Price
--
NAV
Premium
Backing
--%
Token Redemption
Mechanism for swapping tokens for physical silver value.
Redemptions Locked
Physical redemptions activate when backing exceeds 100%
Progress to Unlock
--%
Current Backing
--%
Target
100%
Deficit
--%
Why the Threshold?
To prevent protocol death, redemptions are gated by treasury over-collateralization. This ensures sustained existence of reserves during early volatility phases and ensures sustainable long-term operation.
Redemption Process
Upon reaching the activation threshold, holders can burn tokens for pro-rata silver value delivered via SLVon on Ethereum.
Arbitrage Mechanism
Once redemptions are active, any sustained discount below NAV creates an arbitrage opportunity. Traders can buy discounted tokens and redeem for silver value, naturally stabilizing the peg and preventing prolonged price deviations.