6. Automatic Yield Distribution to USTD Holders

6.1. Key Features & Unique Selling Points:

Fully Automated Yield Distribution:

• USTD features a fully automated yield distribution mechanism that operates on a predetermined schedule (e.g., daily or weekly).

Zero friction:

• Holding any positive amount of USTD is enough; there is no staking contract, time lock, or minimum‑activity requirement. Simply keep the tokens in a self‑custodied wallet to accrue rewards.

Decentralized Market-Driven Yields:

• The yield generated is not a fixed promise; instead, it emerges naturally from decentralized market forces—such as liquidity provision and arbitrage—ensuring that rewards reflect genuine network engagement.

6.2. How It Works

The yield generated from deployed collateral in stablecoin-to-stablecoin liquidity pools is split into two parts:

• 50% is distributed directly to every eligible USTD holder’s wallet as an airdrop.

• 50% is reinvested into automatic buyback and burn operations & reserve building.

No Staking Required:

• Unlike other yield-bearing protocols, USTD does not require users to lock up their tokens in a separate staking contract.

Transparency & Automation:

• The entire yield distribution process is fully automated via immutable smart contracts and executed on-chain. Furthermore, all yield outcomes are determined solely by predetermined code and decentralized market forces, ensuring there is no discretionary or centralized control over yield generation. This guarantees complete transparency, consistency, and reliability in reward distribution.

It is essential to emphasize that yield is not promoted as a primary selling point. Instead, yield emerges naturally from the decentralized market dynamics—such as liquidity provision and arbitrage—embedded within the protocol’s smart contract code. As such, yield returns are entirely subject to market conditions and smart contract mechanics, with no guarantee of fixed returns. USTD is offered on an “as is” basis, and all protocol decisions, including those impacting yield, are made collectively through decentralized governance.

6.3. Benefits

Effortless Income Generation:

• Users earn passive income automatically via on-chain yield airdrops—no manual staking or lock-up is required

Increased User Engagement:

• Automatic airdrops encourage users to hold USTD long-term, as the regular receipt of yield creates a steady income stream and reinforces the token’s value.

Ecosystem alignment:

• Because yield rises with trading activity in the underlying pools, every new integration (wallet, DEX, payment rail) amplifies returns for all holders.