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Yield distribution

PreviousLP token pricingNextCircuit breaker

Last updated 11 months ago

Stable Unit has unique mechanisms for yield distribution built into the ERC20 token itself, without relying on the rebasing model. USDPro holders receive yield automatically and in real-time, directly in their wallets.

Work principle

An analogy to explain how it works would be a bar using free beer refills, while its suppliers come at unpredictable moments in time. If the barrel is full, the bartender opens the faucet, and the more supply they have, the wider the faucet is opened. On the other hand, when the supply is low, the bartender gradually closes the supply in such a way that the stream never stops.

Ultimately, the bar doesn’t need to predict the speed at which the bartender needs to pour the barrel as they only work based on the related completeness of the barrel while always having some beer for visitors.

Implementation

Detailed description of the mechanism will published once audits are completed.

The systems of yield distribution don’t use rebase models that are known to have several issues such as the inability to transact with exact amounts (which can break some contracts), lack of composability and .

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