Pinto has a $1 value target, but does not strictly adhere to it. The protocol embraces a degree of volatility in exchange for trustlessness, capital efficiency, scalability, and dramatically enhanced robustness under adverse conditions. In practice, this means that Pinto is prone to spending long stretches of time priced between $0 and $1. These periods below the price target open up opportunities for active users to establish a position that has outsized potential in the case where Pinto grows over the long term.

If you are discovering Pinto while it is below its price target you may come across openings that seem excessive — four digit Temperatures, double Seeds for Pinto deposits, a 40% discount on the token, or something else. It is reasonable to be skeptical of these numbers. The crux of all of these opportunities, and the reason they are not immediately taken by bots, is that they are a bet that the system will be able to successfully return to its value target and that the supply of Pinto will grow in the future. There are compelling reasons to believe this will be the case, but they are outside the scope of this article. For the purposes of this article, it is only necessary to know that this belief underpins many of the opportunities outlined below.

Below are some ways a user can take advantage of Pinto being below its value target to set themselves up with an outsized position in the event of Pinto's success – in no particular order.

This is the most straight-forward way to take a bet on the future of Pinto. Generally, when Pinto is below its price target and confidence is wavering there will be insufficient demand for Soil in the Field, which translates to an increase in Temperature (interest paid on Sowing). The longer Pinto remains in this phase, the higher the Temperature will go, thus creating a larger opportunity for future yield. For example, a temperature of 500% will provide the user 6 Pods for every 1 Pinto Sown. Each Pod will then be redeemable for 1 Pinto when the token supply grows enough to pay off the existing Pod Line.

You can read more about how the Field works here.

Users who already have capital in the Pinto ecosystem via the Silo may be able to take advantage of the situation without deploying additional funds. Holders of LP deposits can convert their LP to Pinto without leaving the Silo. This allows the user to retain all of their Grown Stalk while also allowing them to capture more future value by increasing the Pinto Denominated Value of their deposit. In other words, it allows users to indirectly buy Pinto with their LP while Pinto is at a discount. Converting into Pinto while below the price target may also result in more sSeeds, which will generate more Stalk over time and result in more Pinto earned when next above the value target.

You can read more about the mechanisms underlying Converts here.

Users looking to deploy new capital but who do not want to lock their value into the Field can instead deposit directly into the Silo. This strategy is not as exciting, and often has a smaller potential reward. However, it allows for value to stay liquid. Conservative players may want to deposit LP, which will accrue Stalk slower but will experience less volatility with the Pinto price. Opportunists may instead want to deposit Pinto directly, which will allow them to capture the full value increase when Pinto returns to its price target as well as a significantly larger amount of Stalk growth (as a result of Pinto being assigned more Seeds when below the target).

You can read more about how the Silo works here.

sPinto is an ERC20 wrapper around Pinto deposits in the Silo. Holding sPinto is similar to depositing Pinto in the Silo — it offers exposure to the future movements of the Pinto price as well a share of future Silo yield. It is slightly less efficient over a long time frame, however it has the added benefit of composability in the broader DeFi ecosystem, unlocking more complex strategies.

You can read more about how sPinto works here.

• Lock a Fixed APR via Spectra

sPinto has been integrated into a Spectra market. This allows users to take a position that will pay a fixed rate of Pinto until maturity of the Position, even when Pinto is below its value target and not generating native yield.

• Borrow against sPinto

The value underlying a user’s sPinto position can be used as collateral to borrow USDC or other assets. This allows a user to get exposure to Pinto upside and yield without locking all of their capital up in the bet. Users may be subject to liquidations based on fluctuations in the Pinto price and accrued interest.

• Leverage the Price and Yield

Although leverage is not recommended, as it carries an outsized risk of liquidation, it is possible by looping through the lending markets for sPinto. This allows a users to lever up their exposure to the price of Pinto returning to the value target as well as lever up the yield when Pinto supply grows. The supply of sPinto is capped to prevent excessive leverage.

Each time Pinto returns to its price target following a stretch of time below target, it improves its lindyness (i.e. its reliability). This decreases perceived risk and naturally translates to more users being willing to deploy these strategies, thus an increase in competition. In other words, one might expect that each cycle of the system will offer less dramatic entry opportunities below the value target and therefore less price volatility.

Come seed the first Leviathan-free economy and hone your own strategy at https://pinto.money/.

