Utility Tokens: The Fuel of Solidus Synth

Solidus utility tokens lie at the heart of the ecosystem's value creation and capital efficiency. Designed to capture and redistribute real yield, these tokens serve as both governance instruments and yield-bearing assets. Utility tokens are also a core component in the minting of fractional synthetic assets—users must utilize them as part of the collateral mechanism to mint sSynths.

This integration ensures that utility tokens are not only valuable for reward accrual and governance, but also essential to the underlying mechanics of synthetic asset creation. As rewards from rehypothecated yield farming flow back to lockers and stakers, demand for utility tokens grows, fueling a self-reinforcing flywheel that drives deeper liquidity, expanded synthetic minting capacity, and a more robust overall ecosystem.

Ava Utility Token for Avalanche

  • Used for minting synthetic Avax tokens, liquidity reward token for native LPs, real yield earning for stakers & governance

  • Total Supply: 50,000,000

    • 30,000,000 for LP incetives over two years

    • 10,000,000 Treasury Fund

    • 10,000,000 Community incentives and airdrop

📌 Each utility token is exclusive to its respective chain and does not operate cross-chain. 📌 Contract addresses will be announced upon deployment.

💰 Staking & Locking Benefits

Staking and locking Solidus utility tokens unlocks a range of powerful benefits for active participants.

  • Protocol Revenue Share – Earn a portion of the fees generated from synthetic asset minting, redemptions, rehypothecated farming yield and other ecosystem activities.

  • Fee Rewards – Receive yield distributions in multiple tokens including native chain assets (e.g. AVAX) as well as non-native assets accumulated through partner integrations and DEX reward programs.

  • Essential for Minting – Solidus utility tokens also play a critical role as collateral in minting fractional synthetic assets, tying their value directly to protocol utility and demand.

  • Governance Power – Gain voting rights and help shape the future of the protocol by participating in key governance decisions.

📌 With a fixed supply model and a sustainable emissions schedule, staking and locking not only secure the protocol but also align long-term incentives with ecosystem growth—rewarding committed users while reinforcing deflationary pressure on the token supply.

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