Stake USDu

Overview

The Stake USDu mechanism allows users to stake USDu and receive sUSDu, a token that accrues value as rewards are added to the staking pool. The system ensures transparency and flexibility, with a cooldown period for unstaking.

Workflow

Staking USDu:

Users deposit USDu into the staking contract.

The contract mints sUSDu and transfers it to the user.

Earning Rewards:

Rewards from yield strategies are added to the staking pool periodically.

The sUSDu:USDu exchange rate increases, reflecting pool growth.

Unstaking:

Users initiate the unstaking process by burning their sUSDu.

A 7-day cooldown period is required before users can withdraw their USDu.

Key Components

Staking Contract:

Manages USDu deposits and sUSDu minting.

Tracks pool balance and updates exchange rates.

Reward Distribution:

Rewards are distributed periodically, increasing the USDu backing each sUSDu.

Quick Answers

Q: Do I have to stake USDu to receive rewards?

Yes. You must stake your USDu to earn rewards.

Q: Why is there a cooldown period?

There is a 7-day cooldown from requesting to unstake sUSDu to receiving USDu in return. Users must first request their USDu be unstaked, during which their USDu will be placed in a USDuSilo smart contract. Once the cooldown period has elapsed, users will be able to withdraw their USDu from the USDuSilo smart contract.

Q: Am I able to sell the sUSDu prior to the cooldown?

Yes, you can do so if external markets exist. However, Unipay does not guarantee the availability of such markets.

Q: Is it possible that I owe the protocol funds?

No. Rewards are always positive.

Q: What are staking rewards paid in?

The rewards are transferred to the staking contract in the form of USDu.