Relevant Links:

Pinto App: https://pinto.money/overview

X: https://x.com/pintodotmoney

Docs: https://docs.pinto.money/

Pinto has a $1 value target, but does not strictly adhere to it. The protocol embraces a degree of volatility in exchange for trustlessness, capital efficiency, scalability, and dramatically enhanced robustness under adverse conditions. In practice, this means that Pinto is prone to spending long stretches of time priced between $0 and $1. These periods below the price target open up opportunities for active users to establish a position that has outsized potential in the case where Pinto grows over the long term.

If you are discovering Pinto while it is below its price target you may come across openings that seem excessive — four digit Temperatures, double Seeds for Pinto deposits, a 40% discount on the token, or something else. It is reasonable to be skeptical of these numbers. The crux of all of these opportunities, and the reason they are not immediately taken by bots, is that they are a bet that the system will be able to successfully return to its value target and that the supply of Pinto will grow in the future. There are compelling reasons to believe this will be the case, but they are outside the scope of this article. For the purposes of this article, it is only necessary to know that this belief underpins many of the opportunities outlined below.

Below are some ways a user can take advantage of Pinto being below its value target to set themselves up with an outsized position in the event of Pinto's success – in no particular order.

This is the most straight-forward way to take a bet on the future of Pinto. Generally, when Pinto is below its price target and confidence is wavering there will be insufficient demand for Soil in the Field, which translates to an increase in Temperature (interest paid on Sowing). The longer Pinto remains in this phase, the higher the Temperature will go, thus creating a larger opportunity for future yield. For example, a temperature of 500% will provide the user 6 Pods for every 1 Pinto Sown. Each Pod will then be redeemable for 1 Pinto when the token supply grows enough to pay off the existing Pod Line.

You can read more about how the Field works here.

Users who already have capital in the Pinto ecosystem via the Silo may be able to take advantage of the situation without deploying additional funds. Holders of LP deposits can convert their LP to Pinto without leaving the Silo. This allows the user to retain all of their Grown Stalk while also allowing them to capture more future value by increasing the Pinto Denominated Value of their deposit. In other words, it allows users to indirectly buy Pinto with their LP while Pinto is at a discount. Converting into Pinto while below the price target may also result in more sSeeds, which will generate more Stalk over time and result in more Pinto earned when next above the value target.

You can read more about the mechanisms underlying Converts here.

Users looking to deploy new capital but who do not want to lock their value into the Field can instead deposit directly into the Silo. This strategy is not as exciting, and often has a smaller potential reward. However, it allows for value to stay liquid. Conservative players may want to deposit LP, which will accrue Stalk slower but will experience less volatility with the Pinto price. Opportunists may instead want to deposit Pinto directly, which will allow them to capture the full value increase when Pinto returns to its price target as well as a significantly larger amount of Stalk growth (as a result of Pinto being assigned more Seeds when below the target).

You can read more about how the Silo works here.

sPinto is an ERC20 wrapper around Pinto deposits in the Silo. Holding sPinto is similar to depositing Pinto in the Silo — it offers exposure to the future movements of the Pinto price as well a share of future Silo yield. It is slightly less efficient over a long time frame, however it has the added benefit of composability in the broader DeFi ecosystem, unlocking more complex strategies.

You can read more about how sPinto works here.

• Lock a Fixed APR via Spectra

sPinto has been integrated into a Spectra market. This allows users to take a position that will pay a fixed rate of Pinto until maturity of the Position, even when Pinto is below its value target and not generating native yield.

• Borrow against sPinto

The value underlying a user’s sPinto position can be used as collateral to borrow USDC or other assets. This allows a user to get exposure to Pinto upside and yield without locking all of their capital up in the bet. Users may be subject to liquidations based on fluctuations in the Pinto price and accrued interest.

• Leverage the Price and Yield

Although leverage is not recommended, as it carries an outsized risk of liquidation, it is possible by looping through the lending markets for sPinto. This allows a users to lever up their exposure to the price of Pinto returning to the value target as well as lever up the yield when Pinto supply grows. The supply of sPinto is capped to prevent excessive leverage.

Each time Pinto returns to its price target following a stretch of time below target, it improves its lindyness (i.e. its reliability). This decreases perceived risk and naturally translates to more users being willing to deploy these strategies, thus an increase in competition. In other words, one might expect that each cycle of the system will offer less dramatic entry opportunities below the value target and therefore less price volatility.

Come seed the first Leviathan-free economy and hone your own strategy at https://pinto.money/.

Relevant Links:

Pinto App: https://pinto.money/overview

X: https://x.com/pintodotmoney

Docs: https://docs.pinto.money/