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How Strip works
A supported yield-bearing asset enters the system. The depositor receives Principal Tokens representing the deposited value. Principal remains withdrawable. The collateral remains productive. The yield becomes the input.
When yield is realized, the system splits it by design. Half is used to buy and burn STRIP. Half compounds back into the collateral base.
The first half creates recurring STRIP demand. Productive collateral becomes a source of buy pressure for the token. STRIP is accumulated and removed from circulation through buyback and burn.
The second half increases the productive base. More collateral remains inside the system, generating more yield for future cycles. Growth is not only distributed. It is retained.
This creates the core loop where productive collateral generates yield. Yield creates STRIP demand. Compounded collateral increases future yield. Incentives direct participation toward the parts of the system that strengthen the loop.
Principal Token holders can stake PTs to receive STRIP emissions. Liquidity providers can supply PT/STRIP liquidity to deepen the market around deposited collateral and STRIP. Both compete for incentives through sustained alignment.
Strip does not rely on lockups to hold capital in place. Capital can leave. Boost multipliers reward the behavior of staying aligned, not the act of being trapped.
The mechanism is direct: keep principal liquid, route yield into STRIP demand, compound part of the output, and distribute incentives to the users who reinforce the system.
