Earn: receive premium for your USDG¶

Deposit USDG into a market's Money Pool. Your USDG stands behind the floor for that market's protection buyers; in return you receive your share of every premium.

What you earn¶

One income stream: premium. After the protocol share (see Markets and parameters), each protection's premium is released to the Money Pool second by second over the protection period, split by share, and claimable at any time. Premium is paid in the market's asset: the NVDA pool receives NVDA, the UNI pool receives UNI.

The premium rate moves with utilization: the busier the pool, the higher it is. It is not a fixed interest rate and no level of income is promised.

Your USDG principal is accounted purely in USDG. Premium is tracked separately and never interferes with deposits or withdrawals.

What the pool receives on delivery¶

When a protection is delivered, the pool pays out the reserved USDG at the floor and receives the protected asset, which is credited to you by share and claimable at any time. This is not income: part of your USDG has been converted into the asset, and the USDG paid out no longer counts towards your share value.

What you take on¶

Part of your USDG may be converted into the asset at 95% (NVDA) or 90% (UNI) of the price at which buyers entered. This happens when the price ends at or below the floor, and the asset you receive may be worth less than the USDG you gave up at that moment. Premium compensates for this risk; it moves with utilization and is not a promise of any return.

Depositing and withdrawing¶

Deposit any time. Each market's pool has a total cap (see Markets and parameters).
USDG in the pool is either reserved (backing live protection) or unreserved.
Withdrawal takes two steps: request, then execute after the withdrawal delay (see Markets and parameters). During the wait your share still carries risk and still receives premium. The amount you can take is limited to the unreserved USDG; anything beyond that keeps waiting and is released as protections expire.
Pool shares are not transferable.

Utilization and the premium rate¶

Utilization = reserved USDG ÷ USDG in the pool. The higher the utilization, the higher the rate new buyers pay. So as a depositor, the busier the pool the more premium you receive, and the less you can withdraw immediately. The product page shows utilization, the current rate and your withdrawable amount live.

Worked example¶

The NVDA pool holds 1,000,000 USDG and you deposited 100,000, a 10% share.

Of every premium the pool receives this week, 10% is yours, in NVDA.
If a protection expiring today is delivered, the pool pays 2,073.28 USDG and receives 9.92 NVDA; 0.992 NVDA is credited to you and your USDG share falls by 207.33.
You request a withdrawal of 50,000. Once the withdrawal delay has passed, if enough USDG is unreserved, all of it is paid out; otherwise part of it first.

All figures are illustrative.