1. How can I acquire USDu if I am not whitelisted to mint?
Most users acquire USDu through DEX liquidity pools. USDu is available via swaps on the Unitas application and supported decentralized exchanges such as Orca. Direct minting and redemption are restricted to whitelisted participants.
2. What is the difference between holding USDu and staking it into sUSDu?
USDu is the base stable asset. Holding USDu provides price stability but does not earn yield.
sUSDu is the staked version of USDu. Users who stake USDu receive sUSDu, which accrues value over time as yield is earned and deposited into the staking contract.
3. How does sUSDu generate yield?
sUSDu earns yield from the revenue generated by the USDu strategy. This includes trading fees and funding rate payments associated with the delta-neutral JLP position. Yield is deposited into the staking contract in the form of newly minted USDu, increasing the value of sUSDu over time.
4. How is USDu kept stable while still earning yield?
USDu is backed by a delta-neutral position. JLP provides fee-based revenue, while short perpetual positions offset the price exposure of the underlying assets. This removes directional risk while allowing the protocol to capture trading-driven revenue.
5. Can I redeem USDu directly with the protocol?
Only whitelisted addresses can mint or redeem USDu directly with the protocol. Regular users enter and exit USDu through swaps on supported liquidity pools.
6. What happens to my USDu when I stake it into sUSDu?
When you stake USDu, it is deposited into the staking contract and sUSDu is minted to your address. Your USDu becomes part of the staking pool and begins accruing yield. The value of sUSDu increases as revenue is added to the pool.
7. How do I unstake sUSDu, and is there a cooldown?
To unstake, users burn sUSDu and initiate a withdrawal request. A 7-day cooldown applies before USDu can be withdrawn. During the cooldown, the USDu is held in a dedicated withdrawal contract and no longer earns yield.
8. Where can I verify the collateral backing USDu and sUSDu?
Users can verify collateral and solvency through Unitas’ transparency dashboard. These include onchain multisig holdings, custodial balances, and cryptographic proofs provided through third-party verification partners.
9. How does Unitas manage risk during volatile or low funding conditions?
Risk is managed through continuous monitoring of collateral composition, hedge alignment, and liquidity conditions. Revenue from JLP trading activity helps offset periods of reduced funding, and an insurance fund provides an additional buffer during adverse conditions.
A portion of protocol revenue is allocated to an insurance fund. This fund is used to smooth returns when revenue temporarily declines or hedging costs increase. Users cannot owe funds to the protocol through USDu or sUSDu.
