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Overview

USDsd staking allows users to earn rewards ranging from 4-30% by staking their USDsd tokens in one of two staking pools. The protocol offers two distinct staking contracts with different reward rates and access requirements. Standard Yield Pool is accessible to all users with any amount, while Boost Yield Pool requires users to first stake in Standard Yield Pool at a 1:10 ratio.
Staking Pools: Standard Money offers two staking pools with different reward rates and access requirements. Standard Yield Pool allows any amount to be staked for standard rewards, while Boost Yield Pool offers higher rewards but requires staking in Standard Yield Pool at a 1:10 ratio first.

Staking Pool Structure

Standard Yield Pool

Standard Yield Pool is designed to be accessible to all users regardless of their stake size. This pool offers standard rewards ranging from 4-15% APY and serves as the entry point for all staking activities. Users can stake any amount of USDsd tokens in this pool with no minimum requirements. The pool features a 7-day cooldown period for withdrawals, automatic reward compounding, and real-time balance updates. It also serves as a prerequisite for accessing the Boost Yield Pool.

Boost Yield Pool

Boost Yield Pool is designed for users who want to maximize their rewards and are willing to stake larger amounts. To access Boost Yield Pool, users must first stake in Standard Yield Pool at a 1:10 ratio. For example, to stake 100 USDsd in Boost Yield Pool, you must first stake 1,000 USDsd in Standard Yield Pool. This pool offers higher rewards up to 30% APY, with the same 7-day cooldown period and automatic compounding features as Standard Yield Pool.

Staking Process

The staking process is straightforward and designed for maximum user convenience. First, you need to evaluate the requirements and select the appropriate pool based on your capital and risk tolerance. Standard Yield Pool is suitable for all users, while Boost Yield Pool requires significant capital commitment but offers higher rewards. Once you’ve chosen your pool, connect your wallet to the Standard Money app and ensure you have sufficient USDsd tokens for your chosen pool. Select the amount you want to stake, review and confirm the transaction, and you’ll receive sUSDsd tokens representing your staked position. The process is designed to be simple and user-friendly while maintaining security and transparency.

Reward Mechanism

Both staking pools operate on the same fundamental reward mechanism, with rewards generated from the protocol’s revenue-generating activities including basis trading, liquidity provision, and other yield-generating strategies. The difference in reward rates between pools reflects the different risk profiles and capital requirements. Rewards are generated from the protocol’s basis trading activities, liquidity provision on exchanges, and other revenue-generating strategies. These rewards are distributed proportionally to stakers based on their stake size and the pool they’ve chosen. The compounding effect means rewards are automatically compounded into the user’s sUSDsd balance, allowing the staked amount to grow over time without requiring manual intervention. User balances are updated in real-time as rewards accrue, providing transparency and allowing users to track their earnings continuously. This real-time tracking helps users understand the benefits of compound growth and make informed decisions about their staking strategy.

Withdrawal and Cooldown

Both staking pools implement a 7-day cooldown period for withdrawals to ensure protocol stability and prevent rapid capital outflows that could impact the protocol’s operations. When a user initiates a withdrawal, their position enters a 7-day cooldown period during which they cannot complete the withdrawal. During this time, their position continues to earn rewards, and they remain a participant in the staking pool. The cooldown period is set to 7 days and can be adjusted if needed. Users will be informed of the current cooldown period before initiating withdrawals. After the 7-day cooldown period expires, users can complete their withdrawal and receive their original USDsd tokens plus all accrued rewards. The withdrawal can be completed at any time after the cooldown period without additional waiting.

Risk Considerations

Choosing between Standard Yield Pool and Boost Yield Pool involves different risk considerations. Standard Yield Pool offers standard rewards with no barriers to entry, making it accessible to all users. Boost Yield Pool offers higher potential rewards but requires significant capital commitment and may have different risk profiles. Both pools are subject to market risks including changes in reward rates, protocol performance, and overall market conditions. Users should carefully consider their risk tolerance when selecting a pool. The 7-day cooldown period means users cannot immediately access their staked funds, which could impact their liquidity needs. Users should ensure they can afford to have their funds locked during the cooldown period. Both pools are also subject to protocol risks including smart contract risk, operational risk, and other risks associated with the Standard Money protocol. Users should review the protocol documentation and FAQ before staking to understand all potential risks and mitigations.

Best Practices

Users should carefully consider their staking strategy based on their financial situation, risk tolerance, and liquidity needs. Standard Yield Pool is suitable for all users regardless of stake size, while Boost Yield Pool is better for users with significant capital who want to maximize rewards and are willing to stake 10x the amount in Standard Yield Pool first. Diversification can be achieved by staking in both pools to balance risk and reward, though remember that Boost Yield Pool requires 10x stake in Standard Yield Pool as a prerequisite. Staking is designed for users with a long-term perspective who can benefit from the compounding effect of rewards over time. Users should consider their investment horizon when deciding to stake and regularly monitor their staked positions, reward accrual, and any changes to protocol parameters that might affect their staking experience.

Next Steps

Staking rewards are not guaranteed and can vary based on market conditions and protocol performance. Users should carefully consider their risk tolerance and financial situation before staking USDsd tokens.
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