Products
$sMUSD
Staked Memento USD. Earn 15-17% APY by staking $MUSD in Memento Engine to access institutional commodity finance yields.
Overview
$sMUSD (Staked Memento USD) is the yield-bearing receipt token you receive when staking $MUSD in Memento Engine. It represents your staked position and accrues value over time as yield is generated from institutional commodity finance.
15-17%
Total APY
0%
Stake/Unstake Fee
1:1
Redeemable
SPL
Token Standard
What is $sMUSD?
$sMUSD is a yield-bearing receipt token that represents your staked $MUSD position in Memento Engine. It uses a tokenized vault model where its value increases relative to $MUSD as yield accrues.
Key Properties
- Value-accruing: $sMUSD increases in value relative to $MUSD over time
- Always redeemable: Unstake $sMUSD → $MUSD anytime (0% fee)
- Transferable: Send $sMUSD to any wallet, recipient keeps earning yield
- Composable: Use in DeFi protocols that support $sMUSD
Two Layers of Yield
$sMUSD earns yield from two distinct sources, stacking to deliver 15-17% total APY:
| Layer | Source | APY Contribution |
|---|---|---|
| Base Yield | $MUSD vault reserves (60% deployed in 9-14% APY vaults) | ~8-10% |
| Additional Yield | Memento Engine commodity finance | +6-8% |
| Total | Combined yield to $sMUSD holders | 15-17% |
How It Works
When you stake $MUSD, you continue earning the base yield that $MUSD generates from vault reserves. On top of this, your staked position gains exposure to Memento Engine's institutional commodity finance pools (trade finance, collateralized lending, producer bonds). The combined yield is reflected in the increasing exchange rate between $sMUSD and $MUSD.
Yield Variability
How to Stake
Get $MUSD
First, swap USDC for $MUSD on the Memento dApp. A 1% fee applies to the swap.
Navigate to Memento Engine
Go to the Memento Engine staking interface on the Memento dApp.
Enter Stake Amount
Enter the amount of $MUSD you want to stake. There is no minimum stake amount.
Confirm Transaction
Review the transaction details. Staking has 0% fee. Confirm in your wallet.
Receive $sMUSD
Your $sMUSD will appear in your wallet. It immediately starts accruing yield from both base $MUSD yield and Memento Engine commodity finance.
How to Unstake
Unstaking converts your $sMUSD back to $MUSD, including all accrued yield:
Navigate to Memento Engine
Go to the Memento Engine interface and select the Unstake tab.
Enter Unstake Amount
Enter the amount of $sMUSD you want to unstake. You can unstake any amount.
Review Exchange Rate
The interface shows the current $sMUSD → $MUSD exchange rate. If you staked 1,000 $MUSD and it has grown to 1,160 $MUSD value, you receive 1,160 $MUSD.
Confirm Transaction
Unstaking has 0% fee. Confirm the transaction in your wallet.
Receive $MUSD
Your $MUSD (including yield) will appear in your wallet. You can hold it to continue earning base yield or swap back to USDC (1% fee applies).
Exchange Rate Mechanics
$sMUSD uses a value-accruing model where the exchange rate increases over time:
EXAMPLE: 16% APY over 1 year
DAY 0 (Initial Stake)
- • Exchange rate: 1 $sMUSD = 1.000 $MUSD
- • You stake: 1,000 $MUSD
- • You receive: 1,000 $sMUSD
DAY 365 (1 Year Later)
- • Exchange rate: 1 $sMUSD = 1.160 $MUSD
- • You unstake: 1,000 $sMUSD
- • You receive: 1,160 $MUSD
Your $sMUSD quantity stays the same, but each token is worth more $MUSD.
No Rebasing
$sMUSD vs $MUSD
Understanding when to hold $MUSD vs $sMUSD:
| Feature | $MUSD | $sMUSD |
|---|---|---|
| APY | ~8-10% | 15-17% |
| Yield Source | Vault reserves (9-14% APY) | Vaults + Commodity finance |
| Swap to USDC | 1% fee | Unstake first (0%), then swap (1%) |
| DeFi Usage | Broad support | Growing support |
| Best For | Flexibility, quick exits | Maximum yield |
When to Use Each
- Hold $MUSD: If you need flexibility to swap back to USDC quickly, or want to use $MUSD in DeFi protocols that do not support $sMUSD yet.
- Stake for $sMUSD: If you want maximum yield and plan to hold for longer periods. The additional 6-8% APY compounds significantly over time.
Yield Sources
The additional yield in $sMUSD comes from Memento Engine's institutional commodity finance pools. For detailed information on each pool, see the Memento Engine documentation.
Pool Overview
- Trade Finance (40%): Pre-export financing to commodity producers, secured by physical shipments (10-15% APY)
- Collateralized Lending (35%): Overcollateralized loans to commodity traders (8-12% APY)
- Producer Bonds (15%): Investment-grade corporate bonds from major producers (5-8% APY)
- Liquid Reserve (10%): For instant unstaking requests (3-5% APY)
Risk Considerations
While $sMUSD offers attractive yields, users should understand the risks involved. Higher yields come with higher risks:
Smart Contract Risk
$sMUSD relies on smart contracts for staking and yield distribution. While audited, smart contracts may contain undiscovered vulnerabilities.
Credit Risk
Yield from Memento Engine depends on borrowers repaying loans. Defaults could impact yield. We mitigate this through overcollateralization (120%+) and diversification across multiple borrowers. Emerging market borrowers carry higher default risk than developed market counterparts.
Liquidity Risk
Large unstaking requests may experience delays if the liquid reserve is temporarily depleted. The 10% liquid reserve is designed to handle normal redemption volumes.
Commodity Price Risk
Physical commodity collateral is subject to price volatility. Rapid price declines could result in undercollateralization before liquidation can occur.
Regulatory Risk
Changes in regulations could impact the operation of Memento Engine or the availability of $sMUSD in certain jurisdictions.
Not FDIC Insured
Technical Implementation
$sMUSD is implemented as an SPL token on Solana with a tokenized vault model:
| Property | Value |
|---|---|
| Token Standard | SPL Token |
| Blockchain | Solana |
| Decimals | 6 (same as USDC) |
| Transferable | Yes |
| Program Address | TBA (launching Q1 2026) |
Exchange Rate Oracle
The $sMUSD → $MUSD exchange rate is updated on-chain as yield accrues. The rate only increases (or stays flat during low-yield periods). It never decreases under normal operation, ensuring your $sMUSD is always worth at least as much $MUSD as when you staked.
Coming Q1 2026