# FAQs

#### What is Evolve?

**Evolve** is the issuer of **eUSD** — a yield-bearing stablecoin on the **SEI** chain. eUSD is designed to deliver **stable, transparent yield** through a diversified portfolio of:

* **RWA yield**
* **AI infrastructure yield**
* **Onchain lending yield tokens on SEI**

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#### What is eUSD?

**eUSD is a yield-bearing token on SEI that targets USD stability while earning yield.**\
You hold a single token (eUSD) that represents a claim on a yield-generating portfolio managed under Evolve’s disclosed mandate and controls.

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#### Who is Evolve for?

Evolve is built for four types of users:

* **Capital Allocators** → simple yield exposure with clear redemption terms
* **Builders / Distribution Partners** → wallets, exchanges, fintechs, banks, wealth tech, LP networks offering “Earn”
* **Treasury & Finance Teams** → DAOs and corporates that need stable yield + reporting
* **DeFi Power Users** → users who want a yield-bearing stablecoin they can hold, redeem, and use across SEI DeFi

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#### What problem does Evolve solve?

Stable yield is fragmented and operationally complex (multiple venues, wrappers, liquidity constraints, and inconsistent reporting). Evolve makes yield:

* **Accessible** via a single yield-bearing stablecoin (eUSD)
* **Composable** across the SEI DeFi ecosystem
* **Measurable** with standardized NAV/APY and disclosure-driven transparency

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#### Where does the yield come from?

eUSD’s yield can come from three primary sources (allocation varies over time):

1. **RWA Yield**\
   Rate- and credit-driven yield from real-world asset exposure, structured and disclosed via eUSD documentation.
2. **AI Infrastructure Yield**\
   Yield generated from exposure to AI-infra cashflow opportunities (e.g., capacity / compute-linked yield structures), implemented through the product’s disclosed strategy sleeves and counterparties.
3. **SEI Lending Yield Tokens**\
   Onchain lending yields driven by borrow demand in SEI markets and protocols (via lending vaults / yield tokens).

Each sleeve’s **venues, drivers, and constraints** is shown on the eUSD transparency page / factsheet.

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#### Is the APY “real,” or does it include points and incentives?

Displayed APY reflects **realized, mark-to-market yield**.\
**Unrealized incentives** (points, airdrops, emissions) are **not included** in APY and are **additive** only if they materialize.

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#### What fees do I pay?

Displayed APY is **net of fees**. Fees are disclosed on the **eUSD factsheet** and may include:

* **Management fee** and/or **performance fee**

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#### How do I get started?

Typical onboarding flow:

1. Visit the **Evolve app** (eUSD page)
2. Connect your EVM wallet
3. Deposit supported collateral (as listed)
4. Mint **eUSD** (instantly)

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#### How long does redemption take?

Redemption can take **few hours to \~T+2** days.

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#### Do I need KYC/KYB? Who is eligible?

No

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#### Are there minimums, maximums, or caps?

No

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#### What does “yield-bearing stablecoin” mean?

It means you receive an **ERC-20 token (eUSD)** that aims to track USD value while earning yield through portfolio performance.

You can typically:

* **Hold** eUSD
* **Redeem** eUSD (per terms)
* **Use eUSD in DeFi** on SEI (LP, collateral, leverage looping, tranching, etc.), where supported

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#### Who manages the capital?

eUSD is managed under Evolve’s disclosed allocation framework. Evolve may rebalance across sleeves based on:

* Liquidity needs (redemption capacity)
* Risk limits (concentration, counterparty, protocol exposure)
* Market conditions (rates, spreads, onchain lending demand)

If third-party operators or counterparties are involved, their role and oversight are disclosed in the factsheet.

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#### How does Evolve handle custody and security?

Evolve uses institutional-grade controls where applicable, such as:

* **Segregated custody wallets** and policy-controlled signers
* **Segregated venue/protocol positions** for sleeve-level accounting
* **Least-privilege access**, approvals, monitoring, and incident playbooks

Custody/control models are disclosed per sleeve where relevant (especially for RWA and AI infra exposures).

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#### What risks should I understand?

Key risk categories include:

* **Market risk** (rates, spreads, credit)
* **Liquidity risk** (queues, redemption windows, market depth)
* **Counterparty risk** (issuers, custodians, borrowers, venues)
* **Smart contract / protocol risk** (SEI DeFi, integrations)
* **Operational risk** (controls, processes, execution)
* **Regulatory / eligibility risk** (jurisdiction restrictions, access constraints)

If the underlying portfolio loses value, **eUSD NAV can decline**.

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#### What happens in stressed markets or a black swan?

Behavior is product-defined and may include:

* **Redemptions moving into a queue**
* **Reduced risk exposure** / rotation toward higher-liquidity sleeves
* **Orderly unwinds** rather than forced liquidations

Illustrative example:

* eUSD TVL: **$100M**
* You hold: **$1M** (1% of supply)
* Instant liquidity drops from **100% → 20%**
* Remaining redemptions settle over a disclosed window (e.g., **T+2**)
* If NAV changes during unwinds, settlement occurs at the **updated NAV**

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#### Is APY net of fees?

Yes. Displayed APY is always **net of fees**.

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#### How is NAV (token price) calculated?

A standard definition:

**NAV = (Assets − Liabilities) ÷ eUSD Supply**

The eUSD factsheet should disclose:

* Pricing sources / valuation policy
* Any buffers/haircuts (if used)
* Treatment of accrued yield and costs

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#### How often is NAV updated?

NAV cadence is disclosed (commonly **daily**, sometimes **event-driven**).\
If an epoch-based update or anti-front-running mechanism exists, it will be disclosed. In general:

* NAV may update on a schedule for predictability
* Material downside updates may be applied immediately if specified

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#### Is eUSD a bank deposit or insured product?

No. eUSD is **not a bank deposit** and does not carry deposit insurance. It is a **tokenized yield product** governed by its disclosed terms and risk factors.

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#### What does transparency look like?

Where feasible, eUSD provides standardized disclosure of:

* **NAV, APY, TVL history**
* **Sleeve breakdown** (RWA vs AI infra vs SEI lending yield tokens)
* Counterparty / venue exposure (where applicable)
* Redemption liquidity and queue status
* Attestations / audit reports

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#### Can I borrow against eUSD?

Potentially, yes—if eUSD is listed or supported by SEI lending markets or partner venues such as Takara Lend, Yei and/or Morpho markets on SEI. Availability depends on ecosystem support and risk parameters set by those protocols.

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#### Is Evolve DeFi-native or institutional-grade?

Both: **institutional-style controls and disclosure**, with **DeFi-native distribution and composability** on SEI.

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#### Want to integrate eUSD into your product?

Evolve can support integration rails (as applicable):

* List eUSD in your app
* Display NAV/APY + key terms
* Enable mint + redemption flows (including request → processing if queued)
* Support DeFi utility paths on SEI where supported (collateral, LP, looping)