Logs

A log is a vault that holds one token and issues its own token in return: the log token. Log tokens use the ch prefix. Wrap ETH, get chETH.

Backing#

Each log token is backed by the tokens the log holds. 15% of fees is burned as log tokens, so the same pile of tokens is shared by fewer log tokens, and each one is backed by a little more.

Backing is measured in the underlying token, not in dollars, and nothing in a log's rules lets it fall. If ETH drops, chETH drops with it; it's still backed by at least as much ETH as before.

Why a log token's price moves on its own#

Log tokens trade in their own pool against $CHOP. When the underlying token moves, the log token's pool price lags behind. That gap is an opportunity: traders wrap or unwrap to buy low and sell high, and every move pays fees. The bigger and more frequent the swings, the more fees.

The gap#

Each log's page shows the gap: how far the log token trades from its backing, valued at the wrapped token's market price. Arbitrage only pays once the gap is bigger than the fees on a round trip. The log-side fees total about 1.5% either way: wrap (1%) and sell (0.5%) when the log token trades above backing, or buy (0.5%) and unwrap (1%) when it trades below. Arbitrage also pays the fee on $CHOP's own pool, up to 1%, so the gap needs to be a bit wider before trades happen. Inside that band, nothing happens. Outside it, traders step in, and fees flow.

Which logs you see#

Anyone can deploy a log contract, but the app only lists logs the team has verified. We pick tokens with deep, lasting liquidity. A log on a token that stops trading earns nothing.

If a log wraps a tokenized stock: tokenized stocks on Robinhood Chain have transfer rules set by their issuer. A log holding them depends on those rules.

Logs paired with other assets are on the roadmap.