How ST and EPT Are Priced
NAV is the per-share USDC value of the vault. It grows as the market maker returns value through the market’s configured model, whether that is a fixed rate or a performance-fee split. NAV does not respond to orderbook activity. ST and EPT are the principal + yield and rewards-side components of a vToken. They trade on the orderbook priced in vTokens. EPT buyers pay for the rewards side of the vToken. Whatever they pay, the remainder is what ST is worth. If ST trades at $0.98 near a NAV of 1.00, the market is valuing EPT at roughly $0.02. The more someone pays for EPT, the cheaper ST gets — and vice versa. The matching service and settlement contracts keep this relationship tight. When an ST buy and EPT buy arrive together, settlement can split vTokens into ST + EPT. When an ST sell and EPT sell arrive together, settlement can recombine ST + EPT into vTokens.Returns Framing
The natural question is “is $0.02 too expensive?” The better question: what is the implied return? EPT earns credits that generate CreditTokens. Its value depends on how many CreditTokens you earn and what rewards those CreditTokens may receive down the line in the protocol.Worked Example
You use 5 vTokens to buy 250 EPT at $0.02 each during a 60-day series:| Step | What happens |
|---|---|
| Buy | 250 EPT for 5 vTokens ($5 at NAV) |
| Hold | You accrue credits over the series. Your credit share earns 55 CreditTokens. |
| Claim | Series matures. Let’s assume a 10% EPT fee (actual value can be seen on the market page). You receive 50 CreditTokens. |
| Rewards | In this example, your 50 CreditTokens are worth $0.20 each when rewards are shared. |
| Return | $10 out on $5 in = 100% return over 60 days |
Leverage and Price
EPT Price Decay
If EPT is $0.02 with 8 weeks left, you earn credits for all 8 weeks. If EPT is still $0.02 with 2 weeks left, you earn credits for just 2 weeks. Same price, very different return. In practice, EPT price decays as the series progresses because fewer credits remain to be earned. As mentioned in Orderbook Mechanics, this is why orders are priced in APR and not absolute price, since APR remains stable as time passes.Leverage Increases with Time for Same APR
If APR remains the same and your size remains the same, EPT leverage increases as you get closer to maturity. For example, suppose you spend 100 vTokens at 10% APR:- with 1 year left to maturity, that maps to about 1,100 EPT
- with 1 month left to maturity, that maps to about 12,100 EPT
- APR
- time remaining
What Drives EPT Price
| Factor | Effect on EPT Price |
|---|---|
| Time remaining | More time = more credits to earn = higher price |
| Expected CreditToken value | Higher expected reward value = higher price |
| Rewards-side demand | More buyers on EPT orderbook = higher price |