Synthetic Silver Token

Synthetic Strategies and Deployment

STT's synthetics build on the hybrid allocation, focusing on implementation details:

Component	Allocation	Purpose	Expected Yield
Spot Silver	Majority	Direct backing and correlation	N/A (intrinsic value)
Futures Contracts	Adjustable allocation	Carry via curve (contango/backwardation) and basis trades	2-10% annualized
Cash & T-Bills	Adjustable allocation	Liquidity buffer and interest accrual	4-5% annualized

Deployment is team-managed at launch for precision, with plans for smart contract automation to enable transparent, on-chain rebalancing. Thresholds (e.g., 5% delta deviation) trigger adjustments, projecting 2-8% overall revenue on TVL. For a $100M TVL example:

• Annual revenue: $2-8M

• Allocation: 20-30% to ops costs; remainder to incentives

This resolves idle asset issues in traditional tokens, preserving STT's price tracking.