Returns Calculation & Distribution
Understanding how yields are calculated and distributed through the msUSD/smsUSD staking system.
Yield Calculation Process
Strategy Performance Measurement: Daily assessment of options arbitrage and delta-neutral strategy returns
Fee Deduction: Protocol fees (10% to insurance fund, 15% to treasury) are deducted from gross yields
Net Yield Distribution: Remaining 75% of yields flow to smsUSD holders through exchange rate appreciation
Distribution Mechanism
Exchange Rate Updates: The msUSD to smsUSD exchange rate updates continuously as yields accrue
Automatic Compounding: Yields compound automatically without requiring user action
No Manual Claims: Users benefit from yield simply by holding smsUSD tokens
Distribution Timing
Strategy Execution: Yield generation occurs continuously through active trading
Rate Updates: Exchange rates reflect accumulated yield on an ongoing basis
Performance Assessment: Monthly performance reviews ensure consistent yield delivery
Yield Transparency
Users can track yield performance through:
Real-time exchange rate monitoring on our dashboard
Historical performance data and analytics
Monthly performance reports
Live strategy performance metrics
Risk Considerations
Yields are variable and depend on:
Options market conditions and volatility levels
Strategy capacity and scaling effects
Market liquidity and execution efficiency
Overall crypto market dynamics
Historical performance does not guarantee future results. All yield projections are estimates based on backtesting and current market conditions.
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