A comprehensive Startale USD guide covering on-chain yields, liquidity, and STAR points

Within the Startale ecosystem, startale usd provides users with a digital asset pegged to the US dollar, supporting payments, savings, and liquidity incentives across the entire application.

What is Startale USD (SEC)?

Startale USD (SEC) is a stablecoin issuance fully backed by the US dollar, developed by the Startale Group and built on the universal stablecoin platform M0. This digital dollar is backed by short-term US Treasury bonds and is issued through mechanisms designed to always safeguard user assets.

Each unit of USDSC represents a claim on reserves held in bankruptcy-remote vehicles. Moreover, the structure is designed to keep user assets separate from the issuer’s balance sheet, thereby reducing counterparty risk for token holders.

How to acquire and use Startale USD

Users can acquire Startale USD directly through the Startale App, where purchases of USDSC can be made using US Treasury or Ethereum, with transactions processed natively on-chain. After purchase, holders can immediately deploy the stablecoin into multiple integrated features.

After purchasing USDSC, there are several ways to use it. You can deposit it into the in-app vault to earn attractive yields, provide liquidity to the Startale USD pool on Uniswap to accumulate STAR Points, or trade it for other assets within the app. Additionally, the Startale App is expected to launch more USDSC use cases soon.

Reserves, transparency, and USD equivalence

To maintain a 1:1 peg with the US dollar, each unit of Startale USD is fully backed by short-term US Treasury assets placed in a bankruptcy-remote structure. This design ensures that even in the event of default, users can still access the underlying collateral.

USDSC reserves are monitored by independent institutions, which continuously verify that reserves match the circulating supply on a 1:1 basis. Additionally, users can view reserve levels and collateral composition at any time via the M0 Dashboard, providing ongoing transparency and clear proof of solvency.

There are no restrictions on Startale USD, meaning users can access and withdraw their USDSC at any time, allowing flexible movement of funds between vaults, liquidity pools, or external platforms and wallets.

Scope of Startale USD usage

USDSC is designed to serve as the default stablecoin within the Startale App ecosystem, supporting seamless on-chain payments, transfers, and savings across different integrated products. As the ecosystem expands, its coverage is expected to grow significantly.

Within the app, users can use USDSC for payments via mini-programs (coming soon) or securely send funds to other addresses. Additionally, users can earn yields by depositing USDSC or accumulating STAR Points through liquidity provision, and can directly swap USDSC for other assets within the app interface.

As adoption increases, Startale USD will also be accepted by institutional partners and DeFi protocols, helping to solidify its status as the default stablecoin in Soneium. This multi-channel approach aims to deepen liquidity and strengthen price stability near the $1 target.

How Earn Vault works

The Earn Vault allows users to deposit Startale USD and earn short-term, secured rewards from US Treasury Bills. Internally, the vault allocates funds to underlying instruments similar to low-risk government debt, aiming to generate yield while controlling risk.

When the annualized rate displayed in the “Earn Vault” exceeds the market standard rate, it indicates that some users have chosen to earn STAR Points instead of claiming yield. In practice, these unclaimed yields can be redistributed as additional rewards to other depositors, maintaining a competitive annualized rate while sustaining the reward mechanism.

Therefore, the vault rate is influenced by market conditions and user behavior. However, its overall goal is to ensure yields remain attractive to savers without compromising the long-term sustainability of the Startale ecosystem.

Understanding STAR Points

STAR Points are indicators of user contribution and engagement within the Startale App. They serve as proof of contribution, reflecting users’ active participation in various app features, from liquidity provision to marketing campaigns.

Users can earn STAR Points by completing various activities, participating in events, and using different features. The more active the user, the more points they accumulate. Additionally, STAR Points determine eligibility for future airdrops, exclusive rewards, and other special benefits reserved for active community members.

STAR Points themselves are non-transferable and cannot be sold. However, they have value as they can unlock potential rewards, making them a key component of the overall incentive mechanism within the Startale ecosystem.

Providing liquidity and earning STAR Points

To earn STAR Points through liquidity provision, users must first hold at least $100 worth of USDSC, which can be purchased using tokens from the US Monetary Committee or ETH on Soneium via the official Startale interface. Once they hold enough USDSC, they can access the liquidity module.

