Earn Yield with Stablecoin (shzUSD)
shzUSD is a receipt token issued by depositing hzUSD into the Stability Pool of Hypezion Finance.
shzUSD is a yield-bearing token issued by the Stability Pool. The pool aggregates yields and revenues generated from the protocol, with the value per shzUSD increasing over time beyond 1.00.
The act of "earning yield" in Hypezion Finance is not a traditional "deposit → receive interest" model, but rather an act of becoming part of the system that supports protocol-wide stability, with rewards distributed as compensation.
1. Overview
| Term | Description | Characteristics |
|---|---|---|
| hzUSD | Native stablecoin of Hypezion Finance. Source asset for Stability Pool deposits. | Price design around 1.00 backed by collateral |
| Stability Pool | Destination for hzUSD deposits. Protocol stabilization mechanism. | Aggregates collateral yields and fee revenues |
| shzUSD | Receipt token representing Stability Pool participation. | Converted value increases over time (share-based) |
shzUSD is not a staking token but a "share token." Your token quantity does not change; instead, the value per 1 shzUSD increases.
2. Prerequisites
- You must already hold hzUSD (see "Buy hzUSD" for details)
- Wallet connection: Rabby or other EVM-compatible wallet
- Network: HyperEVM must be selected
- Hold a small amount of HYPE (for gas fees)
3. Stake
Steps
- Open "Earn" from the app menu
- Click "Stake" on the hzUSD Staking screen
- Enter the amount of hzUSD to deposit in the hzUSD Amount field
- Confirm conditions in the Quote panel
- Click "Stake hzUSD" and sign in your wallet
- After approval, receive shzUSD
The received shzUSD represents your Stability Pool share and is a Yield-bearing Token where yield is reflected without special operations while holding. Therefore, shzUSD does not peg to 1 USD.
4. How Yield Accrues
Stability Pool revenue comes from real yields generated by collateral assets such as kHYPE.
This is proportionally distributed across the entire pool and automatically compounded within the pool, resulting in a gradual increase in value per 1 shzUSD.
Numerical Example
| Time | Pool Total Value | Total shzUSD Supply | Value per 1 shzUSD |
|---|---|---|---|
| Day 0 | $1,000,000 | 1,000,000 | $1.000 |
| Day 30 | $1,008,000 | 1,000,000 | $1.008 |
| Day 365 | $1,100,000 | 1,000,000 | $1.100 |
Yield is not fixed. It varies based on collateral yield, number of pool participants, and other factors.
5. Unstake
Steps
- Open "Earn" from the app menu
- Click "Unstake" on the hzUSD Staking screen
- Enter the amount of shzUSD to unstake in the shzUSD Amount field
- Click "Unstake shzUSD" and sign in your wallet
- After approval, hzUSD is returned to your wallet
Notes
- After withdrawal, an equivalent amount of shzUSD is burned.
- During congestion, immediate processing may not occur due to Queue/Limit mode.
- If fees apply, they are specified in "Fees & Limits."
6. Risks and Considerations
| Risk | Description | Mitigation |
|---|---|---|
| Smart Contract Risk | Bug or exploit possibility | Audited code, bug bounty program |
| Collateral Price Risk | bullHYPE mixing during Recovery Mode | Pool naturally rebalances to hzUSD over time |
| Liquidity Risk | Temporary withdrawal delays during congestion | Queue system, gradual processing |
| Yield Fluctuation | APY varies with market conditions | Diversified collateral, real yield base |
7. FAQ
Q1. Does the number of shzUSD I deposited increase?
A. No. shzUSD is a "share token," so the quantity is fixed. Instead, the "value per 1 shzUSD (converted amount)" increases.
Q2. Are there withdrawal fees?
A. Fees may apply depending on system conditions. Check Fees & Limits for current rates.
Q3. Can I trade shzUSD?
A. Yes. The token itself is transferable. However, since the converted value depends on the entire pool, trading prices may not reflect the converted value. Protocol-internal withdrawal is the most accurate valuation method.
Q4. What is the APY?
A. It varies. As a guideline, it correlates with market rates and collateral yields. The Estimated APY shown in the app is calculated based on the average data from the past 7 days.
Q5. Can I withdraw my deposited hzUSD at any time?
A. Yes. Withdrawal is generally possible at any time. However, during congestion, unstaking may temporarily take longer.
8. Why this Design
The Stability Pool is not merely a yield acquisition tool but the core mechanism supporting Hypezion Finance's stability itself.
To support the No Liquidation design where individual liquidations do not exist, a pool that absorbs and redistributes risk system-wide is necessary. Users deposit hzUSD into this pool, creating a structure where they contribute to stability while simultaneously earning rewards.
9. Important Notice
The backing asset of shzUSD is all assets in the Stability Pool. Stability Pool assets are fundamentally all hzUSD.
However, due to Hypezion Finance's mechanism, after Recovery Mode activation, a portion of the Stability Pool's hzUSD is converted to bullHYPE, meaning non-USD-pegged bullHYPE mixes into the Stability Pool, and consequently, bullHYPE partially mixes into shzUSD's backing assets. As hzUSD is deposited again into the Stability Pool or existing shzUSD holders unstake, the purity of hzUSD within the Stability Pool increases again, ultimately causing the majority of Stability Pool assets to naturally return to hzUSD, bringing the majority of shzUSD's backing assets closer to hzUSD.
Use shzUSD as a strategy to earn high yields while taking on these risks.