Rewards
Yield with its working shown.
If a product cannot explain where the return comes from, the return is coming from you. Here is the whole mechanism.
- 01
You hold
Balance sits in your own wallet. There is no staking step, no wrapper token, and nothing to claim on a schedule.
- 02
It allocates
Reserve above the redemption floor is routed across short-dated instruments and over-collateralised lending, weighted by a published policy.
- 03
It accrues
Rewards accrue to the balance continuously. Your number goes up; the peg does not move.
- 04
You leave whenever
Redeem at par, in full, without notice. Accrued rewards settle with the redemption in the same transaction.
The catch
Rewards are variable. When short rates fall, the reward falls with them, and Halo does not smooth the curve to make a chart look better.
The redemption floor is enforced before allocation, which means the ceiling on yield is lower here than on products that treat liquidity as an afterthought. That is the trade, stated plainly.