# 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](https://docs.sherpa.trade/sherpaearn-vault/depositing) out of the vault contracts. The minting price used when processing [deposits](https://docs.sherpa.trade/sherpaearn-vault/depositing) can only be estimated based on prior yield metrics (see [Deposit Flow & Pricing](https://docs.sherpa.trade/sherpaearn-vault/depositing) for specifics)

#### **Formula**

Per cycle `shUSD` price is calculated by:

<p align="center"> <em><mark style="background-color:$info;">total deposited + pending deposits + past cycle accrued yield</mark></em><br><em><mark style="background-color:$info;">----------------------------------------------------------------------</mark></em><br><em><mark style="background-color:$info;">total <code>shUSD</code> shares</mark></em><br><br>P<mark style="color:$info;">rice calculation is immune to enroute crosschain transfers of <code>shUSD</code> and any minting or burning of <code>shUSD</code> triggered by a contract other than the vault contracts themselves.</mark><br></p>

#### **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.