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datTokens work similarly to DAT companies such as MicroStrategy, but they’re on-chain, fair, and have built-in price protection. Each datToken has redeemable value from its underlying reserve, and offers structural price asymmetry against its reserve asset. datTokens also offer inerest-free loans with no liquidation risk.

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How datTokens Work

datTokens turn any Solana token into a reserve asset, allowing anyone to become the Michael Saylor of any token. Each datToken is backed by a single-asset reserve. datSOL → Backed by SOL
datBONK → Backed by BONK
datALP → Backed by ALP Each datToken offers structural price asymmetry against its reserve asset:
  • Magnified upside potential
  • Mathematically limited downside
datTokens are minted in exchange for their reserve asset (e.g., datSOL is minted with SOL). Those reserve assest are deposited into a protocol-owned reserve which fulfills datToken redemptions. datTokens are priced against their reserve asset with constant liquidity provided by the Assured Value Machine (AVM).
  • Price rises when people buy (mint).
  • Price falls when people sell (redeem), but never below the floor price.

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Rising Floor Price

A datToken’s floor price (denominated in the reserve asset) is a mathematically assured minimum that’s always redeemable. The protocol enforces the floor by using its reserves to provide an on-chain bid that’s capable of buying every datToken in supply. The floor price can rise but never fall. Rising Floor With Labels1 Gi There are two ways the floor can rise:
  1. Rebalancing When there is sufficient liquidity above the floor price, the AVM adjusts the price curve, reallocating some liquidity to the floor, raising it higher.
  2. Fees A potion of fees from every buy, sell and borrow within any given market, is directed to the floor reserves, raising the floor price.

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Non-liquidating Loans

Samsara offers interest-free loans with no liquidation risk, using any datToken as collateral. deposit datToken → borrow the reserve asset up to the floor value of your collateral. Non-liquidating loans are made possible by the floor price, enabling flexible strategies for holders, including non-liquidating leverage.

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Governance & Fees

Each datToken market has various parameters and fees that are governed by prANA holders. All parameters shift incrementally on a weekly cadence. The governable parameters for Samsara markets are:
  • Buy Fee
  • Sell Fee
  • Borrow Fee
  • Price Curve Sensitivity
  • Liquidity Buffer
  • Fee split between prANA and floor
Learn more about governance.