> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tori.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# strUSD

> Synthetic dollar that accrues yield

<img src="https://mintcdn.com/tori-a4f37b86/3H8dnTWjceeNc9vd/logo/strusd.svg?fit=max&auto=format&n=3H8dnTWjceeNc9vd&q=85&s=eea2c32da73c1b108f46e9f5de3f0ed3" alt="strUSD" width="80" height="80" data-path="logo/strusd.svg" />

<Note>
  Yields are variable and depend on market conditions. Past performance does not guarantee future results. See [Risk Disclosures](/resources/risks).
</Note>

## What is strUSD?

strUSD is the staked version of trUSD that accrues yield. When you stake trUSD, you receive strUSD tokens that automatically accumulate yield over time from Tori's institutional-grade trading strategies.

Think of strUSD as a "receipt" for your staked trUSD that grows in value as yield is generated.

**Key characteristics:**

| Feature             | Description                         |
| ------------------- | ----------------------------------- |
| **Ticker**          | strUSD                              |
| **Standard**        | ERC-20                              |
| **Primary Network** | Ethereum Mainnet                    |
| **Multi-chain**     | Native support via Chainlink CCIP   |
| **Staking**         | Instant                             |
| **Unstaking**       | 7-day cooldown period               |
| **Yield**           | Automatic accrual via exchange rate |

## How strUSD Works

### The Exchange Rate Mechanism

Unlike some yield tokens that distribute rewards periodically, strUSD uses an **exchange rate mechanism**. Here's how it works:

1. **Initial Rate**: When you first stake, the exchange rate determines how much strUSD you receive for your trUSD
2. **Yield Accrual**: As yield is generated, the exchange rate increases
3. **Redemption**: When you unstake, you receive trUSD based on the current (higher) exchange rate

<Accordion title="Example: Understanding the Exchange Rate">
  **Day 1:**

  * Exchange rate: 1 strUSD = 1.00 trUSD
  * You stake 10,000 trUSD
  * You receive 10,000 strUSD

  **After 6 months:**

  * Exchange rate has increased to: 1 strUSD = 1.10 trUSD
  * Your 10,000 strUSD is now worth 11,000 trUSD
  * That's approximately 10% over the period (hypothetical)

  **When you unstake:**

  * You request to unstake your 10,000 strUSD
  * After the 7-day cooldown, you receive 11,000 trUSD
  * The exchange rate reflects 1,000 trUSD in accrued yield

  *Note: This is a hypothetical example. Actual yields vary based on market conditions.*
</Accordion>

**Why exchange rates?** This mechanism is gas-efficient (no claiming transactions needed) and compounds automatically.

<Info>
  **How the rate is determined:** strUSD implements the ERC-4626 tokenized vault standard. The exchange rate is computed on-chain as `exchangeRate = totalAssets / totalShares`. No person or committee sets this rate; it is a mechanical output of the smart contract based on the vault's net asset value.
</Info>

### Staking Process

<Steps>
  <Step title="Have trUSD">
    First, you need trUSD in your wallet. [Get trUSD →](/products/trusd)
  </Step>

  <Step title="Navigate to Stake">
    Go to [app.tori.finance](https://app.tori.finance) and select the **Stake** tab.
  </Step>

  <Step title="Enter Amount">
    Enter how much trUSD you want to stake. There's no minimum.
  </Step>

  <Step title="Confirm Transaction">
    Review and confirm the transaction in your wallet.
  </Step>

  <Step title="Receive strUSD">
    strUSD tokens appear in your wallet and begin accruing yield based on current market conditions.
  </Step>
</Steps>

### Unstaking Process

When you're ready to exit your position:

<Steps>
  <Step title="Navigate to Unstake">
    Go to the **Unstake** tab in the app.
  </Step>

  <Step title="Enter Amount">
    Enter how much strUSD you want to unstake.
  </Step>

  <Step title="Initiate Cooldown">
    Confirm the transaction to begin the 7-day cooldown.
  </Step>

  <Step title="Wait">
    Your request is pending during the cooldown period.
  </Step>

  <Step title="Claim">
    After 7 days, return to the app and claim your trUSD.
  </Step>
</Steps>

<Note>
  **Why 7 days?** The cooldown period ensures proper liquidity management. It allows the protocol to manage redemptions in an orderly manner without forcing liquidations or impacting other users.
</Note>

## Fees

### Performance Fee

A **10% performance fee** is applied to strUSD yield.

| What's Charged         | What's NOT Charged    |
| ---------------------- | --------------------- |
| 10% of generated yield | Staked token amount   |
|                        | Staking transaction   |
|                        | Unstaking transaction |

**Example:** If your position generates 100 trUSD in yield, 10 trUSD goes to the protocol and 90 trUSD accrues to your strUSD.

<Info>
  The performance fee is automatically factored into the exchange rate. You don't need to pay it separately. It's already reflected in your strUSD value.
</Info>

## Where Does Yield Come From?

Yield is generated from market-neutral trading strategies that institutional traders have used for decades:

<AccordionGroup>
  <Accordion title="Money Markets" icon="landmark" defaultOpen>
    **What it is:** Short-duration instruments in select global markets. This is typically our largest allocation.

