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Supported collateral produces output over time. When that output is harvested, Strip routes it through a fixed split: one half into STRIP demand, one half back into the collateral base. The rule is set in code and applies identically to every vault.

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Half buys and burns STRIP

50% of realized yield is used to buy STRIP from the market and burn it. This turns productive collateral into recurring demand for the token: yield is no longer only a payout; it becomes buy pressure, then supply reduction. The buyback is executed by the BuybackBurner, which redeems accumulated yield, swaps it to STRIP through whitelisted routes, and burns the result. Every execution is recorded onchain and surfaced on the transparency dashboard.

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Half compounds

The other 50% is retained inside the vault. The collateral base grows, future yield capacity increases, and the next harvest starts from a larger foundation. This is the part of the loop that makes the demand recurring rather than one-off: a vault that compounds produces more routed output every cycle.

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Why the split is fixed

Routing is what connects collateral to STRIP. A discretionary split would make the connection a governance decision; a fixed split makes it a property of the system. Different collateral types can produce different kinds of yield, but the destination is unified: every supported asset feeds the same demand path. The 50/50 rule cannot be changed without redeploying the protocol. See Trust Assumptions.

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What routing runs on

Strip runs on realized yield, not projected APR. A harvest only routes what the collateral actually produced. If underlying yields fall, routed output falls with them; see Risks for how yield risk propagates through the system.