exception: an NFT collection cannot be used as its own reward token (there is no fractional NFT to compound), so NFT stakers earn ETH and ERC20 reward streams instead. Everything else works identically.

Tradable positions

Your entire stake is one on-chain object: the principal, the LP leg, the boost and every unclaimed reward live inside a single transferable position with on-chain art.

• Add to it any time — one position per strategy, not per deposit.
• Transfer it and everything inside moves with it: sell it, gift it, move it to cold storage.
• Exit without unwinding — a staked position is not a dead end; the position itself is the liquid object.

Claiming is one call: every reward token the pool has ever received, collected at once. You choose whether sticky-denominated payouts arrive as the raw token or as wrapper shares.

What a buyer actually gets

Because the position is the container, buying one transfers the whole economic object: the staked principal at its current compounded size, the LP leg and its boost, and every unclaimed reward that has accrued. The position keeps earning without interruption through the transfer — there is nothing to migrate or re-stake.

One wallet can hold as many positions as it wants, each with its own strategy, version and reward preferences.

Multi-token rewards

Reward pools are plural by design. Anyone can deposit ETH or any ERC20 — revenue, incentives, partner tokens, a treasury's idle stables — and it becomes a live reward stream for stakers of that asset. There is no limit on how many streams a pool carries, and no listing step: the first deposit of a new token creates its stream.

Your position collects all of them in one claim. You can also nominate which streams you care about so a claim always includes them.

Exotic reward tokens are handled for you

A reward token that rebases, taxes transfers or uses 6 decimals would normally corrupt a reward accumulator. Glue wraps every ERC20 reward into clean 18-decimal units on arrival, so the pool math only ever sees well-behaved numbers. When you claim, you choose the form you receive: the raw token, or wrapper shares.

ETH is never wrapped — it stays native all the way through.

Seasons & the drip

Rewards do not land as a lump sum. Each deposit enters a reservoir, and every season the pool emits a quarter of what's sitting there as that season's rate, leaving the remaining three quarters for the seasons after it.

This shape has three useful consequences:

• No cliff. A single deposit keeps paying for many seasons with a decaying tail, instead of dumping in one week and stopping.
• Nothing expires. Unemitted rewards stay in the reservoir. If a pool goes quiet, the value waits there for whoever stakes next.
• Deposits stack smoothly. A new deposit only affects the current and future slices; it can never retroactively change what already accrued.

The universal wrapper

Every glued asset has a canonical wrapper: a fully standard, always-18-decimal ERC20 share with fixed behavior. The wrapper absorbs everything that usually breaks DeFi integrations:

• Rebasing supplies — captured in the wrapper's floating exchange rate; share balances never move.
• Fee-on-transfer taxes — absorbed at the boundary; a share is always worth what the math says.
• Odd decimals — everything is normalized to 18.
• NFTs — each NFT becomes exactly 1e18 shares, and whole NFTs come back out on unwrap.

wrap() and unwrap() are public and permissionless — one approval, one call, no registry, no allow-list. Any protocol that integrates Glue shares supports every token ever deployed, including the broken ones, for free.

Fully backed, always redeemable

A wrapper is not a bridge or an IOU — it is a vault whose shares are redeemable for their underlying at all times, at a rate derived from what the vault actually holds. There is no minting authority, no oracle and no peg to defend.

Why an integrator should care

• One integration, every asset. Support Glue shares and you support rebasing tokens, taxed tokens, 6-decimal tokens and NFT collections at once.
• No per-asset special cases. Every share behaves identically, so your accounting code has exactly one path.
• No permission, no partnership. Nothing needs to be enabled for you, and nothing can be turned off later.

NFTs in DeFi

Wrap any glued NFT collection and each NFT becomes fungible shares. From there your NFTs work like any token:

• Add them to liquidity on Uniswap V2, V3 or V4.
• Stake them and earn the collection's revenue share in the same multi-reward positions.
• Use them anywhere — lending, vaults, any app that speaks ERC20.

Unwrap at any time to get whole NFTs back. The collection's backing, staking and rewards all run through the same engine as any token.

Staking & LPing NFTs

This is worth spelling out, because it is not something NFTs have been able to do: a glued NFT collection can pay its holders for staking and for providing liquidity, using exactly the same engine as an ERC20.

Stake your NFTs

Deposit NFTs from a glued collection and they become a pure staking position. That position earns every reward stream the collection's pool receives — royalties routed in by the creator, protocol revenue, ETH, partner tokens, anything anyone deposits. Your NFTs are held as their wrapper shares while staked, and you get whole NFTs back when you exit.

LP your NFTs

Pair them with ETH and Glue mints a real Uniswap position (V2, V3 or V4) on the collection's wrapper — which means an NFT collection gets a genuine, tradeable, fungible market. As an LP staker you earn three things at once:

Practically, this means an NFT project can run a full revenue-share program — stake, LP, earn, redeem against backing — without writing a line of code or asking any marketplace for permission.

