Rewards Distribution

How USDQ yield is calculated, distributed, and reflected in your balance

Overview

USDQ’s protocol distributes staking rewards transparently and efficiently through its ERC-4626 vault structure. Yields generated across all strategies are calculated daily, then distributed to stakers and restakers via two main mechanisms:

  1. Vault Yield Accrual for sUSDQ holders

  2. Boosted Rewards Allocation for users with locked restake positions (via NFT)

Daily Yield Calculation

At the end of each 24-hour cycle, the protocol aggregates yield from all active strategies. The total yield is used to mint new USDQ, which is then allocated as follows:

  • A portion is deposited into the sUSDQ vault, increasing the exchange rate of sUSDQ relative to USDQ — this benefits all stakers proportionally.

  • The remaining portion is staked into restake vaults, earmarked for users holding Boosted Yield NFTs (i.e., restakers).

Formula for Classic Stakers

Users staking via the base sUSDQ vault (i.e., without locking) earn passive yield via rising exchange rates.

User Yield = 
(User's USDQ Stake ÷ Total USDQ Staked) × Total Yield Distributed

Upon unstaking, users receive USDQ based on the updated sUSDQ-to-USDQ rate, which includes their share of accrued rewards.

Boosted Yield for Restakers

Users who locked their sUSDQ via Restaking receive an additional allocation of sUSDQ, which is:

  • Automatically added at maturity；

  • Based on tenure, amount, and protocol performance；

  • Redeemable by unlocking their ERC-721 NFT position。

After receiving boosted sUSDQ, users may continue earning standard vault yield by holding or restaking again.

Lock Window

To prevent late entries or exits from distorting rewards:

  • The protocol enforces a brief “lock window” each day during which staking/unstaking may be paused.

  • Final APY values are published after the day’s distribution is completed.

  • Early exits before finalization may result in partial yield forfeiture for that day.

USDQ's reward distribution framework is designed to be transparent, automated, and fair, ensuring accurate yield sharing for both passive stakers and long-term restakers.

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