Strip separates principal from yield.
When a depositor deposits supported collateral into Strip, they receive Principal Tokens representing their deposited value. Each vault issues its own Principal Token. PTs are vault-specific and never pooled across different underlyings. The Principal Token is the user’s claim on the principal. It is not a lockup. It is not a maturity product. It is not a withdrawal queue.
Principal stays liquid, the collateral continues to generate yield inside the system. That yield is separated from the principal and routed through Strip. The user keeps exposure to notional deposited value through the Principal Token while the yield becomes the system’s input.
This is the core distinction: Most yield systems ask users to deposit capital and wait. Strip gives the depositor a liquid claim on principal and routes the output of that capital into the STRIP loop.
Principal Tokens can be held, staked, or supplied as liquidity. Staked PTs compete for STRIP emissions. PT/STRIP liquidity providers help deepen the market around deposited collateral and STRIP.
The principal claim remains intact. The yield does the work.
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Mechanism Design