> For the complete documentation index, see [llms.txt](https://docs.basednut.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.basednut.com/liquidity/groves.md). # Groves From individual pools to a living liquidity system. The **Orchard** is the complete Based Nut liquidity graph and the groves are different collections of similar liquidity graphs.
At the smallest scale are individual assets and pools. Zoom outward and those pools form relationships: by economic exposure, function, market mechanism, lineage, routing, and topology. The tree language gives each scale a distinct name. {% hint style="info" %} ## 🌳 The framework at a glance **Assets β†’ Liquidity Structures β†’ Groves β†’ Canopy β†’ Orchard** * **Structure** tells you what kind of pool it is. * **Weights** tell you how influence is distributed inside it. * **Groves** tell you why structures belong together. * **Canopy Forms** tell you what shape their connections create. * **State** tells you what the system looks like now. {% endhint %} *** ### πŸ”¬ From Pool to Orchard The framework becomes easiest to understand by changing scale. #### πŸ₯œ Assets The vertices of the liquidity graph. * **NUT** β€” underlying root asset. * **wNUT** β€” standardized Graft rootstock. * **Scion** β€” an asset attached through a Graft. * Other Orchard assets may participate directly in Branches, Whorls, curves, wrappers, or other venues. #### 🌿 Liquidity Structures Pools are classified first by their **asset structure**.
Orchard termAssets in the poolStructure
🌿 Branch2 tokensordinary liquidity edge
🌱 Graft3 tokensrooted ternary hyperedge
🌸 Whorl4+ tokensmulti-asset hyperedge
This gives every pool one structural class. {% hint style="info" %} ## βš–οΈ Structure β‰  Weight **Arity tells you what the pool is. Weights tell you how influence is distributed inside it.** A `20 / 40 / 40` pool is not automatically a Graft. It becomes a Graft only when its three assets are: **wNUT + Scion A + Scion B** {% endhint %} *** ## 🌿 Branch A **Branch** is a two-token liquidity pool. $$ B\_{ij} = {a\_i, a\_j} $$ Examples: * NUT / WETH * NUT / SNUT * SALT / USDC * PIPS / NUT A Branch may use any supported two-asset market mechanism. Its weights can vary: * `50 / 50` * `80 / 20` * concentrated liquidity rather than fixed weights * another two-asset invariant It remains a **Branch** because it connects exactly two assets. #### 🌿 Parallel Branches The same pair can exist on multiple venues. For example: * NUT / WETH β€” Uniswap V2 * NUT / WETH β€” Uniswap V3 These share the same assets but are **different liquidity edges** because their venue, mechanism, fee structure, liquidity state, and market behavior differ. This is part of what makes the Orchard **multiplex** rather than a simple graph. *** ## 🌱 Graft A **Graft** is exactly one rooted three-token liquidity pool. $$ G\_{ij} = {\mathrm{wNUT}, s\_i, s\_j} $$ where: * **wNUT** = common rootstock * **sα΅’** = Scion A * **sβ±Ό** = Scion B Visually: ``` Scion A \ \ wNUT / / Scion B ``` The definition is intentionally strict. A Graft must contain: 1. exactly three assets; 2. wNUT as the common rootstock; 3. two Scions. Therefore: * a 2-token pool is **not** a Graft; * an unrooted 3-token pool is **not** a Graft; * a 4-token pool is **not** a Graft. #### βš–οΈ Graft Weights Weights describe the internal economic geometry of the Graft. For example, the **Twin Graft** uses: ``` 20% wNUT 40% Scion A 40% Scion B ``` But all of these could still be Grafts: ``` 33 / 33 / 33 20 / 40 / 40 50 / 25 / 25 70 / 20 / 10 ``` provided the structure remains: ``` wNUT + Scion A + Scion B ``` The rootstock defines the **Graft**. The weights define its **balance**. *** ## 🌸 Whorl A **Whorl** is any multi-asset pool containing three or more assets that is **not** a