Superblock
  • Protocol
    • Overview
    • Introduction
    • Problem Statement
    • Solution
    • Market Opportunity
    • Technology and Mechanisms
    • Superblock Ether (ETHx)
    • Superblock USD Staking
    • Tokenomics and Governance
    • Revenue Streams and Business Model
    • Staking and Rewards
    • Business Model
    • Use Cases and Partnerships
    • Partnerships
    • Roadmap and Future Development
    • Conclusion
    • References
  • Chain
    • Overview
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On this page
  • Overview
  • Performance
  • How Superblock USD Staking Works
  • Strategy Explained
  • Staking, Unstaking, and Claiming USDx
  • Staking USDx to Get sUSDx
  • Unstaking sUSDx to Get USDx
  • Claiming USDx
  • Example
  • Risks and Mitigations
  1. Protocol

Superblock USD Staking

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Last updated 7 months ago

Overview

Superblock USD (USDx) is an over-collateralized USD stablecoin index designed to maintain a stable value by leveraging a diversified pool of collateral assets. Superblock simplifies the process of earning returns by providing a seamless way to stake, unstake, and claim rewards, ensuring a user-friendly experience while maximizing potential profits. The Superblock Protocol utilizes a variety of cryptocurrencies and stablecoins to over-collateralize USDx, ensuring its stability and minimizing risk through careful asset management.

Performance

The performance of Superblock USD staking is driven by the protocol's ability to generate yield from multiple liquidity pools. By strategically allocating collateral assets across these pools, the protocol maximizes returns while maintaining the stability of USDx.

How Superblock USD Staking Works

Staking USDx allows users to earn yield through the Superblock Protocol's interest-generating mechanisms. The protocol uses collateral assets such as USDC, USDT, DAI, and SBX to over-collateralize USDx and generate returns by providing liquidity in various trading pairs.

Strategy Explained

The Superblock Protocol employs a hybrid approach to algorithmic stability, managing and reallocating funds within multiple liquidity pools. The protocol transitions through three phases to ensure stability:

  1. Collateralized Phase: Initially, USDx is fully backed by a basket of stablecoins assets such as USDC (32%), USDT (32%), and DAI (36%).

  2. Fractional Phase: As USDx is minted, the collateral ratio adjusts to USDC (32%), USDT (32%), DAI (35%), and SBX (1%).

  3. Algorithmic Phase: The protocol leverages algorithmic strategies to dynamically adjust the allocation and maintain stability.

The algorithm continuously monitors the stability of each token and reallocates funds as needed to maintain the desired collateral ratio and mitigate risks.

Staking, Unstaking, and Claiming USDx

Staking USDx to Get sUSDx

When users stake their USDx, they receive sUSDx in return, representing their staked position in the Superblock Protocol. The sUSDx tokens accrue yield over time based on the performance of the underlying collateral assets.

Unstaking sUSDx to Get USDx

To unstake, users simply convert their sUSDx back to USDx. The amount of USDx received reflects the original stake plus any accrued yield.

Claiming USDx

After 7 days, the user can claim their USDx along with any accrued interest. The waiting period allows the protocol to manage liquidity and ensure that funds are available for the user’s claim.

Superblock stablecoins are non-redeemable. Holding a USDx stablecoin does not guarantee the right to redeem it for any specific financial instrument or token at any time. The Superblock Protocol aims to stabilize the USDx price to $1 through various mechanisms but does not allow for direct redemption of Superblock stablecoins. Users can always sell Superblock stablecoins on the open market but cannot redeem them directly via the protocol.

Example

The example below shows how the staking, unstaking, and claiming process for Superblock USD (USDx) works, considering both staking rewards and the interest from the funding rate, thereby providing a comprehensive picture of the reward mechanisms.

Initial Setup

  • USDx: A stablecoin pegged 1:1 to USD.

  • sUSDx: Staked USDx, which represents a claim on the staking mechanism.

  • USDx Value: $1 per USDx.

Staking Process

  1. Staking: User stakes 100 USDx and receives 100 sUSDx.

  2. Rewards Accrual:

    • Over time, the staked sUSDx accrues rewards based on the performance of the underlying collateral assets and liquidity pools.

  3. Calculating Rewards:

    • The yield is calculated based on the interest generated from the liquidity pools involving assets like USDC, USDT, DAI, and SBX.

Unstaking Process

  1. User Initiates Unstaking:

    • The user initiates the process to convert 100 sUSDx back to USDx. This initiates a 7-day cooldown period.

Claiming USDx

  • After the 7-day unstaking cooldown, the user claims their USDx, which includes the initial amount staked plus any accrued rewards.

Example Summary

  • Staking: User stakes 100 USDx and receives 100 sUSDx.

  • Rewards: After 1 month, the user’s sUSDx has accrued rewards based on the performance of the underlying assets.

  • Unstaking: User initiates unstaking of 100 sUSDx, entering a 7-day cooldown period.

  • Claiming: After the 7-day unstaking cooldown, the user claims their USDx, including the rewards.

Risks and Mitigations

  1. Market Volatility: The protocol's algorithm dynamically adjusts the collateral ratio and reallocates funds to mitigate the impact of market volatility.

  2. De-pegging Risk: In case a collateral asset de-pegs or becomes unstable, the algorithm reallocates funds to more stable assets to preserve the value of USDx.

  3. Liquidity Risk: The protocol maintains sufficient liquidity in its pools to cover all redemption requests, ensuring that users can claim their USDx at any time without delay.

By employing these strategies and mechanisms, the Superblock Protocol aims to provide a stable and rewarding staking experience for its users.