Strategy Token (ST)

Each vToken can be part of a series. A series is a fixed period of time with a maturity date where users can separate the principal + yield side from the rewards side. ST is the component you hold when you want principal + yield exposure and are willing to give up the rewards side until maturity.

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What Is ST

Every vToken in a series splits into: $1 \text{ vToken} = 1 \text{ ST} + 1 \text{ EPT}$ One side wants rewards-side exposure and pays upfront for EPT. The other side gives up that rewards side and holds the principal + yield side through ST. ST represents your claim on the vault’s principal + yield side. The vault returns value through either a fixed rate or a performance-fee split, and that value flows into NAV over time. At maturity, ST redeems back into vToken. ST trades on the ST/vToken orderbook. You buy ST at a discount, so the price of ST is below 1 vToken. In dollar terms, that means ST trades below NAV. The discount exists because EPT buyers are paying for the rewards side of the vToken — the more they pay for EPT, the cheaper ST gets. See Orderbook Guide for how to reason about APR and place ST orders in the app.

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Buy the Discount

EPT buyers pay for the rewards side of the vToken, leaving ST available below 1 vToken. In dollar terms, ST trades below NAV. That discount is the yield seeker’s opportunity. Example. NAV is 1.00. ST trades at $0.98. The vault pays 12% net APR. Over a 60-day series:

• Discount per vToken: $0.02
• 1 vToken yield in 60 days: 12% × 60/365 = $0.02
• Total Yield = 0.04 / 0.98 = 4% per series, or ~24% annualized

The deeper the discount, the higher the effective return.

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Redemption

At maturity, 1 ST = 1 vToken. Your ST redeems back into vToken. Your ST is burned. No fee on redemption.

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Selling Before Maturity

Sell ST on the orderbook at any time before maturity. You receive vTokens. This is a market sale, not redemption — you get whatever price the market offers. As the series approaches maturity, ST price tends to converge toward NAV (in $) or 1 vToken.

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What Drives ST Price

The ST discount reflects the market price of the rewards side. When rewards-side demand is high, EPT buyers pay more, widening the ST discount. Yield seekers buy ST at that discount and earn a higher effective return.