Skip to main contentHow Strip Grows
Strip doesn’t rely on external incentives. It feeds itself. Every vault’s yield is recycled through a closed loop that compounds collateral, buys back STRIP, and creates scarcity.
The cycle:
- Vaults generate yield
- Half compounds (makes the base bigger)
- Half buys STRIP (reduces supply)
- Bigger base generates more yield next time
- More yield buys more STRIP
- Repeat forever
As TVL grows, yield grows, buybacks grow, STRIP gets scarcer, value increases, attracts more deposits. Each cycle strengthens the next.
The Phases
Early Phase: Emissions are high, attracting liquidity and building TVL.
Mid Phase: Compounding and buybacks start to match emissions in value.
Late Phase: Emissions fade to near zero. Buybacks dominate. STRIP supply contracts while representing a larger yield base.
The system naturally transitions from growth to scarcity without governance or manual intervention.
Why This Works
Unlike most protocols where emissions end and the system dies, Strip’s yield keeps compounding and buying back STRIP forever.
The protocol doesn’t need new depositors to function. Even with zero growth, the existing base generates yield, compounds, and executes buybacks.
Growth amplifies the effect, but sustainability doesn’t depend on it. 