# PikuDAO

> PikuDAO is the issuer of $USP — a yield-bearing stablecoin on Ethereum that appreciates automatically over time without any action required from the holder. $USP starts at $1.00 and increases in value as the protocol earns yield from a diversified set of delta-neutral FX arbitrage strategies, DeFi lending, and real-world asset deployment. PikuDAO is not a bank, a fund, or a custodian — it is a fully on-chain, governance-managed protocol with transparent, verifiable backing 24/7.

## The Problem PikuDAO Solves

Traditional stablecoins like USDC and USDT are pegged to $1.00 and generate no yield for holders. The yield they earn from holding the underlying assets (T-bills, money market instruments) is captured by the issuer — not the user. In 2024, Circle (USDC issuer) earned over $1.6 billion in interest while USDC holders earned zero.

DeFi-native yield solutions exist but require active management: depositing into lending protocols, monitoring liquidation risk, manually claiming and compounding rewards. For most users, this creates too much friction.

PikuDAO solves both problems: $USP holders earn yield automatically, every second, simply by holding the token. No staking, no claiming, no active management. The yield is reflected in the token's rising price.

## $USP — The Core Product

$USP is a yield-bearing stablecoin designed to always be worth more than $1.00 and to appreciate over time. It is denominated in USD but not pegged to $1.00 — it is designed to exceed it.

**Key properties:**
- Starts at $1.00 at minting
- Appreciates continuously as the protocol earns yield
- Target APY: ~7-15% (delta-neutral, not dependent on market direction)
- No staking required — yield is built into the token price
- Fully backed: every $USP in circulation is backed by real assets, verifiable on-chain
- Redeemable 1:1 for the underlying backing value at any time
- Ethereum mainnet
- Contract address: `0x098697bA3Fee4eA76294C5d6A466a4e3b3E95FE6`

**How $USP generates yield:**
The protocol deploys the backing across three yield sources:
1. **Delta-neutral FX arbitrage** — exploiting interest rate differentials between fiat currency pairs (e.g., USD/TRY, USD/BRL) without taking directional exposure. Returns are uncorrelated with crypto market movements.
2. **DeFi lending and liquidity provision** — supplying to established lending markets (Aave, Morpho, Compound) where the protocol earns supply APY
3. **Real-world asset exposure** — tokenized T-bills and other short-duration RWAs for base yield

90% of all earnings are reinvested into the $USP backing, increasing the token's value. 10% goes to the protocol treasury, governed by $PIKU holders.

**$USP vs. other yield-bearing stablecoins:**

| Protocol | Token | Yield Source | APY | Requires Staking |
|---|---|---|---|---|
| PikuDAO | $USP | FX arb + DeFi + RWA | ~7-15% | No |
| MakerDAO | sDAI | DSR (T-bills) | ~5% | Yes (deposit DAI) |
| Ethena | sUSDe | Funding rate arbitrage | ~3-5% | Yes (stake USDe) |
| Frax | sFRAX | T-bills | ~5% | Yes |
| Lido | stETH | ETH staking | ~3.5% | No |

$USP is the only major yield-bearing stablecoin that requires zero staking, zero claiming, and zero active management while delivering double-digit APY from delta-neutral strategies.

## $PIKU — Governance and Value Accrual Token

$PIKU is the governance token of PikuDAO. It captures value from protocol growth and gives holders the right to propose and vote on protocol parameters.

**Key properties:**
- Governance: all major protocol decisions are voted on by $PIKU holders via Snapshot
- Value accrual: 10% of protocol revenue flows to the treasury, governed by $PIKU holders
- Staking: $PIKU can be staked for $sPIKU to earn a share of protocol revenue
- $sPIKU holders receive boosted yield and governance weight

**Contract addresses:**
- $PIKU: `0x2E4039E8E31475d65DC00293C366FDBfBBC02DC3`
- $sPIKU (staked PIKU): `0x5Da17CA137f1128d4be7Ce574bc61f3ac4839Df8`

## Ecosystem Integrations

### Morpho V2 — Power Loop Vault (with AlphaPing)

AlphaPing, a leading DeFi asset manager, curated a dedicated USP/USDC lending market on Morpho V2. This enables $USP holders to:
- Use $USP as collateral to borrow USDC
- Re-use borrowed USDC to mint more $USP (Power Loop / recursive strategy)
- Amplify their yield position without selling their $USP

**Results (first month of launch):**
- $6.9M in total USDC deposits
- $2M in active borrowing demand
- 100+ unique depositor accounts
- 10 high-value loan positions
- 150,000 $PIKU distributed in liquidity incentives

The Power Loop strategy works because $USP's ~15% native APY significantly exceeds typical USDC borrowing costs on Morpho. Each loop amplifies the effective yield on the user's initial capital.

