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Documentation Index

Fetch the complete documentation index at: https://docs.fizenfoundation.com/llms.txt

Use this file to discover all available pages before exploring further.

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Overview

rsUSD.xyz is a smart contract-based vault protocol that issues ERC-4626 style vault shares. These shares represent a proportional claim on the underlying assets of specific, rule-based algorithmic trading strategies executed by the independent quantitative firm, 3e5.ai. Designed to modernize traditional fund accounting, rsUSD.xyz brings institutional asset management on-chain, offering unparalleled transparency, self-custody, and automated execution for verified B2B partners (including the Fizen Foundation). Note: Notwithstanding the inclusion of “USD” in the name, rsUSD tokens are not stablecoins and are not pegged to any fiat currency. Their value fluctuates strictly based on the trading performance of the underlying vault.

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How It Works

By moving traditional fund accounting on-chain, rsUSD.xyz introduces unprecedented efficiency to institutional asset management:
  • Self-Managed Mint & Redeem: Verified partners can deposit USDT to automatically mint vault shares (rsUSD tokens) and redeem them via smart contracts. This allows clients to self-manage their liquidity autonomously, 24/7, without requiring manual approvals from account managers.
  • Batch Execution (Pending Vault): To prevent front-running and ensure fair pricing during active trading exposure, all deposits and redemptions are routed through a “Pending Vault” contract. They are executed in batches at the start of each weekly trading session, ensuring deterministic share pricing.
  • Transparent NAV (Unit Value): The value of the vault shares fluctuates based on the Net Asset Value (NAV) of the underlying assets. The Unit Value is strictly a mathematical function of vault performance (Total Net Assets / Total Shares Outstanding).
  • Performance-Based Value Accumulation: rsUSD.xyz uses an AI-powered, rule-based algorithmic execution system (processing terabytes of historical data). When trading sessions generate realized net profit, 50% of the profit is retained directly within the vault. This auto-compounding mechanism organically increases the Total Net Assets, driving real-time NAV appreciation for institutional liquidity providers.
  • Rigorous KYB: Access to the rsUSD.xyz vault is completely gated. It requires stringent Know Your Business (KYB) verification, formal legal agreements, and direct mandates. It is strictly not available to retail investors.

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The ERC-4626 Vault Model

Each trading strategy operates as an independent vault aligned conceptually with the ERC-4626 tokenized vault standard:
  • Asset: USDT (The underlying deposited asset).
  • Tokens: Vault shares (rsUSDx), representing proportional ownership of the vault’s assets.
  • Total Assets: The aggregate Net Asset Value (NAV) of the vault.
  • Unit Value (Share Price): Calculated continuously as Total Net Assets / Total Shares Outstanding.
The Unit Value increases or decreases strictly as a mathematical function of vault performance. There are no fixed yields, guaranteed returns, or artificial interest accrual mechanisms.

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Profit Allocation Logic

rsUSD.xyz employs a transparent, automated profit-sharing model. If a trading session results in a realized net profit, the protocol allocates the gains as follows:
  1. 50% Retained in Vault (NAV Appreciation): Half of the realized profit is instantly retained within the vault. This organically increases the Total Net Assets and, consequently, the Unit Value of all outstanding shares.
  2. 50% Protocol & Operational Revenue: The remaining half is allocated to protocol operations, which includes:
    • 10% reserved for an internal risk buffer/insurance reserve.
    • 20% allocated toward referral incentives.
    • 70% allocated to infrastructure costs and 3e5.ai execution services.
(If losses occur, the Net Asset Value decreases, and the Unit Value declines proportionally across all outstanding shares).

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Trading Sessions & The Pending Vault

To ensure fairness and prevent market manipulation (such as front-running active trades), rsUSD.xyz utilizes a Pending Vault Contract and structured Trading Sessions.

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1. The Pending Vault Contract

The Pending Contract is a non-yield-generating synchronization mechanism. Its primary purposes are to:
  • Batch deposits and withdrawals.
  • Prevent unfair entry or exit during active trading exposure.
  • Ensure deterministic share pricing at defined execution points.
When users deposit USDT or request a redemption, their assets/shares sit in the Pending Vault. While in this state, they are not deployed in trading and do not accrue gains or losses.

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2. Trading Sessions

Trading activity is organized into defined execution cycles (“Sessions”), typically running from Monday through Sunday. Before each new Trading Session begins, the smart contract batches and executes all pending mint (deposit) and redemption (withdrawal) requests. The Unit Value of the token is strictly determined at this time of execution, ensuring all participants enter and exit at the exact fair market value.
  • Minting Fee: A fixed 1 USDT fee applies to each deposit to offset operational gas costs.
  • Redemption Fee: Zero (0 USDT).

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Live Trading Strategies

rsUSD.xyz currently deploys multiple AI-powered strategies focusing on the deeply liquid XAU (Gold) market to avoid crypto-market correlation:
  • rsUSD1: An intraday gold trading strategy focused on capturing short-term market movements while strictly limiting overnight exposure. It emphasizes capital preservation and low drawdown over high trading frequency.
  • rsUSD2: The second generation of the AI trading bot. Also focused on intraday gold trading, but operates with a higher trading frequency to capture more market opportunities, carrying a slightly adjusted risk profile compared to rsUSD1.