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Premium / Discount

The gap between the market price of vPILE and its claim value.

ts
premium = (marketPrice / claimValue) - 1

A premium means the market pays more than the Stockpile currently backs — usually a bet on future accumulation. A discount means the market pays less than the assets already held, which is the condition redemption exists to correct.

Why a discount should not persist

  1. Buy vPILE below claim value
  2. Burn it for the underlying legs
  3. The legs are worth more than the purchase price, less the redemption fee
  4. Repeating this buys supply and closes the gap