Unpacking Our Protocol, TGE, and Whitelist Process

Let’s strip it down and start from square one…

Liquidity is the Achilles’ heel of decentralized stablecoins. Unlike centralized giants like USDT or USDC, decentralized stables often struggle with thin liquidity, leading to slippage and clunky swaps.

Stout is here to flip the script.

In this breakdown, we’ll walk you through how our protocol works, what’s cooking with our Token Generation Event (TGE), and how early supporters can snag a spot on the whitelist.

The Protocol

Stout is a Collateralized Debt Position (CDP) protocol — with a sharp twist. Our stablecoin, DUSX, holds a 1:1 peg to the US dollar, backed by a built-in Peg Stability Module (PSM) for solid stability and seamless efficiency.

The protocol runs in two modes: healthy or unhealthy. When it’s healthy, DUSX loans come with a flat 5% interest rate (1.25% for veSTTX), giving borrowers predictable costs without the guesswork.

But there’s more. Stout has an advanced liquidation mechanism that lets you borrow more against your collateral than most competitors. Bigger loans, less hassle.

And then there’s our secret weapon: STTX.

STTX is the utility token that turns Stout into a self-sustaining powerhouse. It kickstarts DUSX liquidity and comes with a time-based deflationary mechanism that lifts its floor price over time.

Want more? Lock it as veSTTX to use as premium collateral for DUSX loans or to have a say in governance.

Here’s where the money flows: 100% of Stout’s revenue goes to token holders.

• 75% to stDUSX holders (staked DUSX with a quick 15-minute unbonding period).

• 25% to the STTX Floor Contract, boosting its value.

One protocol, built for the long run.

Our Fair Launch Model

We’re all about keeping it fair and open for our Token Generation Event (TGE). No tricks, no favorites — just equal shots for everyone:

• No airdrops.

• No private sales.

• No influencer handouts.

• No team stash of tokens.

Every STTX token comes straight from the Minter Contract. That’s our compromise for a truly fair TGE.

How It Works

Our TGE doubles as a Liquidity Generation Event (LGE). Here’s the breakdown:

Minting STTX

Users can mint STTX with USDC. Each transaction caps at 0.25% of the max supply, meaning it’ll take at least 400 transactions to mint the full batch. Fair access, no whales hogging it all.

Liquidity Flow

90% of the funds head straight to the Peg Stability Module (PSM), which mints DUSX and parks it in the Floor Contract. Here’s what that does:

• Sets up plenty of starting liquidity for DUSX, so swaps with USDC run smooth.

• Gives STTX a strong initial floor price — and peace of mind for holders, since they can burn their STTX anytime to cash out DUSX at that floor price, keeping the max drawdown tiny.

A clean system, built for fairness and stability.

Tokenomics [STTX]

Here’s the rundown on how STTX is built:

• Max Supply: 73,146,000,000

• Distribution: 100% through minting (fair launch, no shortcuts)

• Burn Mechanism: Every 21 minutes, 0.21% of the supply gets torched for good. This applies to all wallets — except a few safe addresses we’ll explain later.

Minting Dynamics

As we mentioned, you can mint STTX using USDC. The price shifts as the mint progresses — here’s how it breaks down:

• 0% to 20% → $1 gets you 4,380 STTX ｜1 STTX ≈ $0.00022831

• 20% to 40% → $1 gets you 4,175 STTX ｜1 STTX ≈ $0.00023952

• 40% to 100% → $1 gets you 4,008 STTX ｜1 STTX ≈ $0.00024950

The Finish Line

The mint wraps up with STTX hitting a Fully Diluted Value of $18,250,000 and a Floor Price of $0.00021894. No waiting around — minting is instant, with no lock-up. Your STTX lands in your wallet, ready to trade, right away.

Heads up: holding STTX in your wallet means it’s subject to the time-based burn. Every 21 minutes, a little chunk — 0.21% — gets shaved off.

Safe Addresses: Who Skips the Burn?

At launch, only two spots dodge the STTX burn:

• The liquidity contract, keeping the market running smooth.

• The veSTTX contract (can be used as collateral for DUSX or to vote on governance).

Leveling Up with veSTTX

With Stout, veSTTX is your key to governance. You get it by locking STTX at a 1:1 rate. But forget rigid time-lockers — veSTTX keeps things flexible.

Unlocking Mechanism

• No set lock period: your STTX stays locked until you say otherwise.

• Hit unlock, and a 7-day countdown kicks off.

• After that, you’ve got 21 hours to pull your STTX out.

• Miss the window? It locks back up, and you have to start over.

Simple, but keeps you on your toes.

Using veSTTX for Borrowing

veSTTX isn’t just for calling shots — it’s a borrowing beast too:

• Use it as collateral to borrow DUSX at a massive 98% Loan-to-Value (LTV) ratio.

• Since veSTTX tracks the same floor price as STTX, liquidation only hits if your debt grows from interest.

Whitelist Process

Early backers of the Stout Protocol can lock in a whitelist spot, scoring a 24-hour head start before the public mint opens up.

This gives you first dibs on minting STTX at a better rate, before the crowd jumps in.

How to Get Whitelisted

It’s a breeze — just do this:

• Join our Telegram crew: https://t.me/stout_fi

• Follow us on 𝕏: https://x.com/stout_fi

• Retweet our pinned post with a comment (quote tweet).

• Fill out this form with your Telegram username, retweet link, and Sonic wallet address:

That’s it — you’re set.

Conclusion

We’re thrilled to roll with the Sonic ecosystem — the only blockchain truly flipping the script. Together, Sonic and Stout are here to crank DeFi up a notch.

Launch is coming — don’t sleep on your shot to join the ride!

Risk Considerations

Security is our utmost priority. To ensure reliability, our protocol underwent rigorous peer reviews conducted by solidity developers. While we continuously test and improve our system to minimize risks, it is important to exercise caution due to the potential for smart contract bugs and exploits. Users are advised to remain vigilant and mindful of these risks. Please note that our protocol is currently in the alpha stage and has not yet undergone a formal audit. However, we are fully committed to providing a secure experience and are actively working towards conducting audits to enhance safety. It is crucial to understand that if the value of your vault's collateral falls below the liquidation threshold, a third party has the authority to pay off your debt by seizing and selling your collateral. Additionally, they may impose a liquidation fee as part of the process.

Legal Disclaimers

The forward-looking statements in this announcement are subject to assumptions, risks, and uncertainties that may change over time. These factors could potentially lead to different results and developments than those anticipated by Stout Labs. Even if our expected results are achieved, they may not deliver all the anticipated benefits mentioned in this announcement. We retain the right to modify the plans, expectations, and intentions stated herein at any time and for any reason, at our sole discretion. We are under no obligation to publicly update or revise any forward-looking statement, whether due to new information, future developments, or otherwise. Please note that this announcement does NOT provide legal, financial, or investment advice. We recommend that you do not rely on this announcement for making any financial or other important decisions.