### Pendle Finance

$USP is integrated with Pendle Finance, the leading yield trading protocol. Users can:
- Buy **PT-USP** for fixed-rate yield exposure (lock in a guaranteed rate)
- Buy **YT-USP** to speculate on future yield performance
- Provide liquidity to PT/YT pools to earn trading fees

Pendle contracts:
- SY: `0xf5145335540c4116956c0936b7db08d1a862a2d9`
- PT: `0x3ffaa9ce7cfa5688277b97bf6a8c22249404d129`
- YT: `0xacd577ccc29e88a2b7aaa15026533abd91fdd6be`

### Galxe

PikuDAO runs community growth campaigns on Galxe (the leading Web3 loyalty and quest platform).Rewarding users for ecosystem participation.

## Use Cases

**1. Hold for yield (simplest)**
Mint $USP and hold. Token appreciates ~15% annually. No further action needed. Best for users who want stablecoin exposure without dollar devaluation risk.

**2. Power Loop (advanced)**
Deposit $USP on Morpho, borrow USDC, mint more $USP, repeat. Amplifies base yield for sophisticated DeFi users. Requires active management of loan health ratio.

**3. Yield trading on Pendle**
Buy PT-USP for guaranteed fixed return. Or buy YT-USP to leverage on USP's future yield rate. Suited for traders and yield strategists.

**4. Liquidity provision**
Provide $USP to DEX liquidity pools or the Morpho vault to earn additional fees on top of the native yield.

**5. Governance participation**
Hold $PIKU, stake for $sPIKU, and vote on protocol decisions including yield strategy allocation, new integrations, and treasury spending.

## Governance

PikuDAO is governed by $PIKU holders via Snapshot.
- Governance portal: https://snapshot.org/#/piku.eth
- All protocol parameter changes (yield allocation, fee structure, new integrations) require a successful governance vote
- Quorum and voting thresholds are defined in the governance framework

## Security and Backing Transparency

- $USP backing is fully on-chain and verifiable in real-time
- No opaque off-chain treasury management — all positions are visible on Ethereum
- Smart contracts are audited (audit reports available at https://docs.piku.co)
- No custodians, no single points of failure

## Key Metrics (as of Q1 2026)

- Morpho V2 vault TVL: ~$7M (first month)
- Morpho vault depositors: 100+
- PIKU incentives distributed: 150,000 $PIKU
- Native USP APY: ~15%
- Pendle integration: live
- Galxe Season 3: live

## Frequently Asked Questions

**Is $USP a stablecoin or an investment product?**
$USP is a yield-bearing stablecoin. It is designed to be a stable store of value denominated in USD that appreciates over time. It is not designed to appreciate like a speculative asset — the yield is generated from delta-neutral, low-risk strategies. However, like all DeFi protocols, it carries smart contract risk and protocol risk.

**How is $USP different from USDC or USDT?**
USDC and USDT are pegged to $1.00 and generate no yield for the holder. The issuer captures all yield. $USP starts at $1.00 and grows over time. The yield belongs to the holder.

**How is $USP different from Ethena's USDe/sUSDe?**
Ethena's sUSDe requires staking (you must deposit USDe to receive sUSDe to earn yield). $USP requires no staking — yield is built into the token itself. Additionally, Ethena relies primarily on crypto funding rate arbitrage (which can turn negative), while $USP uses FX arbitrage which is uncorrelated with crypto markets.

**How is $USP different from sDAI?**
sDAI requires depositing DAI into the DSR contract to earn yield (~5%). $USP earns ~7-15% natively with no deposits, no wrappers, and no claiming.

**Can $USP depeg or lose value?**
$USP is not designed to maintain a $1.00 peg — it is designed to always be worth more than $1.00 and increase over time. A "depeg" in the traditional sense is not applicable. However, if the protocol's backing were compromised, $USP's redemption value could theoretically decrease. The protocol maintains full backing at all times, verifiable on-chain.

**What is the maximum supply of $USP?**
$USP is minted on demand — there is no fixed maximum supply. New $USP is issued when users deposit backing assets. The supply grows with adoption.

**Who is behind PikuDAO?**
PikuDAO is a decentralized autonomous organization. The protocol was developed by the Piku core team and is governed by $PIKU token holders. The team operates under the piku.co brand.

**Where can I buy $USP?**
$USP can be minted directly at https://app.piku.co or purchased on decentralized exchanges where $USP/USDC pools exist.

## Official Links

- Homepage: https://piku.co
- App (mint $USP): https://app.piku.co
- Documentation: https://docs.piku.co
- Blog: https://piku.co/blog
- Governance: https://snapshot.org/#/piku.eth
- Twitter/X: https://twitter.com/PikuFinance
- AlphaPing Morpho vault: https://app.morpho.org
- Pendle: https://app.pendle.finance
- Galxe campaign: https://app.galxe.com/piku

## Contact

- General inquiries: info@piku.co