Overview
Staked dUSD is an ERC-4626 vault that allows users to stake their dUSD and receive sdUSD receipt tokens. These receipts function similarly to yield-bearing stablecoins (YBS). The dUSD deposited into dSTAKE is automatically supplied to lending protocols, earning yield and points from lending markets which accrue to sdUSD. Users can unstake sdUSD for dUSD based on available liquidity in lending markets. Through dTRINITY's subsidized lending mechanism, sdUSD is expected to deliver above-market yield from boosted utilization.
ℹ For user instructions, please refer to our How to Stake guide.
User Benefits:
Intrinsic Yields: sdUSD is designed to potentially outperform other YBS through its subsidized lending innovation. dUSD, the underlying asset of sdUSD, passes on subsidies to borrowers, which increases demand for the stablecoin. This high utilization rate then translates to more competitive and higher supply APYs for depositors, making sdUSD an attractive option for users seeking enhanced returns.
Diverse Yield Strategies: As an ERC-4626 vault, sdUSD can be used as collateral in lending protocols to borrow additional assets. Additionally, users can deposit sdUSD into Yield Farming protocols, which allows them to split the token into Yield Tokens (YT) and Principle Tokens (PT). This separation allows more targeted strategies, such as selling the YT for upfront yield or holding the PT to earn a fixed rate of return. Users can also provide sdUSD liquidity to earn yield from LP positions on a decentralized exchange, for example, Curve Finance.
Balanced Risk Profile: The collateral backing dUSD within the lending protocols is set with conservative maximum Loan-to-Value (LTV) ratios. For example, on dLEND, borrowers can only borrow up to 80% of their collateral's value. This conservative LTV helps to create a safer risk environment for lenders compared to higher LTVs, as it provides a substantial buffer against potential market volatility and price drops of the underlying assets. While no system is without risk, this measure is designed to mitigate a significant portion of the risk for liquidity providers.
Collateral Reserves:
Network | dUSD Token Address | Reserve Address |
Fraxtal L2 | ||
Sonic |
To learn more about dTRINITY USD (dUSD), the underlying collateral of Staked dUSD (sdUSD), check out the dUSD page in our Help Center.