# Yield-bearing stable receipt tokens (Deep Dive)

This page explains **yield-bearing stable receipt tokens** (sometimes called *vault shares*): what they are, how they accrue yield, and what risks matter when they are used inside CDP flows (e.g., as Trove collateral via a wrapper).

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**Not investment advice** — This page explains mechanics and risks. It does not recommend any product or strategy.
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## At a glance

* A “yield-bearing stable receipt token” usually represents a **share** of a vault/portfolio that holds stablecoins and strategies.
* Your **token balance can stay constant**, while the **value per share** changes over time.
* If such a token is used as CDP collateral, your collateral value depends on **(1) share price** and **(2) underlying stable price / liquidity**.
* Some protocols enforce **cooldowns** or delayed withdrawals; that can matter under liquidation pressure.

## Core model: shares × price-per-share

Many receipt tokens are designed so that:

* your wallet balance is in **shares** (an ERC‑20 amount), and
* the protocol exposes an exchange rate: **assets per share** (or “price per share”).

The value is conceptually:

$$
\text{Value} \approx \text{Shares} \times \text{PricePerShare}
$$

### Example (illustrative)

Assume:

* you hold `1,000` shares
* price-per-share moves from `1.00` → `1.03` (in USDT terms)

Then your wallet still shows `1,000` shares, but the redeemable value may move from \~`1,000` USDT to \~`1,030` USDT (subject to protocol rules, fees, and liquidity constraints).

{% hint style="warning" %}
**Not all receipt tokens are the same** — Some are ERC‑4626 vault shares, some are custom vault shares, and some are wrappers around vault shares. Always confirm which “exchange rate” applies.
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## Lifecycle: mint → hold/use → redeem

At a high level:

1. **Mint**: you deposit a base stablecoin (e.g., USDT) and receive shares.
2. **Hold / use**: you hold shares (value can accrue) or use them in other DeFi contexts.
3. **Redeem**: you return shares and receive the underlying stablecoin (subject to rules).

Some protocols add additional policy layers:

* cooldown windows
* loss limits
* strategy allowlists
* cross-chain accounting (if the portfolio deploys remotely)

## What changes when used as CDP collateral

If a Trove uses a yield-bearing stable receipt token as collateral, your collateral value is no longer “just stablecoin price”.

You often have at least two moving parts:

1. **Share price (assets per share)**: may go up (yield) or down (loss events, fees, adverse strategy outcomes).
2. **Exit liquidity**: how quickly/cheaply you can convert shares back into the base stablecoin (DEX liquidity, redemption queues, cooldowns, etc.).

### Simple CR example (illustrative)

Assume:

* collateral is `1,000` shares
* price-per-share is `1.03` (in USDT terms)
* USDT market price is `$1.00`

Then collateral value is \~`$1,030`.

If the underlying stable trades at `$0.97` (stress scenario), the same shares could be worth closer to:

* `1,000 × 1.03 × 0.97 ≈ $999.1` (ignoring fees and liquidity impact)

So even if share price is stable, **underlying stablecoin risk** can still affect the collateral value.

## Practical checks (users and integrators)

* Identify what the token represents: stablecoin, vault shares, or a wrapper around shares.
* Confirm how the protocol exposes exchange rates (e.g., `previewRedeem`, `assetsPerShare`, or a custom share-price function).
* Check exit constraints: cooldowns, delayed claims, redemption queues, or DEX liquidity depth.
* Treat this as **external protocol dependency risk**: smart contract risk, oracle risk, and stablecoin risk can all be inherited into your Trove.

## Where this appears in Hann Finance

Hann Finance can be configured with a collateral branch and zapper for a **SuperEarn USDT receipt / yield token wrapper** (if enabled in the deployment).

* User view: it can look like “a USDT-like token that accrues yield over time”.
* Protocol view: it is **not the same** as holding USDT, because the share price and exit constraints can differ.

Related:

* [Zapper Guide](https://hann-finance.gitbook.io/hann-finance/protocol/zapper)
* [Technical Overview](https://hann-finance.gitbook.io/hann-finance/developers/technical-overview)

## Next reads

* CDP math refresher: [CDP Safety Deep Dive](https://hann-finance.gitbook.io/hann-finance/resources/deep-dives/cdp-safety)
* Liquidation + Earn mechanics: [Liquidations & Earn Deep Dive](https://hann-finance.gitbook.io/hann-finance/resources/deep-dives/liquidations-and-earn)
* Risk framing: [Risk Disclosure](https://hann-finance.gitbook.io/hann-finance/risks/risk-disclosure)