hyUSD is the most decentralized stablecoin on Solana, pegged 1:1 to the US Dollar and backed by liquid staking tokens (LST). hyUSD benefits from direct redemption at any time, and the backing reserve is directly auditable on-chain at any time.

sHYUSD is the staked version of hyUSD that are deposited in the stability pool. This is a yield-bearing token, accruing amplified yield from the underlying assets backing the protocol.

The yield is derived exclusively from Liquid Staking Tokens (LSTs). Our amplification mechanism works by selectively directing yield away from other products—such as hyUSD and xSOL—which are also backed by LSTs but do not themselves accrue yield. As a result, all generated yield is concentrated and funneled directly into sHYUSD.

The stability pool is a component of Hylo’s risk management system.When you mint sHYUSD to earn yield, your hyUSD is deposited into the pool. If a sudden crash in SOL price brings the protocol’s collateral ratio below 130%, a portion of the stability pool is converted to xSOL, bringing the protocol back to a healthy state. Conversely, when the SOL price recovers, any residual xSOL in the pool is converted back to hyUSD.