shYEET
The Token
shYEET is the token issued by the YEET Asset Treasury (YAT) to contributors. It represents a liquid claim on YAT’s treasury.
Ownership: Each shYEET corresponds to a pro-rata share of the treasury’s assets.
Value: The reference value is current treasury value, calculated as the total market value of the treasury divided by the circulating supply of shYEET.
Liquidity: shYEET is transferable and can trade on secondary markets
Accrual: As the YAT treasury grows over time through yield strategies and YEET accumulation, the MNAV of shYEET increases, giving holders exposure to that growth.
Optional Exit: In addition to trading, shYEET holders may redeem a pro-rata share of the treasury during scheduled redemption windows.
Issuance
shYEET is issued through bond rounds. These sales are discretionary and will only occur when market conditions are strong, ensuring that new issuance powers the treasury without diluting existing holders. YAT will only issue new shYEET under pre-defined conditions. Issuance may occur when:
Treasury YEET holdings have increased since the last issuance.
MNAV holds a sustained premium (≥1.1% over a 7-day average).
Issuance size is capped at 15–20% of supply.
A large strategic partner (DAO, fund, validator) wishes to enter.
Issuance will never occur if:
MNAV is below 1
Issuance would reduce YEET backing per shYEET below 1.
Treasury YEET balance is flat or lower than the last issuance.
Redemptions
Redemptions will not be continuously available. Instead, they will occur during discrete windows opened at the discretion of the YAT. This design ensures that liquidity is available to holders while protecting the long-term health of the treasury. Redemptions will be carried out through an Sequential Dutch Auction (SDA) hosted in YeetBonds. The auction references the MNAV of shYEET and initiates at a 20% premium, falling over time to a "floor" price of 10-20% discount.
The “price” of redemption begins high, and decreases with time
As redemptions begin to happen, price stops decreasing and may even start to increase. The greater the size and velocity of redemptions, the more the price increases. If redemptions stop happening or slow down, price begins to decay again
This is the most fair way of enabling redemptions: those willing to bid highest or wait the longest are rewarded
This helps the YAT by ensuring that any heavy exit demand comes at progressively worse terms, leaving more value in the treasury for remaining shYEET holders.In case of large exit demand, the Sequential Dutch Auction makes it such that exits during this time do so significantly under MNAV, leaving surplus backing in the treasury, favoring the remaining holders.
This chart vizualizes and give an example of how many YEET can be redeemed per one shYEET based on demand.
If there is high redemption demand, the amount of YEET redeemed per shYEET decreases (worse for user)
If there is low redemption demand, the the amount of YEET redeemed per shYEET increases (better for user)
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