sthUSD Yield Distribution (Live)
Status: Live and Audited - Currently operational on Ethereum mainnet
Holding stablecoins has historically meant sacrificing yield in exchange for stability. With sthUSD, that tradeoff disappears.
sthUSD is a yield-bearing token that distributes returns from Tharwa’s real-world asset portfolio directly to users passively, transparently, and without the need to lock capital in high-risk strategies.
Now Live: Stake thUSD to receive sthUSD and earn real yield backed by diversified real-world assets. Features instant withdrawals, zero entry/exit fees, and automatic compounding. Built on ERC-4626 standard with Tharwa optimizations.
How sthUSD Works
User stakes thUSD into the sthUSD vault This converts their stablecoins into a yield-bearing version of thUSD.
thUSD is deployed into managed allocations and RWA strategies For early vaults, yield comes from managed allocations by Tharwa's investment partners and structured capital deployment into productive strategies.
Yield is distributed to sthUSD holders Returns are calculated and distributed proportionally to sthUSD holders through automatic balance growth.
Rewards are vested automatically Users see their balances grow over time — without needing to claim or manually restake.
Where the Yield Comes From
sthUSD yield is real and transparent, sourced from the diversified portfolio backing thUSD:
Current Sources:
Sukuk instruments - Faith-aligned fixed income structures
UAE real estate - Regulated property investments with rental income
Gold holdings - Inflation hedge and store of value
Managed allocations - Professional investment strategies by Tharwa's partners
Future Sources:
Confluence Engine optimization - AI-assisted portfolio rebalancing (in development)
Infrastructure assets - Tokenized real-world infrastructure yields
Commodity exposure - Capped allocations for uncorrelated returns
Sukuk-style earnings in future faith-aligned vaults
Yield is realized off-chain, routed through the protocol treasury, and reallocated back to sthUSD holders on-chain.
Transparency & Distribution
All yield is accounted for monthly and made visible through:
On-chain metrics for sthUSD accrual
Treasury dashboards
Performance snapshots of the backing portfolio
To preserve fairness:
100% of the net thUSD yield (after deducting the risk-free baseline) is used to either reward sthUSD holders or strengthen protocol reserves
The yield is distributed proportionally based on time-weighted stake
Rewards are vested over time to reduce gaming or rapid unstaking
Why sthUSD Beats Other Yield Wrappers
Backed by Real-World Assets
Yes
Mostly crypto lending
Passive Yield Distribution
Auto-vested
Requires manual harvesting
Tail-Risk Optimized Returns
CVaR + AI engine
Fixed pool rates
Institutional-Ready
Transparent & auditable
Protocol-dependent risk
Who Is sthUSD For?
Retail users who want to earn passively while holding a stablecoin
DeFi protocols looking to use sthUSD as yield-bearing collateral
DAOs and treasuries seeking composable, low-risk yield strategies
Long-term holders looking for risk-adjusted, real-world yield
Important: While Tharwa is building faith-aligned vaults for future phases, sthUSD currently includes yield from interest-bearing global market strategies and should not be considered Shariah-compliant.
For users seeking Shariah-compliant returns, Tharwa plans to introduce isolated sukuk-style vaults and segregated yield distribution options as part of its long-term roadmap.
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