Playing on Tesoro
How Tesoro works
From a Position to an Advance, a Match and Redeem.
01PositionLock a staking token. The Principal is never played.
02AdvanceReceive the projected yield, upfront.
03GemasWorth $0.01 each when issued.
04MatchEnter a head-to-head game. Winner takes the Pot.
05RedeemWon Gemas turn into the Source asset as yield lands.
Five steps
- Open a Position
Lock a staking token in your Wallet. Its Principal is locked and never played.
- Take an Advance
Pick a Horizon of 1 to 12 months. You receive 100% of the Position's projected yield over it, upfront.
- Hold Gemas
The Advance arrives as Gemas, worth $0.01 each at the moment they are issued.
- Play Matches
Enter 500, 1,000 or 2,500 Gemas in a head-to-head game. The winner takes the Pot minus Fees.
- Repay and Redeem
Your Position's yield repays its Debt on its own. Gemas you win turn into their Source asset as the loser's yield lands.
- What you have at the end
Your Principal back after Unlock, plus whatever you won and redeemed. Matches only ever risk the Gemas you enter.
A worked example
Say you lock 10 simSOL Simulated at 7% a year and pick a 3 month Horizon. The price used here, $100 a SOL, is only for the arithmetic.
| Step | Working | Result |
|---|---|---|
| Projected yield | 10 × 7% × 3 ÷ 12 | 0.175 SOL |
| Worth at issuance | 0.175 × $100 | $17.50 |
| Gemas issued | $17.50 ÷ $0.01 | 1,750 Gemas |
| Debt | all of the Advance | 1,750 Gemas |
After that the dollar price is never used again. Your Debt is fixed in the Position's own asset, so a later price move changes neither the Debt nor what a Gema redeems for.
With the simulated clock, 3 months of yield arrive in about 30 minutes and the Debt falls to zero on its own. With real staking yield it would take about as long as the Horizon you chose.
What never happens
- Principal is never entered into a Match.
- Principal never pays Debt. Adding more to a Position does not repay it either.
- Nothing is charged on Principal, on an Advance or on Redeem. Tesoro's fees are taken only from Matches (see Fees).
- Tesoro does not lend you money against your Principal. An Advance is your own projected yield, paid early.
Why only head-to-head games
Gemas are claims on yield that has not arrived yet. In a head-to-head Match the person paid is the winner, who can wait: they receive the loser's Gemas and redeem them as that yield lands. In a shop, the seller would need to be paid today, and someone would have to lend against your future yield. Tesoro does not do that, so Gemas are spent only on contests between Players.