Is sUSDe a yield-bearing stablecoin?

Yes. sUSDe represents staked USDe and automatically accrues rewards generated by the Ethena protocol. When you deposit USDe into the StakedUSDe contract, you receive sUSDe, an ERC-4626 vault token. Over time, USDe rewards are transferred into the contract, increasing the amount of USDe each sUSDe can be redeemed for. This means your holdings grow in value without needing to actively claim rewards.

How does sUSDe generate yield?

Yield comes from three main sources tied to USDe’s backing assets. First one is through funding and basis spreads from delta-hedged crypto positions. Second is through staked ETH rewards from consensus, execution, and MEV and finally through Stablecoin interest from fixed-yield programs like Coinbase’s USDC rewards. Funding rate income is typically the largest contributor but can vary sharply depending on derivatives market conditions. Rewards are calculated weekly, then distributed gradually in USDe to prevent reward-timing arbitrage.

Are there lockups or cooldowns for sUSDe?

There’s no minimum staking period, but unstaking comes with a 7-day cooldown. When you request to unstake, your sUSDe is burned and the equivalent USDe is placed in the USDeSilo contract. After the cooldown, you can withdraw your USDe. If you want liquidity before the cooldown ends, you could sell sUSDe on external markets, though Ethena does not guarantee such markets will exist.