Yield Collateralized Model

At its core, $USDu is a yield-collateralized stablecoin. This model ensures that every $USDu in circulation is fully backed by productive, on-chain lending income.

Unlike conventional stablecoins that rely on static collateral or user-minted supply, $USDu is exclusively minted by the protocol against vault tokens from credit-rated lending markets. These vault tokens represent claims on underlying lending activity, generating real, sustainable yield.

• Fully backed by yield-bearing collateral Every $USDu is minted against productive assets in credit-rated on-chain lending markets.

• No floating yield obligation Yield is not promised in advance but earned directly from actual lending income.

• Simple user flow

  • Acquire $USDu

  • Deposit into the $USDu Lending Vault

  • Receive $sUSDu (non-rebasing, yield-generating vault token)

• No staking or lockups No need to lock tokens or perform extra actions. Users can deposit or withdraw anytime.

• Transparent yield Yield is generated from real on-chain lending markets. No hidden debt or circular incentives.

• Designed for composability $sUSDu can easily integrate into other DeFi protocols as a yield-bearing stable asset.

• Efficient capital usage Users can deploy $USDu and $sUSDu into trading, liquidity provision, or leveraged strategies while earning real yield.