shUSD

General Utility

An interest-bearing "share" token that automatically captures all yield proceeds accrued by the SherpaEarn vault strategy. The token is fully transferable between accounts, and ownership of it grants the holder withdrawal rights to underlying USDC presently under fund management.

Official Vault Pricing

The initial price (upon vault deployment) of shUSD is equal to exactly 1 USDC. This price will change roughly every 24 hours when the cycle gets advanced forward and exact positive yield of the tracked strategy gets passed to the vault contract's state.

In effect, all yield gets auto-compounded into the value of shUSD and the token grows perpetually in value overtime as the underlying strategy generates returns. The pricing displayed on the vault overview will always be the redemption price used when processing withdrawals out of the vault contracts. The minting price used when processing deposits can only be estimated based on prior yield metrics (see Deposit Flow & Pricing for specifics)

Formula

Per cycle shUSD price is calculated by:

total deposited + pending deposits + past cycle accrued yield ---------------------------------------------------------------------- total shUSD shares Price calculation is immune to enroute crosschain transfers of shUSD and any minting or burning of shUSD triggered by a contract other than the vault contracts themselves.

Pricing Divergences

There may be DEX markets for shUSD established by third parties which will deviate from official vault pricing. This has no impact on the strategy set official vault price, and a user can buy or sell shUSD using the vault mechanism at the officially stated price anytime.