How USDu Accrual Works

The process is straightforward. First, you deposit USDC to mint USDu tokens. Next, that USDC gets routed to the Fund Vault, where it's allocated between purchasing JLP positions and setting up hedges. The real magic happens in step three—your yield comes from two sources: JLP trading revenue and funding rate payments from the market.

Here's where it gets interesting for holders. All that yield flows into the staking contract, continuously increasing the value of your staked USDu (sUSDu). It's a compounding mechanism built right into the protocol. Deposit, earn, and watch your stake grow—that's the core loop.