How chUSD works

Chateau USD - A synthetic dollar backed by private credit yields

chUSD and schUSD is built on a fork of Ethena USDe's codebase with minimal changes. We send much love and many thanks to our friends at ethena.fi for open sourcing their code.

Chateau USD (chUSD) is a synthetic dollar mintable with USDC, and USDT, with more collaterals to come. chUSD can be staked for schUSD, which earns yield from private credit strategies executed by Covenant VC. Learn more about Covenant VC here. More RWA vaults will be deployed in the coming months.

For schUSD, 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 Private Credit Overview page.

🧭 Risk Management Practices

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

• Ongoing transaction monitoring through GATEKEEPER_ROLE that can freeze and remove MINTER_ROLE when problematic transactions are detected

• 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 sell 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.