USS vs eUSS
eUSS earns more yield than USS in the long-term, but also has slightly more volatility.
Last updated
eUSS earns more yield than USS in the long-term, but also has slightly more volatility.
Last updated
This just high-level information. Please read our documentation for additional in-depth explanation, historical data, and risk analysis.
Both USS and enhancedUSS (eUSS) are backed by delta-neutral position on Solana. Both stablecoins combine long positions of jitoSOL and are perfectly hedged 1:1 by Solana short positions. The difference here is that USS is hedged by spot Solana, while eUSS is hedged by SOL-USD perpetual contracts. Implications:
Both USS and eUSS receive yield from staking jitoSOL.
eUSS receives additional yield from the funding rate paid out by the SOL perpetual position. This funding rate is positive-biased, thus eUSS has a higher expected return than USS in the long term.
On rare occasions, this funding rate can turn negative.
Most of the time, funding rate is positive when SOL price goes up and negative when SOL price goes down. Thus, eUSS allows users to take a directional view on SOL price with very limited volatility.
Both USS and eUSS' values are stable and are not subject to movement in SOL price. Theoretically, USS cannot incur losses. USS' value is perfectly stable and subject to very limited risks outlined in the section.
In rare occasion of prolonged negative funding rates, eUSS can incur small losses due to negative funding fees eating into underlying assets' value. However, such occasions are rare and revert in the long term by definition. eUSS is subject to USS' risks with additional Funding Rate risks as outline in the section.
