How It Works
eUSD is a yield-bearing token on SEI. It represents a pro-rata claim on a bankruptcy-remote segregated vault structure that holds the underlying yield sleeves (e.g., RWA yield, AI infrastructure yield, and SEI lending yield tokens) and reflects strategy performance through a periodically updated Net Asset Value (NAV), net of applicable fees.
Users interact with eUSD through two core flows:
Mint (instantaneous)
Redeem (request → queue → payout)
Mint (Instantaneous)
When you deposit a supported asset into Evolve to mint eUSD, the system mints eUSD at current NAV to your wallet, representing your pro-rata claim on the eUSD vault.
Redemption (Redeem Queue → Payout)
To redeem eUSD, you submit a redemption request which enters the RedeemQueue. You may cancel the request any time before it is processed.
Once processed:
the redeemed eUSD is burned, and
the underlying assets are transferred to the specified receiver wallet address (per the supported payout rails).
Yield Distribution
Yield is distributed by updating eUSD NAV to reflect portfolio performance, net of any applicable fees.
Positive performance (NAV ↑): If the new NAV is above the High Water Mark, the increase is not applied as a single step. Instead, the NAV update is vested over a defined epoch period, reducing the ability to front-run a known NAV jump by minting right before it or redeeming right after it.
Negative performance (NAV ↓): If the new NAV is below the current NAV, the NAV update is applied instantly, ensuring losses are reflected immediately. Even in this scenario, front-running is mitigated because redemptions can be configured to settle at the lower of Current NAV or End-of-Epoch NAV, preventing users from exiting at a temporarily higher NAV before accounting is finalized.
Redemption SLAs & Fees
Expected redemption processing times and all applicable fees are disclosed on the eUSD factsheet / product page, so users can evaluate liquidity and costs before minting.
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