# System Overview

Axiom operates as two symbiotic smart contract systems deployed on the **XRPL EVM Sidechain**:

* **Axiom Prime** — manages staking, yield, and percentile-based governance eligibility.
* **Axiom Theorem** — creates, trades, and resolves event markets, using staker-based voting and penalties for enforcement.

<figure><img src="/files/M7laK8vuZiNBsulKPgms" alt=""><figcaption><p><em>Figure 1: Axiom's dual-protocol architecture, showing the symbiotic relationship between Axiom Prime (DeFi) and Axiom Theorem (Markets)</em></p></figcaption></figure>

### **Core Design Goals**

1. **Unified Liquidity:** all protocol operations are powered by XRP at launch, with stablecoin support (USDC, USDT, RLUSD, or others) added as ecosystem liquidity develops.
2. **Economic Truth:** outcomes are verified by stakers with the highest financial exposure.
3. **Sustainability:** yield flows from organic market activity, not inflation.
4. **Accountability:** misaligned behavior is punished via proportional stake penalties.

The protocols reinforce each other: Axiom Theorem generates yield for Axiom Prime, while Axiom Prime stakers guarantee Axiom Theorem's integrity.


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