Graft. $$ W = {a\_1, a\_2, \ldots, a\_n}, \qquad n \geq 3 $$ Botanical whorls naturally vary in number, so the term remains useful across different pool sizes. A Whorl may therefore be: * **3-merous** β€” three assets; * **4-merous** β€” four assets; * **5-merous** β€” five assets; * or larger. #### 🧬 pNUT as an Heirloom Whorl The historical pNUT weighted pool is a useful example. It contains four assets at equal weight: ``` 25 / 25 / 25 / 25 ``` NUT participates as one member of the pool rather than wNUT acting as a distinguished rootstock. It is therefore: * structurally a **Whorl**; * mechanistically **Weighted**; * historically an **Heirloom**. pNUT predates the Graft architecture without needing to be retroactively forced into it. *** ## βš–οΈ Weights as the Economic Lens Structure tells us **what connects**. Weights tell us **how strongly each component participates**. The same structural object can exhibit very different economic behavior depending on its weights. #### 🌿 Branch ``` 50 / 50 ``` and: ``` 90 / 10 ``` are both Branches. #### 🌱 Graft ``` 20 / 40 / 40 ``` and: ``` 50 / 25 / 25 ``` can both be Grafts. #### 🌸 Whorl ``` 25 / 25 / 25 / 25 ``` and: ``` 70 / 10 / 10 / 10 ``` can both be four-asset Whorls. Weights influence: * inventory exposure; * rebalancing pressure; * price sensitivity; * arbitrage incentives; * effective liquidity; * capital concentration; * asset dominance; * routing behavior. {% hint style="info" %} ## πŸ”¬ Two lenses The two dimensions should remain separate. **Structure:** Branch β†’ Graft β†’ Whorl **Weight:** how economic influence is distributed inside that structure {% endhint %} *** ## 🌳 What Is a Grove? A **Grove** is a meaningful projection of related liquidity structures within the Orchard. In other words, it is a collection of liquidity pools that serve a common purpose or share a common theme. It may contain: * Branches; * Grafts; * Whorls; * several venues for the same assets; * structures already belonging to other Groves. A Grove is **not** another pool primitive. It is a way of asking: > **Which parts of the Orchard belong together under this relationship?** A Grove can be economically, functionally, mechanistically, or historically coherent. More formally: #### πŸ“ Grove projection $$ \mathcal{G}\_{\phi,t} ===================== \mathcal{O}\_t \left\[ \left{ e \in E ;\middle|; \phi(e,\lambda(e),\Sigma\_t)=1 \right} \right] $$ #### The rule **Ο†** selects the structures that belong to the Grove under a particular lens. The practical meaning is simpler: > **Change the question and you reveal a different Grove.** ## πŸ”€ One Structure, Several Groves Groves are **overlapping projections**, not mutually exclusive folders. Consider a hypothetical Graft containing: ``` 20% wNUT 40% AI Scion 40% BTC Scion ``` That single market could be described through several lenses: #### 🌱 Structure * **Graft** #### 🌾 Crop * **Compute Grove** * **Reserve Grove** #### 🐝 Guild * **Cross-Pollination Guild** * **Routing Guild** * **Price-Discovery Guild** #### 🌱 Cultivation * **Weighted Grove** #### 🧬 Heritage * whatever lineage is actually applicable Think of groves as ways of tagging and organizing collections of liquidity pools. *** ## 🌿 Canopy Forms A Grove tells us **why structures belong together**. The **Canopy** tells us what shape those structures form when viewed as a liquidity graph. Examples include: * ⭐ **Hub-and-Spoke** * 🌻 **Sunflower** * πŸ”„ **Ring** * πŸ•ΈοΈ **Mesh** * 🌳 **Hierarchical** * 🧬 **Hybrid** These are **not Grove classes**. They are the resulting liquid topology emerging from these grove classes. For example: * a **Reserve Grove** can exhibit Hub-and-Spoke topology; * an **Arbitrage Guild** can form a Ring; * several **Weighted Grafts** can form a Sunflower; * several