> For the complete documentation index, see [llms.txt](https://docs.vetro.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vetro.org/products/svusd.md).

# sVUSD

sVUSD is the protocol's variable yield product. Users stake VUSD into the sVUSD ERC-4626 vault and opt into yield generation in exchange for a cooldown period before withdrawal.

## How It Works

The sVUSD vault's price-per-share (PPS) increases over time as yield is distributed. sVUSD holders redeem more VUSD than they deposited as PPS appreciates.

Yield is delivered through the **YieldDistributor** contract, which linearly drips rewards over a governance-configurable period. This drip mechanism prevents yield sniping — without it, an attacker could deposit immediately before a large yield distribution, capture a disproportionate share, and exit.

## Cooldown Period

Exiting sVUSD requires a mandatory cooldown period:

| Stage             | Duration      |
| ----------------- | ------------- |
| Initial config    | 7 days        |
| After drip proven | Target 3 days |
| Minimum           | 1 day         |

During cooldown, the user's shares are burned and the underlying VUSD is locked. Cooldown positions earn **zero yield** and are non-transferable. Users may cancel an active cooldown at any time before claiming, returning their shares to the vault and resuming yield accrual immediately.

Multiple withdrawal requests create independent cooldown tickets, each with its own timer.

## Protocol Rationale

sVUSD provides three structural advantages to the protocol:

* **Predictable Liquidity Horizon**: The Treasury can accurately forecast outflow velocity, enabling more aggressive yield deployment into longer-term strategies
* **Structural Depeg Resistance**: Every VUSD staked into sVUSD is removed from circulating supply on external markets, creating a structural floor for peg defense
* **Systemic Recovery Window**: The time-lock mechanism prevents reflexive panic-selling during market stress, giving the AMO and arbitrageurs time to re-equilibrate the peg

## Contract

| Network          | Address                                                                                                               |
| ---------------- | --------------------------------------------------------------------------------------------------------------------- |
| Ethereum Mainnet | [0x476310E34D2810f7d79C43A74E4D79405bd7a925](https://etherscan.io/address/0x476310E34D2810f7d79C43A74E4D79405bd7a925) |


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.vetro.org/products/svusd.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.