sUSG - Savings account

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General concepts​

sUSG stands for staked Tangent USD, and is the yield-bearing version of USG. It is simply needed to hold it in a wallet to earn yield. sUSG holders earn the a portion of protocol revenues, which are distributed as autocompounded USG. sUSG can be minted and redeemed for USG without any fee or delay, and can be used like any token in DeFi protocols. sUSG is implemented using the Yearn v3 vault standard.

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Rewards distribution​

As sUSG is a yield-bearing tokens, rewards are autocompounded. The ratio of USG per sUSG always grows over time, as sUSG accrues rewards from the system’s revenues. In other terms, each sUSG is backed by an always increasing amount of USG as time passes. 25% of protocol revenues are used to provide its yield to sUSG.

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Example​

Below is an example of how the ratio of USG per sUSG rises over time. In the situation where:

• sUSG index = 1.025

Each sUSG can be redeemed for 1.025 USG, and one USG is worth 0.9756 sUSG. As time passes and rewards are distributed, the index goes up. If we now have:

• sUSG index = 1.05

Each sUSG can now be redeemed for 1.05 USG, and one USG is worth 0.9524 sUSG.