On Polyester, every balance users hold inside the exchange is backed 1:1 by real assets held on-chain. Inventory refers to those on-chain backing assets: the external tokens in Zipper vaults and zAssets. Supply refers to the uAsset balances they generate.
What Inventory Means on Polyester
On Polyester, inventory refers to the assets that back all uAssets inside the exchange.
Inventory exists in three forms:
External assets: Native tokens held in chain-specific Zipper vaults, such as USDT on Ethereum chain.
zAssets: Wrapped tokenized representations of those external assets on Polyester Chain. For example, zUSDT representing USDT bridged from Ethereum.
uAssets: Unified assets (uAssets) that merge multiple zAsset variants into a single balance within the Funding Account. For example, uUSDT combines zUSDT from Ethereum, zUSDT from Base, and other supported chains into one unified asset.
External assets secured in Zipper vaults are the source of truth for value. Each of these assets is represented 1:1 by a corresponding zAsset on Polyester Chain. Together, they form the full inventory backing of the exchange.
Every unit of inventory is explicitly accounted for on-chain, and all balances issued inside the exchange are redeemable against this inventory.
The Funding Account as the zAsset Inventory Ledger
The Funding Account is the sole on-chain contract that holds zAsset inventory for the Polyester Exchange.
zAssets minted by Zipper are delivered directly to the Funding Account at time of deposit. Concentrating inventory into a single, well-defined location makes it straightforward to audit on-chain.
The Funding Account and Zipper are both strictly custodial. Neither deploys inventory to external protocols, farms yield, or leverages assets in any way. The Funding Account holds zAssets; Zipper holds the underlying external assets. Assets in both remain available for withdrawal at all times.
What Supply Means on Polyester
Supply refers to the uAssets issued by the Funding Account to represent backed inventory inside the Polyester Exchange.
When zAsset inventory enters the Funding Account, the Funding Account mints an equal amount of uAsset supply 1:1. This is the mechanism that turns inventory into usable unified balances inside the exchange.
After uAssets are issued, they will exist across different exchange contracts (such as Trading or Lending). uAssets are accounted for collectively among the exchange contracts.
How Inventory Backs Unified Assets
Every uAsset is backed 1:1 by zAssets held in the Funding Account, and transitively by external assets held in Zipper vaults. Users can withdraw their entire uAsset balance at any time.
What is not always guaranteed is that inventory is balanced across chains in a way that allows withdrawal to a specific chain at a specific moment.
Example: Chain-Specific Withdrawal Limits
This example shows how total reserves can be sufficient while a specific chain lacks enough inventory to fulfill a withdrawal.
Starting state
Chain inventory
- 10,000 USDT on Ethereum
- 10,000 USDT on Solana
Total unified supply
- 20,000 uUSDT
All unified USDT is backed 1:1 by the combined reserves across both chains.
Large deposit
A new user deposits 50,000 USDT from Ethereum.
Updated inventory
- 60,000 USDT on Ethereum
- 10,000 USDT on Solana
Total unified supply
- 70,000 uUSDT
The protocol remains backed 1:1.
Withdrawal attempt
The same user attempts to withdraw 50,000 USDT to Solana.
However, only 10,000 USDT is currently available on Solana.
Even though the protocol holds 70,000 USDT in total reserves, only 10,000 can be withdrawn to Solana at that moment. In this case, the user may withdraw up to the available Solana balance, choose a different chain (Ethereum in this example), or wait for inventory to increase through deposits and rebalancing.
Inventory Rebalancing
All protocol deposits remain backed 1:1 by underlying assets at all times. Unified supply never exceeds total reserves.
Because liquidity is distributed across multiple chains, inventory levels on individual networks can vary. Active rebalancing helps ensure there is sufficient availability on each supported chain for withdrawals.
How rebalancing works
Polyester operates automated bridging tools and scripts that continuously monitor chain-specific inventory levels. When imbalances arise, the system performs controlled rebalancing actions, such as:
- Depositing assets on a chain (such as USDT on ETH)
- Withdrawing equivalent assets from a chain with lower demand (such as USDT on Avalanche)
- Bridging assets externally between networks using independent liquidity
These operations are performed using external operational funds. They do not mint additional supply, alter unified balances, or create discrepancies in protocol backing. The process redistributes existing inventory across chains to maintain healthy availability on each network.
Zipper vaults remain strictly isolated and do not participate in cross-chain bridging. All rebalancing activity uses separate operational funds that deposit to Zipper on one chain and withdraw on another to adjust inventory distribution. At no point are user deposits inside Zipper vaults moved, bridged, or exposed to external bridge logic.
Key properties
- Total reserves always remain backed 1:1
- Unified supply is never inflated or fractionalized (not even momentarily)
- Rebalancing only shifts which chains liquidity sits on Zipper, not how much exists
- Inventory alignment runs continuously to reduce chain-specific shortages
Verifying Inventory On-Chain
All inventory and supply are publicly verifiable on Polyester Scan and on Polyester’s analytics page showing TVL by chain and Zipper vaults.
For each of the contracts below, anyone can inspect on-chain balances by navigating to:
- Contracts → Read/Write proxy → Function #2 (Read Inventory Balance).
The returned data shows an exhaustive list of zAssets or uAssets held by that contract.
Key Contracts:
Every transfer into and out of these contracts is recorded on-chain, allowing the full lifecycle of inventory and supply accounting to be independently verified and audited.
A complete list of all current Zipper vaults can be found on the Vaults page.
Why Transparency Matters to Polyester
Backing, inventory, and balance accounting on Polyester are explicit and observable in real time. The values in the UI correspond to real assets held on-chain and redeemable at all times.