The receipt
Verniers
A vernier is the sliding auxiliary scale that lets you read a coarse instrument finely: it subdivides one division of the arc into parts you can actually name. That is what a share token does to a position, and it is why this one is named after it rather than after a yield.
What it is
- ✓A plain ERC-20, eighteen decimals, ticker sx-<TICKER>.
- ✓No hook, no whitelist, no transfer tax. Any wallet or market already understands it.
- ✓A claim on a fraction of what the Arc holds, and on nothing else.
- ✓Not a claim on the accrued Dip, which is held outside every holder's share.
What it is worth
Two answers, and the difference is the whole product.
In kind: exactly total × s/S. No price is involved, so there is nothing
to be wrong about, and the payout does not move when the pool does.
In USDG: the same claim, bought from you at the worse of the Arc's last two observations. That number is an observation and the page says so.
The honest part
A tradeable claim is a claim somebody else has to price
A share token being liquid is a property of the token. Whether the position can leave at a price near the mark is a property of the market it sits in, and that is somebody else's decision.
Which is why the two exits exist and why the in-kind one is first. If no venue will take your Vernier at a price you like, the contract still hands you your fraction of what it holds, in the same block, at a number that involved no observation at all. That is the floor under the claim, and it is the only part of it this repository can promise.