vUSD

What is vUSD?

vUSD is a ERC20 token which aims to follow the value of DAI, while enabling its holders to accumulate rewards generated by DeFi protocols such as MakerDAO on the Ethereum mainnet.

vUSD is powered by Veno Finance.

To collect rewards, vUSD token holders must claim rewards on a dedicated decentralized application which will be published after Cronos zkEVM mainnet launch. The value of the rewards depends on the rewards generated by the underlying DeFi protocols on Ethereum.

When vUSD is locked into DeFi protocols on Cronos zkEVM, the rewards accrue to these protocols so it is the responsibility of these protocols to decide and communicate how these rewards are distributed between users and other protocol stakeholders.

How does it work?

When users deposit DAI, USDC or USDT on the Cronos zkEVM native bridge, they will receive vUSD (Veno USD) which is a stable asset that aims to approximate the value of 1 USD. vUSD holders will be able to earn yield.

vUSD will not appreciate to reflect the accumulated yield, as this would offer a confusing user experience. Rather, vUSD holders will be able to claim the accumulated yield from a "Reward Vault" (link to be provided when available) that will be updated every week to account for their new holdings.

Under the hood, vUSD is backed by ybUSD, which is a yield-bearing token that appreciates relative to DAI over time.

vUSD is created by the decentralized Veno Finance protocol, in partnership with Cronos zkEVM.

How is the yield generated?

Initially, the stable assets deposit on the bridge will be converted into DAI and invested into the Maker Protocol's DSD (Dai Savings Rate).

Later on, additional yield-generating protocols can be considered.

How to get USD rewards

See Yield rewards

How can users convert vUSD back into DAI?

When users send their vUSD to the Cronos zkEVM native bridge on Cronos zkEVM, the vUSD is bridged to Ethereum mainnet, and it is used to unlock the underlying amount of DAI from the DSR contract. Users then receive DAI on Ethereum mainnet.

We can refer to How to redeem vUSD page for details.

vUSD: security considerations

vUSD has been audited by Slowmist. vUSD is backed by Maker DAO’s sDAI, which has been earning stablecoin yields since 2023. DAI itself has been a staple among stablecoins since its launch in 2017.

---

Contract addresses

• Cronos zkEVM Mainnet (Chain ID: 388) and Etherum Mainnet

Token Name	Symbol	Decimal	Contract Addresses
Veno USD	vUSD	18	Ethereum: n/a Cronos zkEVM: 0x5b91e29Ae5A71d9052620Acb813d5aC25eC7a4A2

• Cronos zkEVM Sepolia testnet(Chain-id: 282) and Ethereum Sepolia Testnet

Token Name	Symbol	Decimal	Contract Addresses
Veno USD	vUSD	18	Ethereum Sepolia: n/a Cronos zkEVM Sepolia testnet: 0x66c8221E5938A296D7542aB3D7cB856e789C06B2

For details on contracts and their interactions involved when bridging to and from Ethereum (L1 - $DAI/$USDC/$USDT) and Cronos zkEVM (L2 - $vUSD ), visit vUSD