Accre

An Accretion Fund (AF) is an on-chain open-ended fund represented by ERC-20 token shares issued in exchange for collateral deposited.

Accretion Funds are based on a single collateral asset, and NAV per share is measured in collateral terms, not USD.
Accretion Funds calculate NAV per share directly from on-chain collateral reserve and outstanding shares.
Accretion Funds remain fully collateralized and liquid at all times, and fund shares are always instantly redeemable.
In Accretion Funds, all fund functions—including custody, pricing, issuance, redemption, and accounting—are integrated into a single, monolithic smart contract that is fully autonomous, neutral, and immutable.

As financial instruments, Accretion Funds are designed to enable the maintenance of exposure to an underlying asset while providing systematic accretion of that exposure over time. For example, instead of holding idle USDC balances directly, participants can deploy their USDC into a USDC-based Accretion Fund, allowing their principal to systematically accrete (i.e., earn more USDC) as fund activity develops.

Accretion Funds accrete value through increases in NAV per share through fund activity and flow, with shareholder value accretion being generated by contract-embedded, NAV-referenced bid–ask execution spreads that are accrued by outstanding shares.

As a result, NAV per share monotonically increases in collateral terms as activity accumulates: at every transaction within the fund, whether a subscription or redemption, NAV per share increases, and consequently, so does the value of every shareholder’s position. In other words, every activity within a fund generates earnings for its participants through NAV per share accretion.

In Accretion Funds, NAV accretion occurs through a fixed bid–ask spread embedded in every subscription and redemption. On subscriptions, shares are issued at a marginal premium to NAV (NAV + ε); on redemptions, shares are redeemed at a marginal discount to NAV (NAV − ε).

On subscriptions, the premium means the fund receives more collateral than the NAV of the shares issued. On redemptions, the discount means the fund returns less collateral than the NAV of the shares redeemed. In both cases, the difference is accrued by the fund's total NAV, increasing collateral per outstanding share, and subsequently, the NAV per share.

At every transaction within the fund, the retained spread increases the fund’s NAV in collateral terms, resulting in a monotonic increase in NAV, never falling below its prior value.

In Accretion Funds, NAV monotonically increases because the bid–ask spread is internalized by the fund on every transaction.

In subscriptions, participants provide more collateral than the NAV of the shares issued.
In redemptions, participants receive less collateral than the NAV of the shares redeemed.

In both cases, the difference is retained by the fund, increasing collateral relative to shares outstanding. As a result, each transaction increases NAV per share, establishing a monotonic value trajectory in collateral terms.

This mechanism is fully contract-based, neutral, and cryptographically atomic, deterministic, and verifiable. Transactions are executed directly by the smart contract based on its internal accounting, without intermediaries or discretionary pricing.

No. In Accretion Funds, NAV per share is designed to be monotonically increasing in collateral terms, never falling below its prior value. Every subscription and redemption mechanically increases NAV per share, ensuring that it cannot fall below its previous level as a result of fund activity.

Importantly, this property is enforced directly at the smart contract accounting layer through deterministic state-transition rules.

Fundamentally, Accretion Funds launched by Accre are permissionless, autonomous smart contracts that enable users to interact directly with the fund on-chain, on a peer-to-contract basis, without intermediaries. Users can also access Accretion Funds through Accre’s infrastructure stack, including a web-based trading platform, trading and data APIs, CLI, and MCP, all purpose-built for interacting with Accretion Funds.

Structurally, participants are exposed to the underlying collateral asset risks in which an Accretion Fund is based on.

From an architectural perspective, Accretion Funds are built on a proprietary smart contract framework that has undergone extensive private peer reviews. As with any software system, Accretion Funds remain subject to potential bugs. The Accretion Funds architecture is intentionally designed around simplicity, deterministic accounting, and a monolithic contract structure to maximize robustness and reliability.

No. Accretion Funds are designed to remain fully collateralized and liquid at all times. Every share is backed by liquid underlying collateral, and redemptions are processed directly against the fund’s on-chain collateral balance.

The protocol’s accounting and state-transition rules are designed to prevent insolvency under all admissible transactions, with no reliance on external liquidity providers or off-chain settlement.

Accre introduces Accretion Funds (AFs) — a new class of open-ended funds designed to enable the maintenance of exposure to an underlying asset while providing systematic accretion of that exposure over time.