USH Staking Module

The USH Staking Module allows users who are seeking to earn passive income on their USH holding to stake it and receive the interest-bearing token version of it, sUSH. It works in a similar fashion with sEGLD, where the rewards from different sources are reinvested back in the Staking Module to increase the price of sUSH relative to USH.

The increase in price doesn’t rely on a liquidity mining program, but it derives from well-thought-out and sustainable revenue sources such as:

  1. Minting Fees From the Lending Protocol: Fees generated through the Lending Protocol are injected back into the USH Staking Module.

  2. Isolated Pools Revenue: A significant portion of revenue comes from the EGLD collateral in the Isolated Pool. This EGLD is deposited in the Liquid Staking Module and then supplied to the Lending Protocol, where it earns a base APY on top of staking rewards.

  3. Boosted Vaults Streaming Fee: Revenue is also sourced from the streaming fee applied in the Boosted Vaults, adding another layer of income to support the sUSH yield.

Through this diverse and robust revenue generation model, the USH Staking Module not only offers an attractive yield on sUSH but also ensures that the yield is sustained and supported by actual economic activities within the protocol.

Consider this scenario for a clearer understanding:

Suppose EGLD is priced at $70, and in an isolated pool, $50 million of it is used as collateral. Now, let's say 40% of this collateral is utilized to mint sUSH, which equates to $20 million. If sUSH has a staking APY of 14% and the price of EGLD suddenly rises to $700, the value of the rewards from the staked collateral would also increase by a factor of ten.

As a result of this price jump, it would be possible to offer an APY of 140% on sUSH. This high APY incentivizes users to mint additional sUSH and to contribute more collateral to the system. This process ensures that the minting of USH keeps pace proportionally with any increases in the value of EGLD, maintaining a balance in the APY with each price change.

Upon the strategic expansion to additional blockchain ecosystems, the Hatom Protocol v2 will incorporate a diverse array of Liquid Staking Tokens (LSTs) including, but not limited to, stETH, cbETH, and rETH, alongside liquid derivatives of SOL, AVAX, and other native tokens from the respective ecosystems.

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