Appendix
R Value Calculation Formula for STONEUSD / STONEBTC
To ensure transparency and consistency in yield distribution, NAV calculation, and locking cycles, the StakeStone Crypto-native Neo Bank adopts the following formula to calculate the R Value (Exchange Rate Ratio), which measures the periodic NAV change of yield-bearing tokens such as STONEUSD and STONEBTC:
user_deposit
The user’s total cumulative deposit amount (gross inflow), retrieved in real time from onchain contract data.
user_withdraw
The user’s total cumulative withdrawal amount (gross outflow), retrieved in real time from onchain contract data.
user_profit
The user’s accrued yield, calculated by the system based on the results of strategy execution (including PnL, fees, and revenue sharing) and allocated to the user’s account.
lp_amount
The total issued supply of STONEUSD (or other yield-bearing tokens), representing the total number of circulating yield tokens currently in the system.
lp_locked
The amount of STONEUSD in a locked state during the settlement process. Every Thursday (UTC), when user withdrawal requests are processed, the corresponding tokens are marked as locked.
lp_locked_value
The value within the locked pool, calculated as lp_locked × R (NAV at the time of locking). This value records the conversion ratio between STONEUSD and stablecoin for the given cycle. The system updates this figure every Thursday (UTC) and displays the current exchange rate on the frontend.
Parameter Definition & Framework
The R Value reflects the periodic NAV fluctuation of yield-bearing tokens and serves as the core variable for yield distribution and redemption settlement.
The calculation logic is executed automatically each settlement cycle (typically once per week), ensuring that all user assets are settled accurately based on the latest exchange rate.
If a locking operation occurs during a cycle, the corresponding tokens and values are temporarily excluded from the denominator to prevent short-term liquidity fluctuations from distorting NAV.
All parameters are sourced from onchain verifiable data, ensuring that the entire computation process remains transparent, auditable, and tamper-proof.
Snapshot & NAV Update Mechanism
StakeStone performs its Snapshot & Settlement Cycle automatically every Thursday at 00:00 UTC, following this process:
Aggregate all user deposit, withdrawal, and yield records for the current cycle;
Compute the new R Value;
Update the Exchange Rate for yield-bearing tokens such as STONEUSD and STONEBTC;
Publish an onchain snapshot and synchronize the results to the user interface.
This mechanism ensures fair yield distribution, transparent NAV confirmation, and cross-layer data consistency within each cycle, while also providing a unified NAV reference across the custody, settlement, and contract layers.
Swap & Burn
The Swap & Burn mechanism is one of the core components of the StakeStone protocol, designed to achieve STO value capture and market equilibrium.By allowing users to exchange STO tokens for diversified assets held in the Treasury while burning a proportional amount of STO during each swap, the system establishes a self-regulating value model that provides both intrinsic backing and a market floor for the token.
Operational Mechanism
Holding STO tokens represents a potential claim on a proportional share of the Treasury’s assets. As the protocol grows and accumulates revenue, the Treasury expands with additional blue-chip crypto assets.When the implied asset value per STO in the Treasury exceeds the market price of STO, an arbitrage opportunity arises. Users can then restore market equilibrium through the following process:
Buy STO on the open market: When the STO market price falls below its implied Treasury value, users can purchase STO at a discount in secondary markets.
Execute Swap & Burn: Users submit their STO to the protocol for a swap. The system calculates their share of Treasury assets (e.g., ETH, BTC, or stablecoins) based on the Treasury’s NAV, and permanently burns the corresponding amount of STO after the swap.
Realize profit and value convergence: Users receive Treasury assets, while the STO supply decreases, driving the token’s market price back toward its intrinsic value range.
Economic & Market Impact
Within StakeStone’s tokenomics, the Swap & Burn mechanism performs three key functions:
Deflationary Pressure: Each treasury swap permanently burns STO, reducing total supply and introducing a built-in deflationary effect.
Value Realization: Users can convert STO into Treasury assets, creating a verifiable asset-backed intrinsic value for STO.
Soft Value Floor: The arbitrage process establishes a natural price floor, as market participants continuously rebalance STO’s price relative to Treasury NAV.
Self-Regulation & Sustainability
The Swap & Burn design ensures that arbitrage activity not only benefits participants but also stabilizes STO price. Its key characteristics include:
Price Discovery: Market behavior dynamically corrects token valuation, keeping STO prices anchored near Treasury NAV.
Organic Equilibrium: Swap activity maintains a dynamic balance between Treasury growth and STO circulation.
Sustainable Value Support: As the Treasury continues to accumulate assets, STO’s intrinsic value and scarcity strengthen in tandem, reinforcing STO’s long-term stability.
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