> ## Documentation Index
> Fetch the complete documentation index at: https://docs.checkpoint.exchange/llms.txt
> Use this file to discover all available pages before exploring further.

# Technical Overview

> How Checkpoint converts offchain points into tradeable onchain assets

# Technical Overview

Checkpoint is a decentralized protocol that bridges offchain loyalty points with onchain liquidity. Users can tokenize their points, trade them before a Token Generation Event (TGE), and redeem them for real tokens after launch.

## Five Core Contracts

<CardGroup cols={2}>
  <Card title="Registry" icon="book">
    Central configuration hub managing active points programs, tokens, and settlement rules.
  </Card>

  <Card title="Deposit" icon="inbox">
    Tokenizes offchain points. Users submit offchain points with an oracle signature and receive a deposit receipt.
  </Card>

  <Card title="Oracle" icon="certificate">
    Verifies offchain point claims through cryptographic signatures, ensuring the system stays trustless.
  </Card>

  <Card title="Market" icon="chart-line">
    Decentralized order book for pre-TGE trading with 1:1 or collateral-weighted escrow minting depending on market design.
  </Card>

  <Card title="Settlement" icon="handshake">
    Distributes real tokens and any defaulted seller USDC collateral post-TGE using program-wide settlement ratios.
  </Card>
</CardGroup>

<Note>
  Each points program also has a deposit receipt (`chXXX-R`) and an escrow token (`chXXX`).
</Note>

## Account Model

Checkpoint does not treat the transaction sender as the only user identity.

* `account` is an [ERC-7930](https://eips.ethereum.org/EIPS/eip-7930) representation of the underlying points holder, such as an EOA
* `operator` is the smart wallet currently allowed to act for that account onchain

## How It Works

### Phase 1: Deposit Points

You sign your points claim offchain with the oracle, then submit a deposit transaction. You receive a [**deposit receipt**](/core-products/checkpoint-point-nfts) that proves the deposit and tracks your points history.

### Phase 2: Trade

Before TGE, you can trade your points with other users on the [Market contract](/architecture/market-trading). Buyers mint escrow tokens either 1:1 or through collateral weighting depending on the market.

### Phase 3: Settlement

Once the real token launches, you redeem your [escrow tokens](/architecture/points-tokenization#2-escrow-token-chxxx-tokens) for the actual token at a determined ratio.

## Key Concepts

| Concept                 | Description                                                                                           |
| ----------------------- | ----------------------------------------------------------------------------------------------------- |
| **Deposit Receipt**     | Non-transferable receipt proving your point deposit and tracking history                              |
| **Escrow Tokens**       | A program-wide settlement claim minted either 1:1 or via collateral weighting depending on the market |
| **Oracle Verification** | Cryptographic validation that your offchain points exist                                              |
| **Settlement**          | Program-wide distribution of tokens and overdue USDC post-TGE                                         |

## Pre-TGE vs Post-TGE

| Aspect                 | Pre-TGE                     | Post-TGE                                     |
| ---------------------- | --------------------------- | -------------------------------------------- |
| **Your Tokens**        | Escrow tokens               | Actual project tokens and any defaulted USDC |
| **Can Trade?**         | Yes, via Market contract    | No, you own the real tokens                  |
| **Collateral Needed?** | Yes, trades require backing | No, direct ownership                         |
| **Where?**             | Checkpoint Market           | Any DEX/exchange                             |
| **Settlement**         | Coming soon                 | Completed                                    |

## Crosschain Support

For projects launching on multiple chains, LayerZero integration enables:

* Escrow tokens on multiple chains before TGE
* Crosschain settlement after token launch
* Consistent settlement accounting across chains