Staking USDe enables holders to receive the protocol's generated yield
Users in permitted jurisdictions can stake & unstake USDe/sUSDe with Ethena via our UI.
Using the UI, the staking & unstaking USDe/sUSDe user workflow is:
The user requests to stake/unstake USDe/sUSDe via our dApp interface by clicking "Stake"/"Unstake", which pops up their selected wallet to sign the requested transaction.
After the user signs the transaction with their wallet, the transaction is submit to the blockchain.
Upon successful confirmation of the transaction, the user receives sUSDe/USDe as their USDe/sUSDe is atomically swapped.
Important to Note
Users do NOT need to do anything but hold sUSDe to receive yield.
Yield is not paid directly to sUSDe holders; rather, it accumulates within the staking contract, which results in the "value" of sUSDe rising over time. Users are able to unstake their USDe at any time, at which point they receive an amount USDe reflecting the staked amount plus any increase in value of stUSDe from the time the user staked until unstaking.
The amount of sUSDe a user will receive when staking USDe will depend on the current value of sUSDe. At launch the value will be 1 sUSDe = 1 USDe, but sUSDe is expected to slowly increase in value as protocol yield is transferred into the Staking smart contract.
This is because we have implemented sUSDe using a token vault mechanism to provide protocol yield to permitted users. This mechanic is similar to Rocketpool's rETH.
Therefore, while a staker might receive less sUSDe than USDe staked, the value of the sUSDe will always be equal to or greater than the USDe youstaked.
Users can only receive a positive or zero yield holding sUSDe. The value of sUSDe will NOT decline, even in periods where the protocol is earning negative yield, as the protocol does not and cannot remove assets from the staking contract. Such periods are expected to be covered by the Insurance Fund, to be discussed later.