🎏Elastic Supply

anS works similarly to how interest accrues in a bank account. The dollar’s value doesn’t change, but your balance increases as interest is earned.

The number of anS tokens in your wallet grows over time updating each holder's wallet balance to reflect the yield earned by the protocol.

This mechanism draws inspiration from Ampleforth’s approach but includes several key differences:

• anS is fully backed by S: This eliminates the challenge of maintaining its peg. The ease of minting and redeeming anS allows arbitrageurs to help keep the peg stable. anS can always be redeemed for an equivalent amount of S collateral.

• Rebasing is only upward: The protocol increases supply only to reflect gains from the underlying yield generated by validator staking. Your principal remains safe as long as this strategy functions properly.

• Real-time updates: Unlike Ampleforth, which rebases once daily, anS supplies adjust continuously as yield is earned. Rebases occur automatically during user interactions with anS contracts, with at least one rebase per day.