After logging into the app, users should navigate to the relevant section in their browser. Then, they click the Deposit button, enter the desired amount of USDSC, and press confirm. To add liquidity, users must read and accept the pop-up notification to complete the transaction.

Once the deposit is completed, the confirmation page will show that liquidity has been successfully added to the pool. However, STAR Points do not take effect immediately. Users must wait for a 30-day waiting period before they can start earning points. They can track their deposits on the Your Positions page and monitor STAR Points accumulated by each position.

Position size and minimum liquidity

There is no limit to the number of liquidity positions a single user can open. You can provide any number of independent deposits as needed, enabling laddered entry times and leveraging the multiplier effect of multiple positions.

However, each deposit must be at least $100 in USDSC to qualify for STAR Points. If the deposit amount is below this threshold, no points will be generated. Users can view the total STAR Points related to liquidity activities in the Provide Liquidity section of the app.

How to calculate STAR Points generated by liquidity

STAR Points from liquidity provision begin to accumulate only after a 30-day initial cliff period. This “cliff period” is designed to reward long-term, stable liquidity providers rather than short-term speculators. After this period, points are accumulated daily based on the size and duration of each position.

The basic rule is simple: users earn 1 STAR Point per day for every $100 deposited. Positions held for longer periods may also receive multiplier rewards, which are calculated and distributed every 30 days. These multiplier rewards increase the effective daily points without changing the base liquidity amount.

For example, consider Scenario 1. On January 1st, Alicia provides $500 in liquidity, creating a position above the $100 minimum. From January 1st to January 29th, she does not earn STAR Points due to the 30-day cliff period.

From January 30th, Alicia starts earning points at the base rate of 1 STAR Point per $100 per day, meaning she earns 5 STAR Points/day. After 60 days, the multiplier activates, and her daily total becomes 5 × 1.2 = 6 STAR Points per day. After 180 days, the multiplier increases again, and her daily total becomes 5 × 2.0 = 10 STAR Points per day.

Scenario 2 demonstrates how multiple positions work. Jerad provides $300 in liquidity on January 1st (Position 1) and another $300 on March 1st (Position 2). From January 1st to January 29th, like Alicia, he earns no STAR Points.

From January 30th, Jerad earns 1 STAR Point per $100 per day on Position 1, which is 3 STAR Points per day. From March 30th, after the 30-day cliff for Position 2, Jerad starts earning an additional 3 STAR Points per day on Position 2, doubling his total liquidity points.

Withdrawals and LIFO method

When users withdraw liquidity, the Startale App applies a Last-In-First-Out (LIFO) method, systematically removing liquidity from the most recent positions first, helping to preserve older positions that typically have higher multipliers.

Scenario 3 illustrates this in practice. Carlos provides liquidity on April 30th, July 30th, September 30th, and October 31st. When he decides to withdraw $200 in liquidity on November 2nd, the app deducts funds from his most recent deposit.

Due to the LIFO rule, Startale removes liquidity from the October 31st position. That position ends up with only a small amount of liquidity left—$100. The remaining positions continue to earn STAR Points according to their applicable multipliers. Carlos’s earlier positions (which may have higher multipliers) remain unchanged and continue to accumulate STAR Points.

Liquidity pool fees and stability

The USDSC/USDC pool currently operates with a 0% fee. This structure is designed to encourage deep liquidity and low friction for trades between USDSC and USDC, making it easier for users to convert between these two USD-pegged assets.

Additionally, the pool enforces a strict trading range of 1–1.0001. This narrow band is intended to maintain price stability and keep USDSC closely pegged to the dollar. In practice, it helps ensure that the Startale App stablecoin performs predictably in decentralized markets.

Support and supplementary questions

STAR Points themselves cannot be transferred or sold to other users. They are only used as in-app metrics to track user engagement and allocate rewards within the Startale ecosystem, rather than as freely tradable tokens.

In summary, Startale USD combines a fully backed stablecoin, transparent reserves, and gamified contribution rewards to provide users with a unified way to save, trade, and earn within the Startale App and the broader Soneium ecosystem.