RWAs & rebasing tokens

Most RWAs — tokenized T-bills, yield-bearing stables, money-market tokens — pay yield by rebasing: balances change silently. That locks them out of most of DeFi, because lending markets, vaults and AMMs assume balances stay put.

The Glue wrapper absorbs the rebase into its floating exchange rate and emits a fixed-balance share whose value grows instead of its count. Every DeFi app can list RWAs today — no accounting rewrite, no special-case code, no tech upgrade. Wrap once, integrate everywhere.

The yield is not lost — it is captured

When the underlying rebases upward, the vault's holdings grow while the share count stays fixed, so every share becomes redeemable for more. Holders receive the full yield through the rate rather than through a changing balance, and nobody is diluted by the conversion.

And they get the rest of the stack for free

Once wrapped, an RWA is just a well-behaved token in the Glue ecosystem: it can be added to liquidity, staked for revenue share, used as collateral backing another asset, or paid out as a reward stream — all without the issuer changing anything.

Routing revenue

Deposits are the engine of a glued economy. Any address — a team, a fee switch, a DAO, a random supporter — can deposit any asset toward a glued asset and split it between backing and staker rewards with one percentage.

• 100% backing — hardens the redemption floor. The effect is permanent and benefits every holder, staked or not.
• 100% rewards — pays stakers over the coming seasons.
• Anything in between — one number, both effects, one transaction.

A batch form takes many assets at once, each with its own split — so a treasury can push ETH, stables and its own token in a single call.

It is fully permissionless: communities can fund assets they hold, with no approval from anyone.

Choosing what you reward

A deposit is not a blind donation into one big pot. You decide, at deposit time, exactly who gets rewarded, in what, and how much of it becomes permanent backing. Four independent choices:

What this lets you express

Hooks

Defaults need zero code. But a token that wants opinions can implement simple on-chain hooks to:

• React to staking events — gate, veto or observe stakes and exits.
• Steer LP-fee routing — decide where its slice of LP fees flows.

Everything a hook decides is enforced by the contracts, visible on-chain. Hooks are read from your token, so the logic stays yours — Glue never takes custody of the decision.

Custom LP config

By default a glued asset's LP staking uses sensible parameters. A token can instead pin its staking LP to a custom Uniswap fee tier and range, declared on-chain by the token itself. Every staker's LP is then minted with exactly that configuration.

That matters because fee tier and range are real economic choices: a stable-ish asset may want a tight range and a low tier, a volatile one a wide range and a higher tier. Setting it at the asset level means every LP staker gets a coherent, single pool instead of fragmenting liquidity across dozens of hand-picked ranges.

Fees

Every number the protocol charges lives on this page and nowhere else. One rule governs all of them: never on the native asset side. Your principal, your staked balance and your auto-compounding native rewards are never taxed.

What is never charged

• Nothing to glue, stake, add, or LP. Entering costs nothing but gas.
• Nothing on your principal. Ever, on any path, by any actor.
• Nothing on native-asset rewards. The auto-compounding stream is exempt — it arrives in your principal untouched.
• Nothing on the token side of LP fees. Only the ETH side is charged.

The flash-loan fee is not really a fee

The 0.01% a borrower pays does not go to the protocol — it goes into the vault as permanent backing. Borrowing from a glued asset makes that asset's floor higher.

The LP trading-fee split

This one is not a protocol fee — none of it leaves the asset's own economy. Of the Uniswap trading fees an LP position earns, the staker keeps 60% directly and 40% is recycled back into the asset itself.

The recycled 40% is routed differently on each side of the pair, because each side has a different best use:

Why the two sides differ

ETH is useful as collateral, so its half of the recycled slice is added to the vault, where it raises the redemption floor for every holder and can never be withdrawn.

The token is more useful destroyed. Adding an asset to its own vault would be circular — it can't back itself — so that half is burned outright instead. Burning shrinks supply against unchanged collateral, which lifts backing per token for everyone who stays. Economically it is a perpetual, automatic buyback funded by trading activity.

What this means in practice

• Every trade strengthens the asset. Volume becomes backing, burn and staker yield at the same time — with no treasury deciding anything.
• LP stakers are paid twice. 60% of fees directly, plus a share of the recycled half that lands in staking rewards.
• Passive holders benefit too. The backing and the burn raise the floor whether you stake or not.

Creator royalties are separate and go to the creator, not the protocol: an asset's ERC-2981 receiver is paid 0.5% of the ETH side of harvested trading fees.

Pre-release

Glue V2 is in pre-release. The protocol described here is complete and under audit, but not yet deployed for public use — which is why there are no "start now" buttons anywhere. This page is the early version of the documentation: the mechanics are accurate, the packaging is not final.

Investors & partnerships

For investment, integration or partnership enquiries, reach us at info@glue.finance.