USD*-P, the principal-protected version of USD* earning a fixed 5%
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.
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.
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.
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.
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. Withdrawal terms will be confirmed closer to public launch — Purple members with early access will be notified of any cooldown periods or fees.
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.
