Token Price

Price Reporting

USYC price is reported to the USYC Oracle, a Chainlink-style smart contract, once per business day after the Prime Brokerage has reported the prior day's activity.

USYC price report typically occurs at 6:45 am ET (subject to delays due to operational or technical reasons). The price is reflected on-chain once all subscriptions, redemptions, and accrued interest are reconciled.

Token Price Calculation

USYC price is calculated based on the Net Asset Value (NAV) of the Prime Brokerage account divided by the total supply of USYC on issue:

As new investors enter the fund, they buy in at the current price per share.

Effective Redemption Price

Redemptions always occur at the current USYC price, and Subscriptions occur at the Effective Redemption Price. This aligns subscriptions with whether or not the capital was able to be included in earning yield for that business day. For example:

Between the USYC price report and 3:30 pm ET, the effective redemption price is equal to the current USYC price, meaning Hashnote offers free subscription and redemption at the same price.
After 3:30 pm ET until the next price report, the effective redemption price is a forecast of the next price report, meaning redemptions occur at a different price than subscriptions.

Trade Activity

Trade activity occurs Monday to Friday, excluding US Federal Holidays. The results of the trade activity will reflect the next morning. For example:

Monday --- trade takes place and accrues interest overnight
Tuesday --- trade activity is reconciled and reported on-chain in the morning

Interest Calculation

The USYC Oracle provides principal and interest at each price update to compute the current APR.

The principal and interest can be used to compute the overnight interest rate. When forecasting interest, it is important to account for interest that accrues over multiple days (e.g. a Friday repo generates a total of 3 days of interest).