# 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](/sherpaearn-vault/multichain-architecture/rebalancing.md) will burn `sherpaUSD` on the debit network and mint the exact amount on the credit network. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.sherpa.trade/sherpaearn-vault/sherpausd.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.