AAETHER DOCS
Mechanics

Protocol Mechanics

Aether uses AETHER, ASHARE, ABOND, SPY, and USDG.

AE

AETHER

The market token. It targets one SPY Stock Token, but it is not SPY.

AS

ASHARE

The capped share token. It earns variable AETHER emissions during expansion.

AB

ABOND

The contraction token. It is issued below target and redeemed above target when covered.

Epoch States

  • AETHER TWAP >= 1.01 * SPY target: expansion.
  • 1.00 * SPY target <= AETHER TWAP < 1.01 * SPY target: idle.
  • AETHER TWAP < 1.00 * SPY target: contraction.
  • Invalid oracle: no expansion.

Expansion

During expansion, the protocol mints capped AETHER. The default split sends 70 percent to ASHARE stakers, 20 percent to the treasury reserve sink, 5 percent to DAO reserve, 3 percent to bond reserve, and 2 percent to keeper and operations.

Contraction

During contraction, users can burn AETHER for ABOND, subject to debt caps. ABOND can redeem only after recovery and only with treasury coverage.

Oracles

Aether uses Chainlink SPY tokenized equity data and AETHER/SPY TWAP. It must never mint from a stale or invalid feed.