🪙Yield Token SoUSD Explained

How SoUSD earns yield:

• Deposited USDC is allocated across vetted DeFi strategies via BoringVaults.

• Yield is collected from these strategies and distributed back to the vault.

• The exchange rate increases to reflect earned interest, so SoUSD holders automatically benefit without needing to stake or take action.

• This interest is compounded, and visible directly in your SoUSD balance as it appreciates over time.

This model gives SoUSD holders:

• Stable purchasing power with yield that offsets inflation

• Real-time yield accrual without needing to stake or lock tokens

• Full composability for using SoUSD in swaps, lending, collateral, payments, and more

Every BoringVault meets strict inclusion criteria:

• Deployed on secure, audited protocols

• Minimum $100M TVL

• 6+ months of uptime

• Open withdrawals

• Monitored with on-chain analytics

SoUSD is not strictly pegged 1:1 to USD like traditional stablecoins. Instead, it represents shares in a yield-generating vault. Its value increases over time as interest accrues. This means:

• Your SoUSD balance may grow, even if your USD deposit amount stays the same.

• The “Total Value” in USD reflects the actual dollar value of your SoUSD shares, based on the current exchange rate.

You can think of SoUSD as a yield-bearing receipt token, whose USD-equivalent value is designed to stay close to your original deposit and grow gradually over time.