> ## Documentation Index
> Fetch the complete documentation index at: https://docs.stripyield.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Why Strip Exists

Yield-bearing collateral changed the shape of DeFi. Capital no longer needs to sit idle. Staked assets, liquid restaking tokens, yield-bearing stablecoins, and productive LP positions all create output while they remain in use.

But most systems treat that output as something to distribute: Yield is paid out. Yield is sold. Yield becomes passive income. The value leaves the asset that produced it and rarely returns as persistent demand.

Strip exists because productive collateral should do more than generate income: It should coordinate demand. When supported collateral enters Strip, the depositor keeps a liquid claim on principal through Principal Tokens. The yield is separated from the principal and routed through the system.

Part of that yield buys and burns STRIP. Part of it compounds back into the collateral base. The rest of the system is built around directing incentives toward the users who strengthen that loop.

This changes the role of yield. It is no longer only a payout to the depositor. It becomes a recurring input into token demand, collateral growth, and liquidity formation.

Strip gives assets that produce value a destination.