$STS Token issuance

How STS tokens are minted

Share Issuance (STS Tokens)

• When you stake USDC into the SubVault, the protocol mints STS tokens to your wallet.

• STS stands for “SubVault Shares” – effectively, they are receipt tokens that denote your share of the vault’s pool.

• If you deposit 1,000 USDC into the vault, you will receive 1,000 STS (assuming a 1:1 issuance rate, which is the case initially).

• If you later add more USDC, you get more STS ; if you withdraw, the corresponding STS are burned. These STS tokens do not accrue interest or change in quantity on their own; they simply track your portion of whatever is in the vault.

• Importantly, STS are non-transferable (more on that in the Smart Contract Summary section) – they cannot be traded or moved to another person. They exist solely to represent your claim on the vault’s USDC or any resulting property allocation.

• Holding STS is a prerequisite for later receiving the actual property tokens when an acquisition occurs. In summary, staking USDC yields STS , which is your ticket to either withdraw your USDC or convert into the property tokens later.

Issuance Post-Acquisition Example

The issuance rate will change as properties are acquired. Let's use an example to illustrate this:

1. There's 1 million USDC in the subvault, and you own 100k STS, and there's a total supply of 1 million STS. Since you have 10% of the STS tokens, you can redeem 10% of the subvault's USDC, so your STS tokens are worth 100k USDC.

2. 500k USDC is withdrawn for a property acquisition, meaning there is now 500k USDC left in the subvault.

3. Your 100k STS is now worth 10% of the 500k USDC in the subvault, so 50k USDC.

4. Of course, you will also receive an airdrop of 10% of the UNIT tokens for the new property.

5. Now let's say you want to stake 50k more USDC into the subvault:

   1. There are 1 million STS tokens total, and each is worth 0.5 USDC (since the vault now holds 500k USDC).

   2. To maintain proportional ownership, you'll receive 100,000 new STS tokens for your 50k USDC deposit (since 50,000 / 0.5 = 100,000).

   3. So after staking:

      • You now hold 200,000 STS tokens (your original 100k + 100k new).

      • The total STS supply is now 1.1 million.

      • The vault now holds 550k USDC.

      • Your ownership percentage is now: 200k STS / 1.1 million STS = 18.18% of the vault.