Introducing sMONEY, our latest innovation designed to simplify and automate your financial experience. It brings you passive yield, simply through wrapping MONEY and holding sMONEY.
"Staked MONEY" (sMONEY) is a yield-bearing version of MONEY.
Users wrap MONEY to receive sMONEY, earning more USD (in $MONEY) over time.
sMONEY uses a share price model where 1 sMONEY == 1 MONEY initially. The exchange rate increases over time as interest accrues.
Where does the YIELD come from?
The MONEY paid as yield to sMONEY holders comes from the protocol's earned revenue. The percentage of revenue directed to sMONEY is inversely correlated with the price of MONEY - the further below $1 that MONEY trades, the higher the percentage of revenue paid to sMONEY.
The Ultimate Peg Keeper
In this way sMONEY acts as a tool to help maintain the peg; if MONEY trades too low, the sMONEY interest rate increases and encourages users to purchase and wrap MONEY.
The Logistics
sMONEY can be bridged to all chains, however wrapping and unwrapping is only possible on Optimism. Wrapping from other chains will be available soon once we create a ZAP to deposit from other chains, so stay tuned for that awesome UX feature.
Unwrapping MONEY involves a 7-day "cooldown period". A user first burns their sMONEY shares to initiate the cooldown, then waits a designated period, and then withdraws their MONEY.
sMONEY is standalone from MONEY staking in the Points program which earns points currently. They are two separate activities with different rewards!
Looking Forward
This is a huge advancement for the protocol and ecosystem at large.
sMONEY serves as not only a yield-generating and a peg-keeping mechanism but also a foundational primitive for the ecosystem. Protocols can build on top of it and further incorporate its yields into other interest-bearing assets, so stay turned for some cool feature in store!
So what are you waiting for? Jump in, start racking up yield, and help shape the future of DeFi. For more details on how $sMONEY works, check out the full breakdown here in our documentation.
Upwards and onwards,
Team @defi.money
About defi.money
WELCOME TO THE NEW DIGITAL ERA OF $MONEY
