> ## Documentation Index
> Fetch the complete documentation index at: https://docs.denar.markets/llms.txt
> Use this file to discover all available pages before exploring further.
# Staking: sdUSD
> Stake dUSD into sdUSD, a standard ERC-4626 vault share whose price only rises in dUSD terms. Rewards vest linearly over seven days, so there is never a distribution to snipe.
Not yet live. This page documents the deployed behavior of the staking contract; the live rate will be shown in the app at launch, and never promised in advance.
sdUSD is where the reserve's earnings go. Stake dUSD, receive vault shares at the going price, and every harvest from then on raises what a share is worth. Unstake whenever you like — there is no lock and no cooldown.
## Why unstaked dUSD earns nothing
This is the system's engine, so it is worth saying without spin: the reserve earns on **every** dUSD in circulation, but pays only the staked ones. A dUSD sitting in a wallet, a liquidity pool, or a collateral position contributes its share of reserve income to the stakers who opted in. The more dUSD lives its life *as a dollar*, the higher the staking rate sits above the reserve's raw yield.
That is the same architecture used by the largest reserve-backed dollars in DeFi — a base token that stays boring, and a staking wrapper that concentrates the yield.
## The seven-day drip
Harvested rewards are not credited at once. Each distribution is transferred into the vault and **vests linearly over seven days**; a new distribution folds any still-unvested remainder into a fresh seven-day round, so the share price is a smooth, continuous line rather than a staircase.
The consequences are exactly the ones you would want:
* **No sandwich.** Staking one block before a harvest captures nothing instant — you collect only your pro-rata slice of the drip for as long as you stay.
* **No cliff on exit.** Unstaking mid-drip pays the vested share price at that moment; nothing you have already accrued can be taken back.
* **Multiple payers, no coordination.** The T-bill harvest and the lending harvest land whenever they are ready; the vault folds them together.
## Mechanics worth knowing
| Property | Behavior |
| ---------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- |
| Standard | ERC-4626 — composable anywhere vault shares are |
| Share price | Non-decreasing in dUSD terms; there is no loss-socialization path into the vault |
| Cooldown | None — unstake anytime |
| Minimum position | The vault enforces a small minimum total stake (1 dUSD) as dust-attack protection |
| Rewards accepted | Only from the treasury and the allocator, and only while stakers exist |
| Performance fee | A capped slice of each harvest (hard cap 50% in the contract; the launch value will be published here) goes to the protocol; the rest is the drip |
## What the rate will look like
No number is promised, but the shape is knowable: the staking rate is the reserve's net income divided by the *staked* fraction of supply. Reserve income today means the net T-bill rate on the SGOV sleeve plus borrower interest on the vault sleeve; the staked fraction is the market's choice. The app will show the realized rate, computed from what was actually distributed — the only version of an APY Denar is willing to print.