What is a Position?
Quick Definition
A position refers to the amount of a particular asset that an investor or holder currently owns.
Full Definition
In traditional finance, the term "position" describes an investor's holdings. Long positions (owning an asset), short positions (betting against an asset), open or closed positions, and so on. In crypto and stablecoin contexts, the term is generally used in the simpler sense: the amount of a particular token or asset a holder owns.
The size of a position determines a holder's exposure to the performance of an asset. A larger position means greater exposure, while a smaller position means less. For stablecoins, where price is designed to stay stable, the question isn't usually about price exposure, it's about the size of the holding and the returns associated with it.
How positions work with Steady
Holding STDY creates a Steady position. The size of that position changes over time through two mechanisms: through any transfers or transactions you choose to make, and through the rebase mechanism, which grows your position automatically to reflect the performance of our underlying reserve assets. Up to 95% of that performance flows through to your position, with no action required. This is what we mean when we say that "your position grows in your wallet."
Related Terms
Holder
ReadA holder is anyone who owns a particular cryptocurrency or token.
Rebase
ReadA rebase is an automatic adjustment to the total supply of a token, where every holder's balance changes proportionally to reflect a new total supply.
Yield
ReadYield refers to the income or return generated from an asset over time, usually expressed as a percentage of the asset's value.
Other Glossary Items
Learn about common and essential terms related to Steady and other stablecoin protocols.
Algorithmic Stablecoin
ReadAn algorithmic stablecoin attempts to maintain its value through automated rules that adjust token supply based on market demand, rather than holding equivalent reserve assets.
AML
ReadAML (Anti-Money Laundering) refers to the laws, regulations, and procedures designed to prevent the use of financial systems for laundering the proceeds of crime.
APY
ReadAPY, or Annual Percentage Yield, is the standardized rate of return an asset generates over a year, including the effect of compounding.
Arbitrum
ReadArbitrum is a Layer 2 blockchain network built on top of Ethereum, designed to offer faster and cheaper transactions while inheriting Ethereum's security and infrastructure.
Asset Backing
ReadAsset backing refers to the real-world or on-chain assets held by the issuer to support the value of every token in circulation.
Asset Locking
ReadAsset locking refers to restricting access to funds for a defined period or condition, during which they cannot be transferred or used.
Asset Segregation
ReadAsset segregation is the practice of keeping client or backing assets separate from the issuer's operational funds, protecting them from the issuer's other obligations.
Audit
ReadAn audit is an independent examination of a protocol's code, reserves, or operations by qualified third parties to verify accuracy and compliance with stated claims.
Backing
ReadBacking refers to the assets or mechanisms that support a stablecoin's value and help it maintain its intended reference value.
Blockchain Network
ReadA blockchain network is the system of connected participants and infrastructure that validates, records, and maintains data on a specific blockchain.
Blockchain
ReadA blockchain is a distributed digital ledger that records transactions across a network of computers in a secure, transparent, and tamper-resistant way.
Bridge
ReadA bridge is a mechanism that enables the transfer of assets or data between different blockchain networks.
Clarity Act
ReadThe Clarity Act is a proposed US legislative framework intended to clarify the regulatory treatment of digital assets, defining when they should be treated as securities versus commodities.
Collateralization / Over-collateralization
ReadCollateralization refers to the ratio between the value of assets held in reserve and the value of tokens issued. Over-collateralization means holding more in reserves than the value of tokens issued.
Composability
ReadComposability refers to the ability of different protocols, contracts, and tokens on a blockchain to interact and combine with each other seamlessly.
LearnMoreAboutSteady
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FAQs
Discover the basics about Steady in our frequently asked questions.
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