overlapping Groves can contribute to the same Mesh. {% hint style="info" %} ## 🌿 Grove vs. Canopy **Grove:** why these structures belong together. **Canopy:** what shape their connections create. {% endhint %} *** ## 🌻 The Sunflower Example The first deliberate Graft deployment makes the distinction concrete. Several three-token weighted pools share **wNUT** as common rootstock. Each individual pool is a: > 🌱 **Graft** Together they form a: > 🌻 **Sunflower Canopy Form** The initial Grafts use the same weight geometry: ``` 20% wNUT 40% Scion A 40% Scion B ``` Examples include Scion pairs representing: * Bitcoin; * Ethereum; * stable settlement; * AI; * agents; * inference. The shared rootstock produces a rooted hyperstar: ``` VVV / DIEM β”‚ β”‚ VIRTUAL / MOR β”‚ β”‚ cbETH / wstETH ──── wNUT ──── cbBTC / tBTC β”‚ β”‚ USDC / EURC ``` Each apparent β€œpetal” represents an entire three-token Graft rather than a simple edge. The Sunflower therefore demonstrates three separate dimensions at once: 1. **Structure** β€” each pool is a Graft. 2. **Weight** β€” each begins at `20 / 40 / 40`. 3. **Topology** β€” together they form a shared-root hyperstar. *** ## 🧬 Polyculture The Orchard is not built from one AMM mechanism repeated everywhere. It contains different forms of liquidity simultaneously: * Branches; * Grafts; * Whorls; * bonding curves; * constant-product markets; * concentrated liquidity; * weighted pools; * reCLAMM; * wrappers; * nested liquidity claims. These mechanisms can connect into common routes. One existing pattern can be represented as: ``` NUT ↓ SALT ↓ USDC ↓ PIPS ↓ NUT ``` This closes a liquidity Ring while traversing several pricing mechanisms. Another route can connect: ``` NUT ↓ NUTINO ↓ cbBTC ↓ NUT ``` A single route can therefore cross several **Cultivation Groves** while simultaneously participating in a **Routing Guild**, **Arbitrage Guild**, or **Price-Discovery Guild**. That is liquidity **polyculture**. *** ## 🌳 The Three Current Practical Groves The deployed Orchard can now be viewed through three major regions. | Grove | Character | Dominant structural idea | | ----------------- | ------------- | ----------------------------------------------- | | 🌻 **Sunflower** | standardized | rooted Grafts | | 🏺 **Heirloom** | inherited | foundational Branches, Whorls, nested liquidity | | 🌲 **Polyforest** | heterogeneous | mixed structures and mechanisms interacting | Their differences are easiest to see side by side. #### 🌻 Sunflower ``` same rootstock same initial geometry different Scions ``` #### 🏺 Heirloom ``` historical NUT lineage early markets structures accumulated over time ``` #### 🌲 Polyforest ``` different assets different protocols different mechanisms shared routes ``` Together, they describe how the modern Orchard actually grew. *** ## πŸ”„ A Living Orchard The Orchard is not only a graph. It is a graph whose economic state changes continuously. Let the Orchard's state at time `t` be: $$ \Sigma\_t $$ An economic action transforms that state: $$ \Sigma\_t \longrightarrow \Sigma\_{t+1} $$ State may include: * token balances; * spot prices; * implied relative prices; * pool weights; * liquidity depth; * LP supply; * active concentrated-liquidity ranges; * ticks; * fees; * mint state; * burn state; * wrapper state; * bonding-curve state; * routing state; * arbitrage conditions. #### 🐝 Dynamic Guilds Some Grove relationships are persistent. Examples: * Reserve; * Compute; * NUT Lineage. Others depend directly on state. Examples: * Arbitrage; * Routing; * Price Discovery; * Rebalancing. A market can therefore belong to a Guild at one state and not at the next. $$ G\_i \in \mathcal{G}\_t $$ followed by: $$ G\_i \notin \mathcal{G}\_{t+1} $$ A Grove can therefore represent a **live economic