Savings reUSD
Savings reUSD (sreUSD) is a growth-oriented vault that allows long-term holders of reUSD to earn sustainable yield directly from the protocol’s weekly revenue. It is implemented as a standard ERC-4626 vault with auto-compounding mechanics, which means that depositors continuously accrue yield without the need for lockups, cooldown periods, penalty fees, or separate reward tokens. Yield is sourced from total protocol revenue and is distributed directly to stakers.
The introduction of sreUSD is designed to strengthen the stability of reUSD’s peg while creating new opportunities for integrations within the broader DeFi ecosystem. A dynamic interest-rate mechanism adjusts borrowing costs based on how closely reUSD tracks its peg. When the peg is stable, borrowing rates are lower, reducing fees to the base level. When reUSD trades below peg, borrowing rates increase up to a defined threshold. This additional revenue collected during periods of peg stress is funneled directly into sreUSD.
Key Features
Standard ERC-4626 vault with auto-compounding reUSD yield
Yield is sourced from total weekly protocol revenue and streamed to vault depositors
No cooldowns, lockups, or penalties
No emissions or extra reward tokens
Native LayerZero bridging support
Peg-Based Dynamic Interest Rates
A new interest rate calculator has been deployed across all reUSD pairs. It includes priceWeight multiplier that adjusts borrowing rates based on how closely reUSD tracks its peg:
Interest will continue to be calculated based on underlying lending interest, sfrxUSD interest, and a constant 2%
priceWeightis used to determine how much of the underlying interest or sfrxusd interest should be used as fees. Previously, this was a flat 50%. Going forward it will be a range between 50% (on-peg) and 60% (off-peg).As the reUSD peg approaches 1, interest rates decrease back to the base 50% of underlying/sfrxusd interest rates.
As the price falls below peg, rates increase to a max of 60% of underlying/sfrxusd interest rates.
The rate adjustment is bounded by configurable min/max thresholds (ie. How much of the underlying/sfrxusd rates should be charged as fees)
This mechanism increases fees during periods of peg instability. The additional revenue it creates is distributed as yield to sreUSD.
Example:
At the conclusion of epoch X:
the time-weighted price of reUSD was $0.992
sfrxUSD yield was 10% and was higher than all underlying lending rates
80k reUSD was collected via interest
20k reUSD collected via redemptions
This means the effective interest rate during this period was 58% of sfrxUSD, or 5.8% (5% base + 0.8% off-peg). This allows us to compute the following two components:
base interest fees (5%): ~68.96k
off-peg fees (0.8%): ~11.03k
Therefore 11.03k reUSD is immediately allocated to sreUSD and the remaining 68.96k interest fees + 20k redemption fees are pooled and split according to the ratios above.
In this example, the final distributions would be as follows
Staked RSUP
62.27k
sreUSD
24.37k (13.34k + 11.03k)
Insurance Pool
8.89k
Treasury
4.44k
Total
~100k (80k interest + 20k redemption)
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