Principal Tokens make deposited collateral liquid. PT/STRIP liquidity makes that liquidity useful.
When a depositor receives Principal Tokens, they hold a claim on deposited value. That claim can be held, staked, or supplied into a PT/STRIP pool. The pool connects the principal side of Strip to the token side of Strip.
This matters because Strip has two markets to strengthen: One market is the productive base: collateral enters, yield is harvested, and Principal Tokens represent the claim on deposited value. The other market is STRIP: yield is routed into buybacks, emissions are distributed to aligned participants, and supply is removed through burn.
Liquidity providers supply both sides of the loop. They deepen the market around Principal Tokens and STRIP, making entry and exit more efficient while helping the system price the relationship between deposited collateral and the token absorbing its yield.
A user who supplies PT/STRIP liquidity is not only depositing capital. They are supporting the market structure that allows the loop to operate with depth. Productive collateral creates yield. Routed yield creates STRIP demand. PT/STRIP liquidity connects the claim on principal to the asset that receives the output.
sWLP is the ERC20 share token issued by the PoolWrapper for canonical PT/STRIP liquidity. It represents the LP position users receive after depositing into the wrapper. sWLP can be staked to earn STRIP emissions and receive Lockless Boost. It redeems back into PT and STRIP at the prevailing pool ratio.
Mechanism Design