Chateau
  • OVERVIEW
  • Core Tokens
  • LEGAL
    • Manager and Issuer Responsibilities
    • Terms of Use
    • Privacy Policy
  • Roles
    • chUSD and schUSD roles
    • Chateau
    • Managers
    • Ambassadors
  • USDtb
  • Using the front end
  • PROTOCOL MECHANICS
    • Issuance
    • Redemption
  • chUSD 101
  • How chUSD works
    • Approved Collateral
    • schUSD
    • chUSD and schUSD minting mechanisms
  • Fund Partner: Covenant VC
  • Where's the yield coming from?
  • How Liquid is it?
  • ⚖️ Peg Stability & Arbitrage Mechanism
  • ⚠️ Risks & Disclosures
  • Security
    • Custodians
    • Audits
    • Smart Contracts
      • Audits
  • Private Credit Overview
    • What is private credit?
    • Sub-Markets
  • PreIPO Late Stage Venture Overview
    • 🚀 What Is Late-Stage Venture / Pre-IPO Investing?
  • FAQ
  • What is an approval transaction?
  • Media Assets
  • Troubleshooting
    • Contact Us
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How chUSD works

Chateau USD - A synthetic dollar backed by private credit yields

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Last updated 1 day ago

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chUSD and schUSD is a fork of Ethena USDe with minimal changes We send much love and many thanks to our friends at ethena.fi for sharing the fruits of their labor.

Chateau USD (chUSD) is a synthetic dollar mintable with USDC, and USDT. Chateau holds 100K-200K in our hot wallet available for immediate redemption. The rest of chUSD is invested in BlackRock's BUIDL Short term US treasuries fund with next day redemption. chUSD can be staked for schUSD, which earns yield from private credit strategies.

Chateau partnered with Covenant VC, a New York City based hedge fund, to deliver their private credit portfolio with exceptional high Sharpe returns onchain. To learn more about various types of assets in the Private Credit market, please visit the page.

🧭 Risk Management Practices

  • All collateral positions are tracked and reported transparently through our oracle partner Pyth

  • Chateau uses institutional custodian: Copper.co and independent legal structuring

  • We publish on-chain proof of assets, audit trails, and risk parameters when available

  • Redemption policies are structured with thresholds and liquidity buffers

Users are currently able to:

  • Permissionlessly Acquire chUSD. Access external AMM pools to acquire or dispose of chUSD with assets such as USDT or USDC.

  • Direct Mint chUSD. Transfer accepted reserve assets and receive chUSD, subject to clearing KYC/KYB checks exclusively for approved market making counterparties. See Supplemental chUSD Terms and Conditions.

  • Direct Redeem chUSD. Burn chUSD & receive backing assets, subject to clearing KYC/KYB checks exclusively for approved market making counterparties. See Supplemental chUSD Terms and Conditions.

  • Stake & Unstake chUSD. Receive rewards from protocol revenue. Available exclusively for users in permitted jurisdictions.

Private Credit Overview