> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usmewe.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Trust Vault Overview
> The protocol liquidity pool - stake USDC, earn yield, enable lending
# Trust Vault
The **Trust Vault** is usmewe's core liquidity mechanism, inspired by [3Jane](https://3jane.xyz). It allows users to stake USDC to earn yield while providing liquidity for protocol lending.
## How It Works
```
┌─────────────────────────────────────────────────────────────┐
│ STAKERS (Supply) BORROWERS (Demand) │
│ Deposit USDC ────────────────► Borrow based on Score │
│ Receive tmUSDC 0% collateral required │
│ Earn yield (~5-10% APY) Variable rate 0-5% │
└─────────────────────────────────────────────────────────────┘
│
┌─────────────────────────────────────────────────────────────┐
│ INSURANCE POOL (Separate) │
│ ├── Funded by 10% of each transaction │
│ ├── Covers 80% of defaults │
│ └── Surplus redistributed to contributors │
└─────────────────────────────────────────────────────────────┘
```
## Key Features
Deposit USDC and receive tmUSDC (Trust Mint USDC) receipt tokens
5-10% APY from borrower interest payments
Borrow based on Trust Score, no locked assets
10% fee funds Insurance Pool covering defaults
## tmUSDC Token
When you stake USDC, you receive **tmUSDC** (Trust Mint USDC):
* **1:1 initial ratio** - Deposit 100 USDC, receive 100 tmUSDC
* **Yield-bearing** - tmUSDC value increases as borrowers pay interest
* **Redeemable** - Exchange tmUSDC back for USDC + accrued yield
* **Transferable** - tmUSDC can be sent to other wallets
```typescript theme={null}
// Example: Staking 1000 USDC
const depositAmount = 1000;
const exchangeRate = 1.0; // Initial rate
const tmUSDCReceived = depositAmount / exchangeRate;
// Result: 1000 tmUSDC
// After 1 year at 8% APY
const newExchangeRate = 1.08;
const usdcOnWithdraw = tmUSDCReceived * newExchangeRate;
// Result: 1080 USDC
```
## Interest Rate Model
The vault uses a **utilization-based interest rate model**:
| Utilization | Borrow Rate | Supply APY |
| ----------- | ----------- | ---------- |
| 0-50% | 2% | \~1% |
| 50-80% | 3-5% | \~3-4% |
| 80-95% | 5-10% | \~5-8% |
| 95-100% | 15%+ | \~10%+ |
Higher utilization = higher rates for both borrowers and stakers. The model incentivizes new deposits when liquidity is low.
## Risk Considerations
Staking in the Trust Vault carries risks. Please understand them before depositing.
| Risk | Mitigation |
| ----------------------- | ------------------------------------------------- |
| **Smart Contract Risk** | Audited by \[Auditor], bug bounty program |
| **Default Risk** | Insurance Pool covers 80% of defaults |
| **Liquidity Risk** | Utilization model ensures withdrawal availability |
| **Protocol Risk** | Governance can adjust parameters |
## Quick Links
How to stake USDC
How to borrow from the Vault
How defaults are covered
Technical implementation