> For the complete documentation index, see [llms.txt](https://delpho.gitbook.io/delpho-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://delpho.gitbook.io/delpho-docs/how-delpho-works/susdv-mechanics.md).

# sUSDV mechanics

sUSDV is the staked, yield-bearing form of USDV. It is an ERC-20 token that represents a share of the protocol's yield-producing balance sheet.

## Stake and unstake flow

| Action        | Effect                                                                                                              |
| ------------- | ------------------------------------------------------------------------------------------------------------------- |
| Stake USDV    | USDV is locked into the staking contract. The user receives sUSDV in proportion to their share of the staking pool. |
| Unstake sUSDV | The user returns sUSDV and receives USDV, plus accrued yield, subject to the redemption window if any.              |

## Yield accrual

Yield accrues continuously as funding is captured by the protocol's hedged position. The accrual mechanism is per-share, not per-balance, so a user's sUSDV balance does not change but the per-share value rises as yield accrues.

This means:

* A user holding 1,000 sUSDV at staking sees the dollar value of their position grow as yield accrues, while the sUSDV balance stays at 1,000.
* When the user unstakes, they receive USDV equivalent to their pro-rata share of the underlying USDV pool, including accrued yield.

### Worked example

A user stakes $10,000 of USDV when the price per share is 1.0000, receiving 10,000 sUSDV. Over time, the per-share value rises as funding accrues:

<table><thead><tr><th width="207">Point in time</th><th width="172">sUSDV balance</th><th>Price per share</th><th>USDV value of position</th></tr></thead><tbody><tr><td>Stake</td><td>10,000</td><td>1.0000</td><td>$10,000</td></tr><tr><td>After accrual</td><td>10,000</td><td>1.0150</td><td>$10,150</td></tr><tr><td>After additional accrual</td><td>10,000</td><td>1.0400</td><td>$10,400</td></tr><tr><td>Unstake</td><td>0</td><td>(closing at 1.0400)</td><td>$10,400</td></tr></tbody></table>

The sUSDV balance never changes. The dollar value of the position grows because each sUSDV is worth more USDV over time. **Numbers are illustrative, not a yield forecast.**

## What happens during negative funding

If funding compresses or flips negative, the per-share value can stop growing or temporarily decline. At V1, the treasury reserve absorbs the short-term gap so that sUSDV's per-share value is buffered against the immediate drag.

A programmatic pause on yield distribution is planned for a future release. When active, it will hold the per-share value flat during sustained negative-funding windows rather than letting it accrue negatively. Hedge inversion, flipping the perp leg to capture the spread the other way, is also planned.

The protocol does not borrow against future earnings to maintain a quoted yield. If the spread is negative and the reserve cannot fully buffer it, sUSDV simply does not earn.

## Composability

sUSDV is a standard ERC-20 token. The intent is for it to be used across HyperEVM in the same way other yield-bearing assets are used. Integrations are confirmed or in active discussion with:

* **Lending markets:** Morpho, HyperLend, Felix.
* **LP venues:** HyperSwap, others.
* **Structured-yield protocols:** Pendle (PT/YT), Spectra.
* **Treasury allocators:** DAOs and funds wanting passive Hyperliquid-derived yield.