Parachain Auction Tokens (or pAT) are the receipt token minted for participation in our parachain vault strategy, representing a user’s stake in the vault. Whenever someone deposits in our vault, they get back pAT in an amount depending upon their investment and strategy type.
If we take Harvest stablecoins strategies as an example, whenever you invest Token (Dai/Usdc/Usdt), you’ll get back fToken (fDai/fUsdc/fUsdt). The value of fToken is usually a bit lower than the amount of token you invested.
For example, investing $100 in DAI in the Harvest DAI strategy will get you around 95 fDai, and the amount of pAT you’ll receive is equal to the amount of fDai, which is 95 in this case.
Each strategy has its own pAT token, similar to how an AMM transfers LP tokens once you add liquidity.
One of the use cases for pAT is to mint EQLC (our stablecoin). In DeFi, when you make an investment, your funds are locked until you withdraw, so we’ve come up with the idea to mint EQLC and use that as an alternative to your initial funds.
A future usage of pAT tokens will also be to obtain Composable Tokens by staking them into a vault-type contract, which will be available after TGE.