Staking Model
Main St has implemented a sophisticated staking model that balances capital efficiency, user experience, and regulatory compliance.
Core Token Structure
msUSD (Main St USD)
The base token that maintains a soft dollar peg
Serves as the entry point for users
Can be minted directly with USDC at a 1:0.998 ratio by KYC-verified users
smsUSD (Staked Main St USD)
Received when users stake msUSD
Automatically accrues yield from delta-neutral strategies
Represents a claim on the underlying msUSD plus accumulated yield
How Staking Works
Deposit Process
Users deposit msUSD into the staking contract
They receive smsUSD representing their share of the yield-generating pool
The exchange rate between msUSD and smsUSD continuously updates as yield accrues
Yield Accrual
As the protocol generates yield from options strategies, the value of smsUSD increases relative to msUSD
This increasing exchange rate represents the yield earned by stakers
No manual claiming or harvesting required
Unstaking Process
Users can unstake at any time by converting smsUSD back to msUSD
The amount of msUSD received reflects the original deposit plus accumulated yield
Market Access
msUSD can be acquired through:
Direct minting by KYC-verified users
Purchase on decentralized exchanges like ShadowDEX
Integrated partner platforms within the Sonic ecosystem
Benefits of the Staking Model
Enhanced Efficiency: Optimizes capital utilization by deploying assets strategically
Capital Concentration: Maintains unified liquidity in a single token ecosystem
Compliance-Friendly: Designed with regulatory considerations in mind
Scalable Architecture: Supports growth to $500M-$1B with 30%+ APY
Ecosystem Integration: Forms an infrastructure layer for options volatility strategies
The staking model represents Main St's commitment to creating a sustainable "savings account for crypto natives" while maintaining the highest standards of security and compliance.
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