Core Mechanics

Treasury & Hybrid Yield Strategy

The high yield of sRUSD comes from our unique hybrid yield strategy, which is implemented in three phases to balance risk and return:

• Phase One (100% On-Chain): In the initial phase of the protocol, 100% of the treasury's assets will be deployed in time-tested and security-audited blue-chip DeFi protocols on the BNB Chain to earn stable, low-risk interest.

• Phase Two (Up to 5% for Launchpad): As the ecosystem matures, the treasury will allocate up to 5% of its liquidity to provide short-term bridge loans to the highest-quality assets on our Launchpad, capturing alpha returns that are higher than the on-chain market.

• Phase Three (Up to 15% for RWA Loans): Ultimately, the treasury will allocate up to 15% of its liquidity to invest in over-collateralized, off-chain real estate loan businesses with yields of 10-20%.

This hybrid strategy allows our yield to have both the stable foundation of on-chain DeFi and the unique, high-return, and low-correlation growth engine of off-chain RWA.

Fee Structure & Revenue

• sRUSD Performance Fee: The core revenue source for the protocol. We charge a 20% performance fee on the gross profit generated by all treasury yield strategies. This fee is used for the protocol's operation, development, and to capitalize the insurance fund. The remaining 80% of the profit is distributed to sRUSD holders.

• Mint & Redeem Fee: The protocol charges a small two-way transaction fee (0.05%-0.1%) on minting and redeeming operations, primarily to prevent high-frequency arbitrage and maintain the price stability of RUSD.

Security & Risk Management

• Unstaking & Redemption Cooldowns: To ensure the liquidity health of the protocol and the security of user funds, we have designed a dual cooldown period:

  • $sRUSD -> RUSD Unstaking: A 3-day cooldown period. This is intended to prevent the impact of instantaneous large withdrawals by whales on the yield pool and to ensure orderly asset management.

  • $RUSD -> USDC/USDT Redemption: A 1-day cooldown period. This provides a time window for the protocol and the risk control team to identify and prevent potential malicious attacks or illicit fund activities.

• Insurance Fund: The insurance fund is the last line of defense to protect users' principal. We will periodically inject a significant portion of the protocol's revenue into this fund. In extreme cases (such as a default on an RWA loan), the insurance fund will be used first to cover the losses, thereby maximizing the protection of the principal of sRUSD holders.