# ➤ STRAT Holders

You hold (or want to hold) STRAT because you want leveraged ETH exposure that compounds over time and cannot be liquidated. This guide covers what you need to know.

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## What STRAT Gives You

STRAT is the protocol's equity token. Each STRAT represents a claim on the treasury's ETH holdings. Because the treasury is funded by zero-interest convertible debt, your claim is inherently leveraged — the treasury holds more ETH than the STRAT supply alone would imply.

The key metric: **ETH per STRAT (EPS)** — the ratio of total treasury ETH to total STRAT supply. As the treasury grows faster than STRAT dilution, EPS rises.

STRAT cannot be liquidated because the leverage comes from the capital structure, not from borrowed margin.

**Deep dive:** [STRAT Economics](https://docs.ethstrat.xyz/tokenomics/strat-economics)

## How to Earn Yield

Stake STRAT to earn yield from protocol revenue.

1. **Stake** STRAT into the StakedStrat contract — you receive sSTRAT-v2 (non-transferable receipt)
2. **Earn** ETH
3. **Claim** accrued rewards at any time
4. **Unstake** at any time — no lock period, pending rewards auto-claimed

**Revenue sources today:** Staking yield.\
**Coming soon:** Treasury lending interest flowing directly to StakedStrat on-chain.

**Deep dive:** [STRAT Staking](https://docs.ethstrat.xyz/core-mechanics/strat-staking)

## How STRAT Gains Value

Three mechanisms grow EPS over time:

1. **Bonds** — each new bond adds ETH to the treasury. If EPS is maintained or grows, existing holders benefit
2. **Staking yield** — lending interest and protocol revenue flow to stakers as esETH
3. **Favorable debt reduction** — if the protocol retires CDT below face value, the treasury-to-debt ratio improves for remaining holders

**Deep dive:** [MSTR Comparison](https://docs.ethstrat.xyz/tokenomics/mstr-comparison)

## Optional: Borrow Against Your Position

Once Treasury Lending launches (Roadmap: Q2 2026), you can borrow esETH against your STRAT + CDT at fixed rates with no liquidation during the loan term. This lets you access ETH liquidity without selling STRAT.

**Deep dive:** [Treasury Lending](https://docs.ethstrat.xyz/core-mechanics/treasury-lending)

## How STRAT Compares

Wondering how STRAT stacks up against holding stETH, rETH, or cbETH directly?

**Deep dive:** [LST Comparison](https://docs.ethstrat.xyz/tokenomics/lst-comparison)

## Key Risks

* Treasury leverage means STRAT amplifies both gains and losses in ETH terms
* EPS can decrease if debt issuance outpaces treasury growth
* Staking yield depends on protocol revenue (lending activity, ESPN performance)
* Smart contract risk across esETH, StakedStrat, and the core protocol

**Full breakdown:** [Risks](https://docs.ethstrat.xyz/security-and-risk/risks)

## Your Reading Path

1. [What is ETH Strategy](https://docs.ethstrat.xyz/introduction/what-is-eth-strategy) — the problem, insight, and solution
2. [Protocol Overview](https://docs.ethstrat.xyz/introduction/protocol-overview) — how esETH, STRAT, and CDT fit together
3. [STRAT Economics](https://docs.ethstrat.xyz/tokenomics/strat-economics) — revenue model and value accrual
4. [STRAT Staking](https://docs.ethstrat.xyz/core-mechanics/strat-staking) — staking mechanics and 7-day streaming
5. [Risks](https://docs.ethstrat.xyz/security-and-risk/risks) — what can go wrong and how it's mitigated
6. [Contracts](https://docs.ethstrat.xyz/references/contracts) — deployed addresses