sToken

Mint

The generation of sTokens is entirely determined by the number of NFTs deposited into the Scattering protocol. Whenever an NFT is deposited into the Scattering protocol, 10K sTokens are generated.

The token standard for sTokens is ERC-20.

Value

The value of sTokens is anchored by the floor price of the corresponding collection. Assuming the current floor price of a Smol Brain is 600MAGIC, if user Alex deposits one Smol Brain into the Scattering protocol, they will receive 10K sSMOL tokens and 1 Key.

So, the value of 10K sSMOL tokens is 600 $MAGIC, and the current intrinsic value of one sSMOL is 600 $MAGIC/10000 = 0.06 $MAGIC.

When a user holds 100 sSMOL tokens, it means they own 1% of the floor price of one Smol Brain.

If the future floor price of Smol Brain NFTs on the Trove Marketplace changes, the anchored value of sSMOL tokens will also change accordingly.

Trade

Scattering will create liquidity for each sToken on Uniswap V3 Arbitrum. Therefore, users can trade sTokens in two ways:

1. Directly access the Uniswap V3 interface to trade sTokens.

2. Use Scattering's Trade interface to trade sTokens.

Burn

Users can choose to redeem one NFT from the Scattering protocol by paying 10K sTokens and 1 Key. After the redemption is complete, the corresponding sTokens will be destroyed by the protocol.