Earlier we touched on supply and stake being a key component of deriving value for users. The primary way for CADT users to build wealth is to stake their tokens. users stake their CADT, locking it into the ecosystem and receiving compounding rewards in sCADT (which will always be exchangeable for CADT at a 1:1 ratio) generated by bond sales. Over time, the amount of CADT owned by stakers will increase, bringing more profit and reducing exposure risk. Staking CADT becomes less risky and more profitable over time since an increasing share of CADT will protect users from negative price action, and given that the protocol ensures a rising price floor, staking for long enough will bring a userโ€™s cost basis below the intrinsic value of CADT.

This model above assumes a flat price per CADT token. The price of CADT will fluctuate, but bond sales ensure a steadily rising price floor, and so the value of staked CADT tokens will increase over the long-term.

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