sUSX: Yield-Bearing USX
sUSX is the yield-bearing version of USX that represents your share in the protocol's yield-generating vault. While the number of sUSX tokens in your wallet remains constant, their value in terms of USX (and USD) increases over time as the protocol accumulates yield. No minimum stake required. You can start with any amount.
Temporary Distribution Schedule (Jan-Feb 2026)
To ensure fair yield distribution while we develop an improved smart contract, we've implemented a temporary epoch-based system. Yield is now distributed twice monthly instead of once monthly.
See Yield Distribution Schedule for full details on deposit windows and distribution process.
How sUSX Works
The Vault Mechanism
When you stake USX, you receive sUSX, which represents your proportional share of the yield-bearing vault. The amount of sUSX you receive is determined by:
How much USX you deposit
The current exchange rate (USX:sUSX ratio)
Token Exchange Example
If you stake 1,000 USX when the exchange rate is 1 USX = 0.9 sUSX:
You receive: 900 sUSX tokens
Initial value: 900 × 1.11 USD = exactly 1,000 USD
Value Appreciation Over Time
The number of sUSX tokens you receive may be less than your USX deposit, but their USD value is equivalent at the time of staking. As the protocol generates yield, the USX value of each sUSX continuously increases.
Example
After one year at 12% APY:
Your 900 sUSX tokens (unchanged in quantity) are now worth 1,120 USX
Unstaking yields: 900 × 1.244 USD = 1,120 USD
Total gain: 120 USD or 12% on your 1,000 USD deposit
Earning Yield Automatically
No Action Required
Users simply hold sUSX to earn yield. No claiming, staking extensions, or position management needed. Yield accrues continuously and compounds automatically.
How Yield Accrues
Protocol generates returns from onchain strategies (Aave, Morpho, Pendle, Euler, etc.)
90% of generated yield is distributed to sUSX holders
10% goes to protocol fees
Yield is reflected in increasing sUSX→USX exchange rate
Auto-Compounding
As yield accrues to the vault, the exchange rate increases. Your sUSX tokens automatically become more valuable in USD terms. No reinvestment needed.
Staking and Unstaking
Staking USX for sUSX
Minimum: No minimum amount (can stake $1 or $1M)
Fee: 0% (free to stake)
Processing: Instant
Exchange Rate: Determined by current vault rates
You can stake USX anytime through the platform with a single transaction.
Unstaking sUSX to USX
When you unstake, your sUSX tokens are burned and you receive your proportional share of USX based on the current exchange rate.
Unstaking Process:
Initiate withdrawal
15-day cooldown period begins
After 15 days, receive USX + accrued yield
Pay 0.05% unstaking fee
The 15-Day Cooldown Period
The protocol requires a 15-day cooldown before processing withdrawals. This allows the protocol sufficient time to:
Systematically unwind positions in yield strategies
Gather liquidity for redemptions
Manage exit without market impact
Maintain strategy integrity
Plan ahead if you need liquidity. The waiting period is built into the protocol design.
Yield Generation Strategy
Diversified Onchain Strategies
The protocol generates yield from DeFi opportunities managed through Blend. Funds are deployed across audited vaults and apps:
Pendle: Yield-tranching protocols
Euler: Lending protocols
Morpho: Optimized lending markets
Aave: Major lending platform
And many more.
You can always find which all apps are used here: https://www.usx.capital/dashboard.
Delta-Neutral Hedging
Strategies employ delta-neutral hedging to reduce volatility while maintaining yields. This conservative approach prioritizes sustainable returns over maximum yield.
Risk Management
The protocol maintains reserves to ensure sUSX value remains stable or increases. In scenarios where strategies underperform, the reserve fund absorbs losses rather than passing them on to sUSX holders.
Composability and DeFi Integration
Full DeFi Compatibility
sUSX is designed to be fully composable with other DeFi protocols. You can use sUSX for:
Lending: Deposit sUSX into lending protocols for additional yield
Liquidity Provision: Supply sUSX to DEX pools for trading fees
Collateral: Use sUSX as collateral in borrowing protocols
Yield Trading: Tokenize and trade yield exposure
Maximizing Yield Opportunities
By stacking sUSX yields with other DeFi opportunities, you can compound returns. For example:
Earn up to 15% APY from sUSX appreciation (by staking)
Earn trading fees by providing liquidity
Revenue Model and Sustainability
How the Protocol Sustains Itself
USX.Capital operates with a sustainable revenue structure:
90% of generated yield → Distributed to sUSX holders (who staked their USX)
10% of yield → Protocol fees (used for development, operations and reserves)
Why This Works
Holders get the vast majority of yield
Protocol has an incentive to maximize returns (more yield = more fees)
Sustainable fee model doesn't rely on token incentives
Aligned economics benefit both protocol and users
Reserve Fund Protection
Insurance Against Drawdowns
The protocol maintains an onchain reserve fund designed to cover potential losses from yield strategies. This protects both sUSX value and the broader protocol.
How Reserves Help
Absorb losses before they impact sUSX holders
Maintain stable or increasing sUSX value
Provide a buffer during market volatility
Enable strategic withdrawals during underperformance
Common Questions
Q: Is there a minimum to stake?
A: No. You can stake any amount, from a small test transaction to $1M+.
Q: Can I withdraw anytime?
A: Yes, but unstaking requires a 15-day cooldown period before you receive your USX.
Q: What exchange rate do I get?
A: The current exchange rate at the time of staking/unstaking, determined by accumulated yield.
Q: Do I have to claim rewards?
A: No. Yield is automatically compounded. Just hold sUSX and your USD value increases.
Q: What if strategies underperform?
A: The reserve fund absorbs losses, protecting sUSX holders from drawdowns.
Q: Can I use sUSX in other protocols?
A: Yes, sUSX is fully composable. You can use it for lending, liquidity provision, or as collateral elsewhere.
Q: Why is the cooldown 15 days?
A: It allows the protocol time to unwind positions in yield strategies and gather liquidity for redemptions without market impact.
Q: Is my principal protected?
A: sUSX is backed by diversified, hedged strategies. The reserve fund provides additional protection against underperformance.
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