Why 8% on $USDST Isn't Everything
Summary
In STRATO this announcement explains why an 8% APY on $USDST can be healthy, emphasizing safety and sustainability over chasing high yields. It highlights the $USDST Savings Vault, staking to lock supply, the fixed 100 million auction cap, and the points program as tools to stabilize tokenomics.
8% on $USDST is high, but not too high.
＠kjameslubin explains why the APY number isn't the only thing that traders base their decisions on. A lot of it comes down to safety and sustainability.
Get started with the $USDST Savings Vault at https://t.co/CaZsoWmJEi
"Also, I would say that people get a different personality when the yields are too high.
Some of the bigger, more institutional players look at a really high yield, and they're like: something's wrong there; it can't be sustained. Whereas your more DeFi yield farmer might be excited by high yield — get in, and then get out in like three days or something.
So it's a little bit of an emphasis on sustainability. But also, again, the incentives have changed, so that you as a token holder don't actually want there to be a giant increase in the circulating supply of STRATO. So the staking flavor will help lock some of it up and so on. And as communicated before the auction, it's a hundred million, fixed. A bunch of it has been allocated in different buckets, but you don't want it all hitting at one time.
So the point of the points program is really now to make the system work as best as possible, and less about making sure lots of people hold the token and so on and so forth. So think of it more like a marketing budget. You know how we feel about marketing people — you want that budget as small as possible. We love all of our marketing people."
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