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Ban1

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General concepts​

sTAN stands for staked TAN, and is the yield-bearing version of TAN. It is simply needed to hold it in a wallet to earn yield. sTAN holders earn the a portion of protocol earnings, which are distributed as autocompounded TAN, and can’t participate in Tangent’s governance. sTAN can be minted and redeemed for TAN without any fee or delay, and can be used like any token in DeFi protocols. sTAN is implemented using the Yearn v3 vault standard.

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Rewards distribution​

As sTAN is a yield-bearing tokens, rewards are autocompounded. The ratio of TAN per sTAN always grows over time, as sTAN accrues rewards from the system’s earnings. In other terms, each sTAN is backed by an always increasing amount of TAN as time passes. 10% of protocol earnings are used to purchased TAN from the open market to provide its yield to sTAN.

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Example​

Below is an example of how the ratio of TAN per sTAN rises over time. In the situation where:
  • sTAN index = 1.025
Each sTAN can be redeemed for 1.025 TAN, and one TAN is worth 0.9756 sTAN. As time passes and rewards are distributed, the index goes up. If we now have:
  • sTAN index = 1.05
Each sTAN can now be redeemed for 1.05 TAN, and one TAN is worth 0.9524 sTAN.