projection**, not merely a static category. $$ \Sigma\_t \xrightarrow{\text{economic action}} \Sigma\_{t+1} $$ *** ## 🌳 The Complete Orchard A compact mathematical representation of the system is: $$ \mathcal{O}\_t ============== \left( V, E, I, \lambda, r, \Sigma\_t \right) $$ where: * **V** β€” assets; * **E** β€” liquidity structures and venues; * **I(e)** β€” assets participating in structure `e`; * **Ξ»(e)** β€” structure metadata; * **r = wNUT** β€” distinguished Graft rootstock; * **Ξ£β‚œ** β€” mutable economic state. The metadata attached to a liquidity structure can include: * Branch / Graft / Whorl; * venue; * pricing mechanism; * weights; * fee tier; * deployment; * lineage; * active state; * historical classification. The Orchard can therefore be described as: > **a rooted, typed, multiplex liquidity hypergraph with mutable economic state.** *** ## 🌳 The Layers of the Orchard The system is a composition of layers, not a linear chain mediated by NUT and wNUT. ``` ASSETS β”‚ β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β” β”‚ β”‚ β”‚ NUT wNUT other assets β”‚ β”‚ β”‚ β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜ β”‚ β–Ό LIQUIDITY STRUCTURES β”‚ β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β” β”‚ β”‚ β”‚ Branch Graft Whorl β”‚ β”‚ β”‚ β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜ β”‚ β–Ό GROVE PROJECTIONS β”‚ β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β” β”‚ β”‚ β”‚ Crop Guild Cultivation β”‚ Heritage β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜ β”‚ β–Ό CANOPY TOPOLOGY β”‚ β–Ό ORCHARD β”‚ β–Ό MUTABLE STATE ``` wNUT is specifically the common **rootstock of Grafts**. It is not a mandatory intermediary for every Branch, Whorl, curve, or other market in the Orchard. But this adds specificity to the wNUT role. *** ## .πŸ—ΊοΈ Reading Any Part of the Orchard For any liquidity structure, ask these questions in order. #### 1. πŸ”¬ What is it? * 2-token β†’ **Branch** * rooted `{wNUT + Scion + Scion}` β†’ **Graft** * other 3+ token β†’ **Whorl** #### 2. βš–οΈ How is it weighted? Examples: * `50 / 50` * `20 / 40 / 40` * `25 / 25 / 25 / 25` * concentrated range * another market geometry #### 3. 🌾 What grows there? **Crop Grove** * Reserve * Settlement * Compute * Infrastructure * Capital #### 4. 🐝 What does it do? **Guild Grove** * Routing * Arbitrage * Price Discovery * Cross-Pollination * Yield * Rebalancing * Attestation #### 5. 🌱 How is it cultivated? **Cultivation Grove** * Bonding Curve * Constant Product * Concentrated Liquidity * Weighted * reCLAMM #### 6. 🧬 Where did it come from? **Heritage Grove** * NUT Lineage * Nested Lineage * Heirloom * provenance #### 7. 🌿 What shape does it help create? **Canopy Form** * Hub-and-Spoke * Sunflower * Ring * Mesh * Hierarchical * Hybrid #### 8. πŸ”„ What state is it in? Current: * balances; * prices; * weights; * liquidity; * routes; * arbitrage; * LP state. *** ## πŸ₯œ Canonical Orchard Vocabulary
TermMeaning
πŸ₯œ NUTunderlying root asset
🌱 wNUTcommon Graft rootstock
🌿 Scionasset attached through a Graft
🌿 Branch2-token liquidity pool
🌱 Graftrooted {wNUT + Scion + Scion} three-token pool
🌸 Whorlany other 3+ token pool
🌳 Grovesemantic subgraph projection
🌾 Cropeconomic exposure
🐝 Guildeconomic function
🌱 Cultivationpricing / liquidity mechanism
🧬 Heritagelineage / provenance
🌿 Canopygraph topology
πŸ”„ Statecurrent mutable economic condition
🌱 Nurseryproposed or undeployed structures
🌳 Orchardcomplete liquidity system
{% hint style="info" %} ### πŸ₯œ One word, one concept **The pool tells you its structure.** **The weights tell you its balance.** **The Grove tells you its relationship.** **The Canopy tells you its shape.** **The state machine tells you how it changes.** **The Orchard contains all of it.** {% endhint %}