USST Staking Mechanics
To participate in governance, holders of USST must either:
- Stake their tokens (regular governance participation)
- Or time-lock them for a fixed duration to receive sUSST, a boosted version of USST
What’s the difference?
- USST gives basic governance rights and eligibility for protocol rewards.
- sUSST gives greater voting power and a higher share of protocol earnings, depending on how long the token is locked.
Time-locking is voluntary, but those who lock USST for longer durations (e.g. 6 months, 1 year) show long-term alignment with the protocol and receive proportionally greater influence and incentives.
This mechanism:
- Discourages short-term manipulation of votes
- Encourages deeper engagement from long-term holders
- Strengthens governance participation by rewarding patience and commitment
Stakers (USST or sUSST) are eligible to receive:
- A share of protocol fees (from yield, minting, and LAMP)
- Priority in new vault launches and early access to governance proposals