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Dividend Engine

Traditional brokerages pay quarterly dividends in lumpy, taxable events. Marian converts every dividend cash flow to USDC and streams it per block, pro-rata, to every basket holder — including those who have locked or collateralized their shares.

Life of a dividend

  T-15d  Company announces dividend (ex-div date, amount)
  T-0d   Ex-div: custodian records entitlement per share
  T+1d   Custodian receives cash from DTCC
  T+2d   Custodian sells cash → USDC, deposits to DividendDistributor
  T+2d   Distributor sets per-block drip rate for basket:
             r_bps  =  D_total  /  (blocks in stream_window)
  T+2d..T+32d   USDC streams to holders every block
                (30-day distribution window)
Every step is oracle-verified and re-org-safe.

Per-block accrual

The distributor uses an accumulator pattern identical to Synthetix's staking rewards. It stores a global reward-per-share counter that increases each block:

Update on every action (mint / redeem / claim):
   accGlobal  ←  accGlobal  +  (blocks_elapsed · r) / S_total
   userReward  =  s_user · ( accGlobal  −  userSnapshot )

Invariant:
   Σ_i userReward_i  =  streamed_total     (up to 1 wei rounding)
Locked and collateralized shares still earn
The accumulator lives on the basket token itself, not on the wallet balance. Whether the user holds the basket in a wallet, has it locked in mLocker, or has it pledged as collateral in a BorrowMarket — the dividend accrual is identical. Only the claim address changes (borrowers claim to their debt account by default).

Yield mathematics

A basket's on-chain dividend yield is the annualized USDC streamed divided by NAV:

Yield_div  =  ( Σ  D_k  over trailing 365d )  /  ( NAV · S_total )

Adjusted for basket management fee f_mgmt:
   Yield_net  =  Yield_div  −  f_mgmt

Worked example — bDIV25

ConstituentWeightDiv YieldContribution
Coca-Cola (KO)8.0%3.10%24.8 bps
Procter & Gamble (PG)8.0%2.45%19.6 bps
Johnson & Johnson (JNJ)7.5%3.05%22.9 bps
PepsiCo (PEP)6.5%3.28%21.3 bps
Walmart (WMT)6.0%1.35%8.1 bps
ExxonMobil (XOM)5.5%3.60%19.8 bps
… 19 more constituents58.5%avg 3.87%226.4 bps
Gross basket yield100.0%342.9 bps
Less management fee−20.0 bps
Net dividend yield322.9 bps

Reinvest vs. claim

Every basket holder chooses a routing preference. Auto-reinvest converts the streamed USDC back into basket shares at the next block, using the same NAV pricing. This produces continuous compounding:

Effective APY  =  ( 1  +  y / n )^n  −  1
              =  ( 1  +  0.0323 / 365 )^365  −  1
              =  0.03283  =  3.283%

Continuous compounding limit:
   e^y  −  1  =  e^0.0323  −  1  =  3.283%
(convergence is already essentially reached at daily.)
With daily compounding on a 3.23% net yield.
Tax note (not tax advice)
US-qualifying dividends flow through as such because the underlying custody is a regulated RWA-1400 structure. The USDC conversion happens post-custodian, so the payment retains its character on tax reporting the user's fiscal agent generates from their KYC-linked wallet.