sthUSD Yield Distribution (Coming Soon)

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.

It’s simple: hold thUSD, stake it to receive sthUSD, and earn real yield backed by diversified real-world assets. No auto-compounding loops. No farming gimmicks. Just actual returns from actual assets.

How sthUSD Works

1. User stakes thUSD into the sthUSD vault This converts their stablecoins into a yield-bearing version of thUSD.

2. thUSD is deployed into Tharwa’s diversified RWA portfolio Yield is generated from instruments like T-bills, UAE real estate, gold, and sukuk-style structures (in future vaults).

3. Yield is streamed back into the protocol Monthly performance is calculated net of fees and distributed to all sthUSD holders.

4. Rewards are vested automatically Users see their balances grow over time — without needing to claim or manually restake.

Where the Yield Comes From

All sthUSD yield is sourced from the protocol’s real-world asset exposure. This includes:

• Fixed-income returns from government debt

• Rental income or capital gains from real estate

• Commodity-linked returns (within capped allocations)

• 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

Feature	sthUSD	aUSDC / cDAI / rTokens
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

⚠️ 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.