srUSD’s stability does not rely on market psychology or discretionary intervention. It rests on a contract-level, autonomous, permissionless price floor — the same mechanism class as a collateralized stablecoin, not an algorithmic one.Documentation Index
Fetch the complete documentation index at: https://docs.stratareserve.co/llms.txt
Use this file to discover all available pages before exploring further.
The redemption floor
Strata maintains a USDC Redemption Pool (the Strata Redemption Mechanism, or SRM) that creates an autonomous floor at approximately $0.997 — one minus the 0.3% minimum redemption fee. This is mechanistically similar to how Liquity’s redemption creates a floor near $0.995, with one deliberate difference: the redemption pool has a finite, explicitly-sized capacity rather than drawing on all collateral.How the arbitrage loop works
Arbitrageurs buy the discount
Anyone can buy srUSD below $1 and redeem it through the pool for USDC at the
floor price, capturing the spread.
The floor is autonomous and permissionless: it is enforced by the contract,
available to anyone, and does not depend on a treasury choosing to act.
Collateral ratios
srUSD is over-collateralized, with ratios scaled to each asset’s liquidity and duration:| Asset type | Collateral ratio |
|---|---|
| Vaulted silver | 125–150% |
| Gold | 150–200% |
| Royalty streams | 500–800% |
| Private credit | 600–1000% |
Residual risk
The redemption pool is finite by design. Under extreme, sustained redemption pressure that exhausts pool capacity, the autonomous floor weakens and the peg leans more on collateral liquidation and treasury depth. Pool capacity, fees, and collateral parameters are governed by the Risk Committee and are part of the protocol’s active risk management.Governance & the Risk Committee
Who sets collateral eligibility, ratios, and redemption-pool parameters.