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Principal Tokens make deposited collateral liquid. PT/STRIP liquidity makes that liquidity useful. Every vault has its own PT/STRIP pool connecting the principal side of Strip to the token side; the docs say PT/STRIP for simplicity, and everything on this page applies to each vault’s pool.

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Why this market matters

Strip has two markets to strengthen. One is the productive base: collateral enters, yield is harvested, and Principal Tokens represent the claim on deposited value. The other is STRIP: yield is routed into buybacks, emissions are distributed to aligned participants, and supply is removed through burn. PT/STRIP liquidity providers supply both sides of the loop at once. They deepen the market around Principal Tokens and STRIP, make entry and exit more efficient, and help the system price the relationship between deposited collateral and the token absorbing its yield. And because each position is 90% PT, providing liquidity is itself demand for principal claims: LPs grow the productive base while they deepen the market around it.

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The 90/10 pool

Each pool is weighted 90/10 in favor of PT, enforced by a custom Uniswap v4 hook’s curve math rather than active rebalancing. The heavy PT weighting anchors the market around principal value: the pool offers deep, low-slippage execution for STRIP holders buying into principal claims, which is the dominant flow the system is designed around. Every trade pays a fixed 0.3% swap fee, split by the hook between STRIP stakers, operations, and LP reserves. See Fees & Allocations.

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sWLP: the only LP position

Each pool has its own PoolWrapper, and each wrapper issues its own sWLP: the ERC-20 share token for that vault’s pool. All liquidity in a canonical pool flows through its wrapper: the wrapper is the sole address authorized to add or remove liquidity, enforced by the hook itself. There is no separate or “direct” LP position on any canonical pool; sWLP is the LP position. This is a solvency boundary, not a toll. The hook maintains its own reserve accounting for the 90/10 curve, and the wrapper is the single, atomic path through which that accounting changes. One canonical position, fungible shares, no parallel liquidity that the pool’s math cannot see. Deposits through a wrapper are proportional to that pool’s current ratio, and sWLP redeems back into its pool’s PT and STRIP at the prevailing ratio. Staked sWLP earns STRIP emissions and is eligible for Lockless Boost; exposure across every pool’s staked sWLP counts toward the same single alignment clock.

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Canonical pools and convenience venues

The PT/STRIP pools are the canonical venues: hook-enforced 90/10 curves, the fee split above, emissions, and boost. Alongside them, the protocol seeds one small STRIP/USDC convenience pool at launch, funded by the treasury as unstaked protocol-owned liquidity. It exists for aggregator routing and price visibility: a stable-quoted pair gives indexers a clean USD reference and routers a common leg between the PT pools. It is deliberately kept outside the incentive system: no hook, no fee split, no emissions, and it does not count as an alignment venue for Lockless Boost. The protocol never relies on it as a price source. Anyone remains free to create independent pools elsewhere (Uniswap is permissionless), but such pools are not canonical: they receive no emissions, do not feed the protocol fee split, and are not part of the system described in these docs.

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How LPs earn