Core Synthetic Design

SilverTimes introduces a pioneering synthetic token architecture for its SilverTimes Token (STT), designed to provide seamless exposure to silver prices while incorporating mechanisms for stability, revenue generation, and long-term ecosystem sustainability.

At its foundation, the token employs a balanced allocation strategy: the majority of the underlying value is secured by physical spot silver holdings, ensuring direct asset correlation and tangible backing, while the remaining is diversified across futures contracts, cash equivalents, and U.S. Treasury bills.

This hybrid model is strategically positioned to capitalize on the anticipated surge in silver prices. By combining spot exposure with selectively timed derivative instruments, it amplifies potential upside from market rallies while maintaining flexible leverage. The framework anticipates a tightening supply-demand dynamic and increasing investor appetite for hard assets, positioning the strategy to benefit from silver's expected appreciation.

Currently, the allocation is managed by the core team to ensure precise execution and risk oversight during the initial phases. In the future, this process will transition to full automation via smart contracts for enhanced transparency, with the governance model enabling community-driven adjustments to parameters such as allocation ratios or hedging strategies.

The system operates through real-time adjustments facilitated by trusted oracles for accurate pricing data. For instance, the spot silver component is custodied in secure vaults, providing intrinsic value, while the futures allocation captures price differences in basis trading, averaging 2-10% annualized based on historical market data. Combined with yields from U.S. Treasury bills, currently around 4-5% annually, this structure is expected to generate overall revenue of 2-8% on the total value locked, depending on market conditions.

This revenue stream addresses a core limitation of traditional silver-backed tokens, which often incur net costs from storage and management without inherent yield mechanisms. By embedding revenue generation directly into the design, SilverTimes ensures that STT holders retain full price exposure to silver without dilution, while the protocol accumulates funds for operational efficiency.

Backed by Alexis Investment Limited, a major subsidiary company of ex-TSX Venture listed mining company, GobiMin Inc., with its extensive expertise in metal mining and trading, the design benefits from robust supply chain integration, enhancing the procurement and management of physical silver components.