What SOT is

Sands of Time (SOT) is a $1 stablecoin minted against over-collateralized assets — the Maker/Liquity lineage, never algorithmic. There is no central issuer and no float of borrowed dollars: every SOT in existence is the live debt of an open vault, and every vault is backed by collateral worth more than the SOT it drew. The invariant is flat and absolute — totalSupply == Σ vault debt. Human or machine, you mint the dollar yourself; it answers to no one.

• ▸$1 unit, pinned at exactly $1 in all engine math — SOT is never oracle-priced.
• ▸Backed by real, deposited assets — WETH, wBTC, LINK, and yield-bearing mob tokens.
• ▸No ongoing interest in v1: collateral that appreciates self-repays the position.

Mint against the reservoir

Deposit collateral into a vault and draw SOT against it, so long as you stay above that collateral's minimum ratio (mcr — e.g. 150% for WETH). Each collateral is walled off in its own market with its own ratio, ceiling, and oracle; one asset's trouble never bleeds into another. Repay the SOT to free what you locked. Draw conservatively — the closer you sit to the edge, the less the ground has to move before the Cascade reaches you.

The redemption floor — why $1 holds

Anyone can always burn 1 SOT and reclaim $1 of collateral (minus a small redemption fee). This is the floor that holds the peg without a promise: if SOT trades below a dollar, buy it cheap and redeem it for a full dollar of collateral — arbitrage drags it back up. Redemptions hit the lowest-ratio vaults first, a par swap that improves the touched position rather than punishing it, so the reserve quietly de-risks itself. The floor holds for one reason only: the system is over-collateralized, so every SOT is redeemable for at least its dollar.

The Cascade edge

If a vault falls below its liquidation line (liqCr, e.g. 120%), it is open to the Cascade — a keeper repays the SOT debt and seizes collateral at a fixed penalty, closing the position before it can go underwater. Should collateral ever drain with debt remaining, the shortfall is absorbed first by the protocol surplus, then surfaced as a loud bad-debt counter governance must cure — never silently socialized onto holders. The danger is named flatly so you can stand clear of it: keep your ratio high and the edge stays far away.

Where it lives

Sands of Time runs live on Arbitrum Sepolia today — the SandsVault engine and the SOT token, deposit through redeem. Open the /sands page, pick a collateral, deposit, and mint against it; watch the ratio bar on your vault card and top up or repay long before it nears liqCr. To wield the floor instead of the vault, redeem SOT straight for collateral whenever the dollar slips below a dollar.

• ▸Open a vault: deposit collateral, draw SOT above the minimum ratio.
• ▸Free your collateral: repay SOT any time to unlock the position.
• ▸Hold the peg: redeem 1 SOT for $1 of collateral when it trades cheap.