sherpaUSD

Purpose & Importance

An internal "wrapper" token that is always 1:1 against USDC, representing the vault's backing reserves. The exact supply of sherpaUSD (plus pending withdrawals) is equal to the total value locked in the vault (in USDC terms). SherpaUSD is used purely as an accounting asset, and does not interface with users under normal contexts.

Actions & Their Effects On sherpaUSD Supply

  • Depositing USDC mints sherpaUSD on the same network the user deposited onto and then transfers to the vault contract.

  • Withdrawing USDC transfers sherpaUSD out of the vault contract and burns it on the same network they withdrew from.

  • Progressing the cycle with positive yield will mint sherpaUSD at a quantity equal to the yield earned on only the primary network.

  • Rebalancing will burn sherpaUSD on the debit network and mint the exact amount on the credit network.

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