ATM Offerings

If ETHSR trades at a premium to NAV, new tokens are sold at the market price. Proceeds are used to acquire more ETH.

Mechanism

• New ETHSR tokens are auctioned off onchain. The auction avoids market impact by not swapping ETHSR for ETH directly through liquidity pools. It is up to governance to set the auction start price and end price.

• ETHSR is auctioned for ETH, which will then be held by the DAO.

Benefits:

• Limited market impact due to the auction mechanic.

• Prevents runaway premiums by issuing tokens only when ETHSR is overvalued.

• Scales the ETH pool efficiently, increasing NAV for all holders.