The mechanism

The sink

pValhalla, pOHM, and how fees on a wrapper permanently strand ODIN. Built with Peapods Finance.

The sixteenth pool is not like the other fifteen. It's the supply-side mechanism — where ODIN goes to stop circulating.

Naming. This is the sink — the accurate word, because what it does is absorb. The pValhalla name is an artefact of the wrapper's deployment; the contract is immutable, which is rather the point.

What pValhalla is#

pValhalla is a Peapods Finance pod that wraps ODIN. Deposit ODIN, receive pValhalla; unwrap to redeem. pOHM is the same thing for OHM.

The sixteenth pool pairs the two wrappers: pValhalla/pOHM. Because pValhalla is wrapped ODIN, arbitrage keeps its price consistent with the other fifteen pools — which is what routes flow into the wrap/burn path.

pValhalla is not a wrapper for OHM. It wraps ODIN; pOHM wraps OHM. Two separate pods paired in one pool.

The fees#

Event Fee
Wrap / unwrap 1%
Trading 0.77%

Distribution:

Share Destination Effect
50% Burn pValhalla The deflation channel
45% pValhalla/pOHM LP providers Fee share
5% PEAS treasury Supports Peapods development

Set at construction, with no admin who can change the split.

How burning a wrapper strands ODIN#

  1. Fees burn pValhalla#

    Half of every fee collected burns pValhalla tokens.

  2. The underlying ODIN doesn't leave#

    When pValhalla burns, the ODIN backing it stays in the pod, redistributed across remaining pValhalla holders — every surviving pValhalla is backed by slightly more ODIN.

  3. 33,333,333 pValhalla sit at the dead address#

    A permanently locked position that receives its share of every redistribution, forever.

  4. That share is stranded#

    ODIN accruing to a position nobody can redeem has left circulation permanently.

The chain: activity → fees → pValhalla burned → ODIN redistributed → the locked 33,333,333 absorbs its share → circulating ODIN shrinks. Nobody triggers it, no discretion shapes it. Same principle as the locked pools: convert activity into permanence.

Two things people get wrong#

Pool reserves are never burned

The burn only touches ODIN moving through the pValhalla contract. The ODIN in the sixteen pools stays put. Deflation shrinks circulating ODIN around the pools — they become a growing share of a shrinking supply without anyone moving anything.

LP-held ODIN benefits too

The value lift accrues to all remaining ODIN — in wallets and pool reserves alike. So the automated market makers quietly appreciate from the burn on top of compounding k from fees.

The rate, honestly#

This is slow, and it arrives in steps.

Across a trailing year the contraction is a fraction of a percent — and it's a staircase, not a smooth rate. Annualising a step produces a number that means nothing.

Permanent and one-way; neither makes it fast. Anyone presenting ODIN's deflation as a near-term driver is overselling a real thing — measure the window yourself.

The dependency#

The sink is the one part of ODIN that depends on someone else's live code.

pValhalla itself is immutable — non-proxy, no owner, no pause, fees fixed at construction, staking withdrawal restricted to each holder's own position. Verified against the deployed bytecode, not a repository branch (which has since moved to an upgradeable codebase).

The qualifier: Peapods' protocol-level fee router is admin-mutable. It touches the rewards leg — not principal, not the burn — but it's the largest single live dependency ODIN carries. We name it rather than round it away. Audits and dependencies.

Peapods documentation and audits: peapods.finance

The third channel#

pValhalla isn't the only supply sink. Every fully diluted pair strands k ÷ max_supply ODIN that nobody can buy out — and because k only ratchets, that quantity only grows. Same permanence as the dead address, reached by arithmetic instead of transfer, so it belongs on the same ledger.

The curve, and the floor beneath it · Burn accounting