Yield Generation

How asUSD Earns its APR

asUSD doesn't print tokens or subsidize yields. Every basis point comes from actual economic activity—borrowers paying for capital, arbitrageurs capturing spreads, protocols accessing liquidity.

The Four Yield Streams

1. Credit Spreads (Primary Source)

The Core Engine: 5-20% APR

How it works:

• Borrowers pay interest to mint asUSD

• Yields flow to asUSD stakers

• Rates set by autonomous controller

• Higher demand = Higher yields

Current Sources:

Astera Lend Borrowers: ~$40k annual per $1M borrowed
Mini-Pool Interest: Additional yield per pool
Utilization Target: 80% for optimal rates
Result: 5-20% base APR to stakers

2. AMO Operations

Market Making Profits: 2-5% APR

Arbitrage AMO Yields:

• Profits from every peg correction

• Volatility becomes revenue

• Compounds during market stress

• All profits to asUSD holders

Example Day:

10 corrections × $0.002 spread × $2M volume = $40k daily
Annualized: ~3% additional APR
Higher volatility = Higher profits

3. Protocol Interest Payments

B2F Credit Lines: 5-10% APR

When protocols borrow asUSD:

• Lending markets pay for liquidity

• Perpetual exchanges pay for counterparty funds

• New protocols pay for bootstrapping

• Interest flows directly to holders

Example Credit Line:

$500k to external lending market at 15% APR
= $75k annual interest
Distributed to asUSD stakers
Scales with number of integrations

4. Cross-Chain Opportunities (Future)

Bridge and Deploy: 1-3% APR

Multi-chain yield capture:

• Deploy asUSD where rates are highest

• Arbitrage between chains

• Bridge fees accumulate

• Native yield on each chain

Staked asUSD (asUSDs)

Compound Without Complexity

How Staking Works

Deposit asUSD → Receive asUSDs → Earn Automatically → 
Redeem Anytime → Get asUSD + Yields

Key Features:

• Single-sided: No impermanent loss

• Liquid: Trade asUSDs on Etherex

• Auto-compounding: No claiming needed

• No long term lock-ups: Exit anytime with a 7-day withdrawal cooldown

The Staking Math

Metric	Value
Base APR	6-20%
AMO Boost	+2-5%
Protocol Yields	+5-10%
Total Range	6-35% APR

Why Yields Stay High

Sustainable Sources:

1. Credit demand is permanent - DeFi always needs leverage

2. Arbitrage is guaranteed - Price deviations create profits

3. Protocols need liquidity - Growth requires capital

4. Compounding accelerates - Yields reinvest automatically

Comparing Yield Sources

Stablecoin	Yield Source	APR	Sustainability
USDC	None to holders	0%	N/A
DAI	DSR (limited)	5-6%	Depends on RWA
sDAI	Maker surplus	5-7%	Governance dependent
crvUSD	Borrow interest	8-10%	Market dependent
asUSD	Multiple sources	6-30%	Diversified & permanent

Risk-Adjusted Returns

Why 30% Isn't Too Good to Be True

Traditional Finance Logic:

• Banks borrow at 0.5%

• Lend at 5-20% (loans, credit cards)

• Keep the 4.5-19.5% spread

asUSD Logic:

• Borrow at 0% (minting)

• Lend at 10-30% (DeFi demand)

• Give holders the spread

It's not magic—it's removing the middleman.

Dynamic Yield Optimization

The system automatically optimizes for maximum sustainable yield:

High Demand Period:

• Rates increase to 20-30%

• Attracts more capital

• Equilibrium reached

Normal Period:

• Rates stabilize at 10-15%

• Sustainable baseline

• Compounds steadily

Low Demand Period:

• Rates bottom at 5-10%

• Still beats TradFi

• Temporary dips only

The Compound Effect

Starting with $10,000 in asUSD:

Year	10% APR	20% APR	30% APR
1	$11,000	$12,000	$13,000
2	$12,100	$14,400	$16,900
3	$13,310	$17,280	$21,970
5	$16,105	$24,883	$37,129

Auto-compounding makes wealth inevitable.