The invention comprises a rotary engine method and apparatus configured with a self-actuating/self-damping vane system. In the rotary engine apparatus, a set of vanes extend from a rotor to a housing, whereby the rotary engine is divided into expansion chambers. Each of the vanes enclose a stressed band wound at least partially around two or more rollers. Potential energy of the stressed band, which is optionally a smart metal, provides a radially outward force on the vane toward the housing, aiding in seal formation of the vane to the housing.