    **How it works:** Access to institutional money market rates and short-term lending opportunities.

    **Why it's market-neutral:** These are typically very short-duration, high-quality instruments with minimal price risk.
  </Accordion>

  <Accordion title="Futures Arbitrage" icon="chart-line">
    **What it is:** Capturing price differences between spot and futures markets.

    **How it works:** When futures trade at a premium to spot prices, the spread can be captured as yield by being long spot and short futures simultaneously.

    **Why it's market-neutral:** The long and short positions offset each other's directional exposure.
  </Accordion>

  <Accordion title="Calendar Spreads" icon="calendar">
    **What it is:** Trading mispricing between different contract expiry dates.

    **How it works:** Sometimes the price difference between near-term and far-term contracts deviates from fair value, creating an opportunity.

    **Why it's market-neutral:** We're trading the relationship between contracts, not the direction of the underlying asset.
  </Accordion>
</AccordionGroup>

**Key principle:** All strategies are designed to be delta-neutral, aiming to remove directional exposure. Returns come from pricing opportunities, not from betting on prices going up or down. We may expand our strategy set over time as new opportunities emerge.

[Learn more about our strategy →](/strategy/overview)

## DeFi Composability

strUSD is a standard ERC-20 token, which means it's fully composable with the DeFi ecosystem:

| Use Case              | Description                                   |
| --------------------- | --------------------------------------------- |
| **Collateral**        | Use strUSD as collateral in lending protocols |
| **Liquidity**         | Provide liquidity in DEX pools                |
| **Yield Aggregation** | Integrate with yield optimizers               |
| **Transfers**         | Send freely to any Ethereum address           |
| **Building**          | Build applications on top of strUSD           |

*DeFi integrations are currently in development. See [DeFi Integrations](/resources/integrations) for updates.*

## Custody & Security

strUSD benefits from multiple layers of security:

| Component                 | Provider                | Description                         |
| ------------------------- | ----------------------- | ----------------------------------- |
| **Smart Contract Audits** | Sherlock and Nethermind | Comprehensive security audits       |
| **Security Monitoring**   | Hypernative + Internal  | AI-powered 24/7 threat detection    |
| **Proof of Reserves**     | Accountable             | Real-time, independent attestations |

All assets backing strUSD are held in institutional-grade custody:

* **On-chain**: Audited smart contracts with multi-signature controls
* **Off-chain**: Qualified institutional custodians with segregated accounts

## Risk Considerations

Like all yield-generating products, strUSD involves risk. Here's what to understand:

| Risk Type          | What It Means                         | How We Manage It                                                        |
| ------------------ | ------------------------------------- | ----------------------------------------------------------------------- |
| **Strategy**       | Yields vary with market conditions    | Diversification across multiple strategies                              |
| **Smart Contract** | Code may have vulnerabilities         | Audits by tier-1 firms, real-time security systems, bug bounty programs |
| **Market**         | Extreme conditions affect performance | Risk limits, stop-losses                                                |
| **Timing**         | Positions may take time to converge   | Patient execution, professional monitoring                              |
| **Liquidity**      | 7-day cooldown for unstaking          | Ensures orderly redemption for all token holders                        |

Past performance does not guarantee future results. See our [Risk Disclosures](/resources/risks) for complete information.

## Technical Details

For developers and integrators:

| Property              | Value                             |
| --------------------- | --------------------------------- |
| **Contract Standard** | ERC-20                            |
| **Decimals**          | 18                                |
| **Primary Network**   | Ethereum Mainnet                  |
| **Multi-chain**       | Native support via Chainlink CCIP |
| **Upgradeable**       | Yes (via proxy)                   |

### Multi-Chain Architecture

Like trUSD, strUSD will expand across chains via **Chainlink CCIP** using the **Cross-Chain Token (CCT)** standard:

* **Native bridging** - strUSD will move across chains through CCIP token pools without wrapped tokens. Ethereum will hold the canonical token behind a Lock & Release pool, and each new chain will use a Burn & Mint pool
* **Yield continues** - Your strUSD will keep earning no matter which chain it's on
* **EVM chains** - Support for major EVM-compatible chains planned
* **Defense-in-depth** - CCIP secures transfers with a decentralized oracle network and an independent Risk Management Network (RMN), plus per-lane rate limits

Contract addresses are available in our [Contracts](/resources/contracts) documentation.

## Next Steps

<CardGroup cols={2}>
  <Card title="Get Started" icon="rocket" href="/quickstart">
    Start staking in minutes
  </Card>

  <Card title="Get trUSD" icon="https://mintcdn.com/tori-a4f37b86/3H8dnTWjceeNc9vd/logo/trusd.svg?fit=max&auto=format&n=3H8dnTWjceeNc9vd&q=85&s=3c72b11855ed4df895cb78d07080fd17" href="/products/trusd" width="1024" height="1024" data-path="logo/trusd.svg">
    Get the base token first
  </Card>

  <Card title="Strategy Details" icon="brain" href="/strategy/overview">
    How yield is generated
  </Card>

  <Card title="Risk Disclosures" icon="triangle-exclamation" href="/resources/risks">
    Understand all the risks
  </Card>
</CardGroup>