Pool Token Pricing

Piron pool tokens represent a direct claim on the Net Asset Value (NAV) of the underlying assets in a pool. The price of a token is determined by dividing the pool’s total NAV by the number of tokens outstanding.

How NAV Works

At any given time, the NAV reflects the total value of the pool’s holdings:

NAV=Market Value of Instruments+Cash Buffer+Accrued Interest−Fees\text{NAV} = \text{Market Value of Instruments} + \text{Cash Buffer} + \text{Accrued Interest} - \text{Fees}NAV=Market Value of Instruments+Cash Buffer+Accrued Interest−Fees

  • Market Value of Instruments: T-bills, bonds, or other money market instruments held.

  • Cash Buffer: Liquidity set aside to support redemptions.

  • Accrued Interest: Yield earned but not yet matured or paid.

  • Fees: Management and operational costs deducted from NAV.

NAV per Share (Token Price)

The price of each Piron token is simply:

  • When NAV increases as yield accrues → token price rises.

  • When investors redeem → tokens are burned and NAV/share remains stable for others.

  • At launch, token price starts at 1.0 (e.g., 1 USDC), and grows steadily with yield.

Daily Accrual

  • NAV/share is updated continuously as instruments accrue yield.

  • Investors see the token value rise daily, even if T-bills only mature at 90 or 180 days.

  • This ensures smooth and transparent yield accrual, without sudden jumps at maturity.

Entry and Exit

  • Deposits: New investors mint tokens at the current NAV/share.

  • Withdrawals: Redeeming investors burn tokens and receive cash at the current NAV/share.

This guarantees fair entry and exit — everyone is treated equally based on real-time pool value.

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