> For the complete documentation index, see [llms.txt](https://docs.axiomprotocol.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.axiomprotocol.io/protocol-design/system-overview.md). # 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 1: Axiom's dual-protocol architecture, showing the symbiotic relationship between Axiom Prime (DeFi) and Axiom Theorem (Markets)

### **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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.axiomprotocol.io/protocol-design/system-overview.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.