POLAR

POLAR is the token powering Polaris.

The protocol is built around pETH and the pAssets minted against it. Together, they provide the collateral, currencies and synthetic assets that form the foundation of the system.

Around that foundation, liquidity develops across different products, applications integrate the protocol, and users build new strategies.

POLAR is the utility token that provides the shared economic layer to support and coordinate the growth of Polaris, as it gives long-term participants a way to earn protocol-native value through sPOLAR and steer ecosystem incentives through bounded stewardship.

The Role of POLAR

POLAR is designed to support the development of the Polaris ecosystem.

For users, POLAR becomes active through sPOLAR. A user who wants long-term exposure to Polaris can acquire POLAR, stake it as sPOLAR and participate in the value generated by supported pAsset markets.

This can also matter for active Polaris users. For example, a user who mints pAssets pays interest to the relevant pAsset market. If that same user also holds sPOLAR, their share of sPOLAR distributions can offset part of the effective minting cost.

For builders, POLAR creates an alignment path. A new pAsset market or integration can build on Polaris, contribute liquidity, distribution or revenue, and seek flow support through sPOLAR stewardship.

For stewards, sPOLAR helps direct ecosystem incentives, flow recipients and other bounded parameters. It does not control the immutable core protocol, meaning sPOLAR cannot change the bonding curve, introduce new collateral, alter liquidation logic or upgrade the core contracts.

In short, POLAR connects long-term participation with the growth of the Polaris ecosystem, giving holders a role in the parts of the system that remain stewarded.

sPOLAR

The long-term utility of POLAR is expressed through sPOLAR, the staked version of POLAR.

Users receive sPOLAR by staking POLAR for a chosen period between 2 weeks and 4 years, aligning stewardship with participants who take a longer-term view of the ecosystem. In return, sPOLAR holders receive a share of the interest paid by USDp and GOLDp minters, distributed directly in USDp and GOLDp. Future pAsset markets may also choose to share revenue with sPOLAR as part of their alignment with Polaris and their case for receiving pETH flows.

sPOLAR yield comes from the interest minters pay to mint positions, so it grows with protocol activity and does not depend on new POLAR being emitted to holders, although the token can still be used to direct protocol’s growth.

Every sPOLAR position is an NFT that can be transferred or sold on the open market. The POLAR inside stays staked until the end of its term, but holders can exit by selling the position, so a staked position is never fully illiquid. Positions can also be kept at the maximum term, so their stewardship power does not decay.

With sPOLAR, long-term participants can help coordinate how the ecosystem evolves by taking part in decisions around incentive distribution, integrations and other initiatives. The protocol itself continues to operate through immutable code, while sPOLAR provides a structured stewardship layer that helps guide the development of the ecosystem.

The stewardship model and the tokenomics of POLAR are explained in the dedicated sections of the documentation.

How New POLAR Is Created

POLAR has no perpetual emissions schedule. After the initial allocation and its vesting, new POLAR only enters circulation when users convert pETH into it.

Conversions only work in one direction. The pETH used is burned, and the ETH released from the bonding curve reserve is routed back into the protocol. Since POLAR can never be converted back into pETH, no value needs to be held back for redemptions, so every conversion strengthens pETH, where it becomes part of the protocol-native yield.

The conversion mechanism and its economic design are explained in detail in the dedicated section of the documentation.