Yield Distribution

Yield Distribution on sDUSD

sDUSD is Delta Money’s non-rebasing, yield-bearing staking token, distributed to users who stake DUSD through the Delta Save program. Its design ensures a transparent and predictable mechanism for reward accrual while drawing yield from multiple institutional-grade revenue streams.

sDUSD: Yield Distribution Cycle

Reward Payout Cycle and Vesting Schedule

sDUSD rewards are distributed in DUSD at fixed eight-hour intervals. Once distributed, these rewards are linearly vested every second over the subsequent eight-hour period, enabling a smooth and continuous reward experience. This vesting mechanism offers enhanced clarity and transparency to institutional participants, allowing them to track and model earnings with precision.

Funding-Based Yield Generation

A significant portion of the yield distributed to sDUSD holders originates from positive funding payments on both centralized and decentralized exchanges. Delta Money systematically opens delta-neutral short perpetual positions across leading trading venues on assets such as BTC, ETH, BNB, and SOL. The funding payments received depend on:

• The prevailing funding rates on each venue and asset

• The scale of Delta Money’s open positions in the respective markets

These funding rates are inherently dynamic and influenced by leverage demand in cryptocurrency markets, allowing Delta Money to capture variable but potentially high-yielding revenue streams, particularly during periods of heightened speculative activity.

Yield from Yield-Bearing Reserve Assets

In addition to funding-based income, Delta Money allocates a portion of its reserves into yield-bearing stablecoins and liquid staked assets. These include institutional-grade assets such as sUSDS and USTB, each offering exposure to real-world and DeFi-linked yields. The return on these assets is a function of:

• The annual percentage rate (APR) of the underlying stablecoin or staking asset

• Delta Money’s risk-adjusted exposure to each instrument

This stable, yield-generating strategy contributes a predictable income stream to the protocol, further supporting sDUSD rewards with diversified and lower-volatility returns.