How PARE makes money, and why it compounds.
Four steps, and every one of them pays.
1. Split. A stock token goes in, a principal token and a yield token come out. 10 bps of every deposit goes to the treasury, in the stock.
2. Trade. Two pools per series. Every swap pays fees to the liquidity.
3. Borrow. Post pSPY on Morpho, take USDG. Interest to lenders, every second, all day.
4. Buy more stock with the USDG. Split again. Back to step one.
Three of those fee lines are live today. The fourth is the business: a PARE-curated USDG vault that lends into p-token markets and takes a performance fee on the yield. That opens the day the audit report is public.
Honest bit: the numbers are small right now. A handful of wallets, most of the volume ours. That's what week one of something new looks like, and pretending otherwise would be dumb. The point of a flywheel is that it's slow to start and hard to stop. Every split makes collateral. Every lender makes that collateral useful. Every new series adds another stock to the loop.
The plan from here: get people splitting, get curators lending, add series one dividend stock at a time. Each turn makes the next one bigger.
Four series, nine tokens watched, one market, five days. The wheel is built. Now we turn it.
https://t.co/N5QgFT21Z1