# ybUSD & vUSD
## What is ybUSD?
ybUSD is a yield bearing token powered by Veno Finance, backed by sDAI. It increases in value as it sDAI value increases. ybUSD is deployed on Ethereum and can be bridged via any permissionless chain to other networks, including Cronos zkEVM. In order to diversify the risk in the future ybUSD might be backed by a basket of different stablecoin earning yield sources.
### Why ybUSD?
ybUSD is an important building block of the elastic chain, as it embodies both the value of a stablecoin and any yield earned from it. This enables seamless bridging of a yield earning stablecoin across chains.
## Whats is vUSD?
vUSD is a wrapper of ybUSD on Cronos zkEVM. It splits the principle of ybUSD from the yield, pegging its value 1:1 to DAI. This enables yield to be separately distributed to vUSD holders. vUSD can be used in place of a stablecoin, where an USD valued asset is desired, while continuing to earn USD nominated staking yield.
### How to obtain vUSD
Users can mint vUSD directly from DAI, USDC or USDT on Ethereum using the [Cronos zkEVM Bridge](https://zkevm.cronos.org/bridge). This only requires a single transaction on Ethereum. Under the hood the DAI is deposited into ybUSD, which is bridged to Cronos zkEVM and then wrapped into vUSD. If USDC, or USDT is deposited, it is first swapped to DAI on Curve at a 1% slippage, before being deposited into ybUSD. See the user guide for a step by step explanation (available soon).
How to obtain or redeem vUSD
### How to redeem vUSD
Redeeming vUSD back to the underlying DAI is a multistep process:
1. Redeem vUSD for the underlying ybUSD
2. Bridge ybUSD to Ethereum
3. Withdraw DAI from ybUSD
Note that there is no waiting period when withdrawing DAI from ybUSD.
See the user guide for a step-by-step explanation (available soon).
### How to get vUSD rewards
Any address holding vUSD earns yield in the form of additional vETH tokens. The yield earned can be viewed on the Missions page (available soon). The yield will be made claimable some time after the public launch of the Cronos zkEVM network. Users will be allocated claimable yield on a weekly basis based on their average balance holdings. DeFi protocols that hold vUSD can forward their yield to their users. If you are the developer of a DeFi protocol holding vUSD please [reach out](https://crofam.me/contact) if you need technical support for claiming yield.
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## How does ybUSD & vUSD earn yield
All DAI deposited into ybUSD are deposited into the DAI savings rate module. Meaning ybUSD contract is holding sDAI. As sDAI increases its internal exchange rate from `sDAI:DAI`, so does increase the `ybUSD:DAI` exchange rate within ybUSD. Whenever this exchange rate is updated, the `vUSD:ybUSD` rate is also updated accordingly on the vUSD contract on Cronos zkEVM. Ensuring that vUSD stays pegged 1:1 to DAI, and minting new vUSD ready to be distributed as rewards.
### Are there any fees on ybUSD or vUSD?
There are no fees on ybUSD. However, on all vUSD yield minted, a 5% commission is charged by Veno Finance.
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### Contract addresses
* Cronos zkEVM Mainnet (Chain ID: `388`) and Etherum Mainnet
| Token Name | Symbol | Decimal | Contract Addresses |
| ----------------------- | ------ | ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Veno USD | vUSD | `18` |
|
For details on contracts and their interactions involved when bridging to and from Ethereum (L1 - $DAI/$USDC/$USDT) and Cronos zkEVM (L2 - $vUSD ), visit this [page](https://docs-zkevm.cronos.org/for-developers/using-zkcro-veth-and-vusd/vusd).
