How yield is counted

The reserve's earnings are measured at checkpoints and shared out by supply.

Measuring what the reserve earned

Every mint, redemption, conversion, harvest and route activation starts by valuing the reserve: its USDC at face value, its Treasury holdings at the authenticated price. Whatever the reserve holds beyond what it owes, and beyond yield already recognized, is new yield.

Sharing it by supply

New yield raises a global yield index: yield per dollar of Scrip. Each Scrip's share is its supply times the rise in the index since it last settled. A Scrip with twice the supply of another earns twice as much over the same stretch.

A new deposit joins the index where it stands, so it shares only in yield recognized after it arrives.

From accrued to routed

Accrued yield waits on each Scrip until it is harvested. The keeper service harvests the Scrips in turn as it runs, one operation a minute; each harvest takes the protocol fee, then sends the rest down the Scrip's route. Each Scrip's page shows the yield waiting for harvest and the yield routed to date.

The protocol fee

The fee is a share of harvested yield, set when the reserve is created and never more than 20%. It never touches deposits. The Parameters page shows this network's value. All of the fee buys $SCRIP on the market and burns it; see The $SCRIP token.