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    • Coinshift Overview
  • Coinshift Assets
    • csUSDL
      • How csUSDL works
      • Yield Mechanics
      • Why we need csUSDL?
      • Opportunity Size
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      • Coinshift USDL Vault
        • Characteristics
        • Lenders & Borrowers benefits
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        • Token Specification
    • csUSDC
      • Token Specification
    • SHIFT
  • USER GUIDES
    • Mint csUSDL
    • Redeem csUSDL
  • Integrations & Partners
    • csUSDL Partners
    • csUSDL Integrations
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    • csUSDL Risk Policy
    • Coinshift Litepaper
  • Q&A: Reserves, Lending, and Risk Framework
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  • Introduction
  • Capital Flow
  • Roles
  • Asset Structure
  • ERC-4626 Mechanics
  • Oracle Structure
  • Up-Only Share Price
  1. Coinshift Assets
  2. csUSDL

How csUSDL works

This section explains how funds flow through the system and how csUSDL steadily grows in value over time.

Introduction

csUSDL is a yield-bearing ERC-4626 token that accrues value through real-world interest (T-Bills via USDL) and onchain lending (via Morpho). It is designed to be permissionless, transparent, and easy to integrate across DeFi.


Capital Flow

Here’s what happens when a user mints csUSDL:

  1. Starter Asset User can start with any asset and swap it to USDL on Cowswap.

  2. Wrapping to wUSDL USDL is wrapped into wUSDL — a non-rebasing, ERC-20 token required for compatibility with DeFi protocols like Morpho.

  3. Vault Deposit wUSDL is deposited into the csUSDL ERC-4626 vault. In return, users receive csUSDL tokens representing their proportional share.

  4. Lending via Morpho Blue The vault supplies wUSDL to a Morpho market, where it is lent to borrowers against overcollateralized positions using blue-chip assets like wstETH and cbETH.

  5. Yield Accrual Vault value increases daily from:

    • Daily yield from Paxos’s USDL (T-Bills)

    • Real-time lending interest from Morpho

    • Additional rewards in SHIFT tokens

    Yield is reflected in the rising share price (convertToAssets()), not in token balance.


Roles

Partner
Role

Paxos

Issuer of USDL, manages T-Bill reserves, regulated by FSRA (Abu Dhabi)

Morpho

Leading lending protocol for onchain lending yield generation

Coinshift

csUSDL distributor, fee recipient, and SHIFT issuer

Steakhouse

Vault curator and risk manager


Asset Structure

Token
Description
Yield Source
Behavior

USDL

Paxos-issued stablecoin

RWA (T-Bills)

Rebased daily

wUSDL

Non-rebasing wrapper for USDL

RWA (T-Bills)

Accrual token

csUSDL

Coinshift vault token (ERC-4626)

RWA + DeFi Lending Yield + Morpho and SHIFT rewards

Accrual token


ERC-4626 Mechanics

csUSDL uses the ERC-4626 standard to abstract away the complexity of yield tracking and accounting:

  • Accrual token: The price of the asset grows in your wallet as the underlying position earns yield

  • Daily compounding: T-Bill and lending yield accrue continuously

  • Interoperable: Designed for seamless use across DeFi


Oracle Structure

The value of csUSDL is calculated using two layers of ERC-4626 pricing:

  1. csUSDL → wUSDL Calculated via convertToAssets() on the csUSDL vault

  2. wUSDL → USDL Calculated via Steakhouse’s custom ERC4626Feed oracle, reviewed by Morpho and audited by Spearbit (in progress)

  3. USDL → $1.00 Peg is enforced onchain via Morpho protocol and offchain via monthly reserve attestations by Paxos.

Example: 1.00 csUSDL = 1.01 wUSDL = 1.02 USDL = $1.02


Up-Only Share Price

csUSDL does not support redemptions below its underlying asset value. Since both T-Bill interest and lending yield are continuously added to the vault, the token’s share price only moves in one direction: up.

There are no rebases, no staking requirements, and no manual reinvestment. Yield simply accrues into the token itself.

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Last updated 6 days ago