wUSD Stablecoin Mechanism and Revenue Sources

Definition

wUSD is an over-collateralized stablecoin, pegged 1:1 to the US dollar. It will be backed by a diverse range of assets, including USDT, BTC, ETH, and blue-chip DeFi assets.

Income Model (Diverse Sources)

• 🔗 Pendle Fixed Income: ~10-12% APY on principal tokens, with bonuses available

• ⚖ Ethena Delta Neutral Strategy: 15-25% APY, combining ETH staking with perpetual contract funding rates

• 🏛 Superstate RWA Bonds: Investing in US Treasuries, 4-5% APY, low-risk return

• 💳 Lending Market (Aave, Compound): 3-7% APY, providing a base interest return

• ♻ Protocol Income Distribution: A portion of transaction fees and liquidity income is returned to holders

  
  

Risk Buffer Mechanism

• The system will allocate 5% of profits to a risk buffer fund.

• This fund is used to mitigate extreme market conditions and undercollateralization risks.

Significance

Holding wUSD ≈ Holding a savings-oriented stablecoin with dividend rights, with an expected annualized return of ~15%. It also supports payments, cross-border settlement, and investment entry.