sUSX: Yield Bearing USX

sUSX is the yield bearing version of USX. When you stake USX, you receive sUSX tokens that automatically appreciate in value as the protocol generates yield.

How sUSX Works

USX.Capital distributes yield to sUSX holders through a "Token Vault" mechanism, similar to other yield-bearing tokens in DeFi. When you stake USX, you receive sUSX which represents your share of the yield-bearing vault.

• The amount of sUSX you receive when staking is determined by how much USX you deposit and the current exchange rate (USX:sUSX)

• The number of sUSX tokens you receive may be less than your USX deposit, but their value will be equivalent at the time of staking

• As the protocol generates yield, the USX value of sUSX continuously increases

• When you unstake, you receive your initial USX plus your share of accumulated yield

• Users simply hold sUSX to earn yield, no further action is required.

For example, if you stake 1,000 USX when the exchange rate is 1 USX = 0.9 sUSX, you'll receive 900 sUSX tokens. If you unstake when the exchange rate is 1 sUSX = 1.1 USX, you'll receive 990 USX (900 × 1.1), representing a 10% yield.

Yield Generation and Distribution

The protocol generates yield from two primary sources:

• Offchain strategies (90% allocation): Market-neutral strategies executed by hedge fund partners

• Onchain strategies (10% allocation): DeFi opportunities managed through Blend

The value of sUSX changes in real time whenever there are pending rewards, reflecting continuous yield accrual as profits are distributed to the protocol.

To learn more about the strategies, you can read Yield Strategies.

Protocol Revenue Model

USX.Capital operates with a sustainable revenue structure:

• 90% of generated yield is distributed to sUSX holders (who staked their USX tokens)

• 10% of yield as protocol fees. More details in Fees.

The protocol also earns revenue from USX holders. When users hold USX without staking to sUSX, their funds don’t earn yield. However, the underlying strategies that back all USX continue generating returns. The yield from these unstaked balances accrues to the protocol, strengthening reserves and sustainability.

Unstaking Process

When you unstake, your sUSX tokens are burned and you receive your proportional share of USX based on the current exchange rate. The protocol requires a 15 day cooldown period before processing withdrawals.

This cooldown period allows the protocol sufficient time to systematically unwind positions in yield strategies and fulfill redemption requests.

Prefer to hold a stable $1 asset? Read about USX: The $1 Stablecoin.

FAQs:

What's the difference between USX and sUSX?

USX is a regular stablecoin pegged to $1 and fully collateralised by USDC. sUSX is the yield bearing version that represents your share in the yield generating vault. While the number of sUSX tokens in your wallet remains constant, their value in terms of USX (USD) increases over time. More in USX vs sUSX.

How do I convert between USX and sUSX?

You can stake USX for sUSX through our platform with no minimum amount required. When unstaking, your sUSX is burned and you receive your original USX deposit plus accrued yield based on the current exchange rate. A 0.05% unstaking fee applies.

How can I track my earnings?

Once USX mainnet launches, you'll be able to track sUSX’s value and earnings in real-time through our dashboard. The increasing exchange rate between USX and sUSX reflects your earned yield.

What happens if strategy returns are negative?

The protocol maintains reserves to ensure sUSX value remains stable or increases. In scenarios where strategies underperform, reserve fund would absorb losses rather than passing them to sUSX holders.

Can I use sUSX in other DeFi protocols?

Yes, sUSX is designed to be fully composable with other DeFi protocols. It can be used for lending, liquidity provision, or other DeFi activities, allowing you to maximize your yield opportunities. Find a list of External Integrations where you can use USX and sUSX.