Expected Points Token (EPT)

Want leveraged exposure to exchange points without running a trading strategy yourself? EPT is your token.

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What Is EPT

EPT is your claim on exchange points earned by a strategy during the epoch. Each epoch creates one EPT per strategy. When you deposit USDC, you receive both ST and EPT. When the epoch matures, your EPT entitles you to a share of the total points earned, proportional to the credits you accrued. You then claim your points as PointsTokens. EPT trades on the EPT/USDC orderbook. You can buy more EPT to increase your points exposure, or sell EPT if you only want the USDC yield from ST. If a strategy earns points on multiple exchanges, your single EPT covers all of them. At maturity, you claim separate PointsTokens for each exchange.

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The Credit System

Credits determine your share of points. The system periodically updates the credits per EPT based on the strategy’s open interest and activity on the exchange. While you hold EPT, your credits accumulate based on these periodic updates: $\text{your credits} = \text{EPT balance} \times \text{credits per EPT per update} \times \text{number of updates held}$ The key rules:

• Credits are personal. They belong to the holder, not the token.
• Fresh start on acquisition. Whether you mint new EPT or buy it on the orderbook, your credit counter for those tokens starts from the current credit index. The seller’s accumulated credits stay with the seller.
• No transfer of credits. When EPT changes hands, the seller keeps all credits earned up to that point. The buyer begins accruing from their moment of acquisition.

Because points are distributed weekly, earlier holders benefit from weeks when fewer people hold EPT and the credit pool is smaller. Those early weeks are locked in — later entrants cannot dilute them.

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How Credits Determine Your Points

Points are distributed weekly, not as a single lump sum at epoch end. Each week’s points are split among that week’s credit holders: $\text{your\_points} = \sum_{w} \frac{\text{your\_credits}_w}{\text{total\_credits}_w} \times \text{points}_w$ This means early holders benefit. In early weeks when fewer people hold EPT, the denominator is smaller and each holder gets a larger share of that week’s points. Once those early weeks are locked in, later entrants cannot dilute them.

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Worked Example

10-week epoch. Strategy earns 500 points per week (5,000 total). Alice holds 100 EPT from week 1. Bob buys 100 EPT at week 7. Alice earns 80% of total points. The weekly structure rewards her for being early: she was the sole credit holder in weeks 1-6, so she captured 100% of those weeks’ points. If points were distributed only once at epoch end, using total credits accumulated over the full epoch, Alice would get less. Assume a simplified model where each EPT earns exactly 1 credit per week: Under this epoch-end method, Alice gets 71.4% instead of 80%. Weekly settlement preserves the advantage of holding earlier in the epoch.

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Why Credit Amounts Vary

Credits per EPT are not fixed. Amounts vary as we track strategy performance off-chain. For the full mathematical treatment, see Credit Mathematics.

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EPT Pricing

EPT has a fair value determined by the minting relationship between ST and EPT: $\text{EPT}_{\text{fair}} = 1 - \frac{X}{R}$ Where:

• X = ST market price on the ST/USDC orderbook
• R = NAV (net asset value per share)

Intuition: A $1 deposit creates both ST and EPT. If ST trades at $0.92 and NAV is 1.00, the implied EPT value from minting parity is $0.08. On the orderbook, actual EPT prices are set by supply and demand — arbitrageurs bring them close to fair, but the market has the final say.

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The Returns Frame

Rather than asking “is $0.10 too much for an EPT?”, think about the implied return. EPT decays in value over the epoch as time remaining decreases (fewer credits left to earn). The EPT price at any moment reflects the market’s view of the remaining points value. Early in the epoch, the same EPT costs more because there are more credits left to accrue. Full pricing analysis and decay mechanics are covered in EPT Pricing.

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Claiming Points

After the epoch matures, claim your share as PointsTokens. Your allocation is based on your credit share. PointsTokens are minted to your wallet. Each epoch produces a separate EPT. You claim from each epoch independently. Credits do not carry over between epochs.