> For the complete documentation index, see [llms.txt](https://perena.gitbook.io/perena/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://perena.gitbook.io/perena/products/usd-protected.md).

# USD\* Protected

USD\*-P, the principal-protected version of USD\* earning a fixed 5%

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#### 1. What is USD\* Protected ( USD\*-P?)

USD\*-P is the principal-protected version of USD\* earning a fixed 5% , with an initial capacity of 1 million USD, It is designed for depositors who want to earn yield on their stablecoins while preserving downside. If the USD\* depegs, USD\*-P holders are subject to reimbursement from an insurance fund.

You still earn yield from the same underlying pool, but your capital has a buffer standing in front of it.

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#### 2. How does it work?

When you hold USD\*-P, your deposit continues to earn at 5% APY yield generated by USD\*. The position is protected up to 100% of principal capital.

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#### 3. What are the underlying assets?

| Asset | Role                                                           |
| ----- | -------------------------------------------------------------- |
| USD\* | The yield-bearing token representing your position in the pool |

USD\*-P is not a separate token you buy on the open market — it's a protected position within the existing USD\* ecosystem.

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#### 4. What are the risks?

USD\*-P is a **low-risk** position by design. In the scenario of loss of funds, the protocol will determine the amount of losses and provide reimbursement within 6 months of realized losses.

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#### 5. How do withdrawals work?

USD\*-P withdrawals follow the same mechanics as standard USD\* redemptions. You can redeem for any of the underlying stablecoins at any time.

USD\*-P withdrawals are free. No redemption fee applies.

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#### 6. Who is this for?

USD\*-P is for depositors who prioritize capital preservation over maximizing yield. If you want your stablecoins to earn more than sitting idle, but you're not comfortable absorbing first-loss risk, this is the right product. It's the choice for treasuries, conservative allocators.