How to Stake USDi
Staking USDi enables holders to receive the protocol's generated yield
Users can stake & unstake USDi/sUSDi with Injera via our UI.
Using the UI, the staking & unstaking USDi/sUSDi user workflow is:
The user requests to stake/unstake USDi/sUSDi 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 sUSDi/USDi as their USDi/sUSDi is automatically swapped.
Important to Note
Users do NOT need to do anything but hold sUSDi to receive yield.
Yield is not paid directly to sUSDi holders; rather, it accumulates within the staking contract, which results in the "value" of sUSDi rising over time. Users are able to unstake their sUSDi at any time, at which point they receive an amount USDi reflecting the staked amount plus any increase in value of sUSDi from the time the user staked until unstaking.
The amount of sUSDi a user will receive when staking USDi will depend on the current value of sUSDi. At launch the value will be 1 sUSDi = 1 USDi, but sUSDi is expected to slowly increase in value as protocol yield is transferred into the Staking smart contract.
This is because we have implemented sUSDi 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 sUSDi than USDi staked, the value of the sUSDi will always be equal to or greater than the USDi you staked.
Users can only receive a positive or zero yield holding sUSDi. The value of sUSDi 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 Reserve Fund, to be discussed later.
Last updated