> For the complete documentation index, see [llms.txt](https://docs.stormbit.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stormbit.finance/product/earn.md).

# Earn

Deposit USDC, receive soUSD. Your deposit funds collared loans; your yield is the option premium those loans generate — priced when each collar is written, not promised after the fact.

Target yield is **10–16% APY** depending on tenor, with a floor mechanism that holds when collar premiums compress.

***

**Terms** — Deposits go into tenors (7, 30, and 90 days). Shorter tenors price richer premium per unit time; longer tenors carry steadier income. Pick the tenor that matches when you need the capital back.

***

| Field              | Description                                                                                                                   |
| ------------------ | ----------------------------------------------------------------------------------------------------------------------------- |
| **APY**            | Premium income from the collars written on loans your deposit funds. Variable — moves with implied volatility and utilization |
| **Utilization**    | % of pool capital in active loans. Higher = more premium income                                                               |
| **Payback Period** | When your deposit unlocks. Funds in active loans unlock at loan maturity                                                      |

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**Where the yield comes from** — Every funded loan writes a collar on the borrower's collateral. The short call leg generates premium; that premium is the yield. It is endogenous to the book — uncorrelated to Fed rates and to other protocols' emissions schedules. When implied volatility is rich, premiums are rich. When it compresses, yield compresses toward the floor.

**What protects the principal** — Each loan is over-collateralized and carries a put struck at or above the loan value. Above the floor, collateral covers the loan; below it, the put pays the difference. See [Risks](/protocol/risks.md) for the edge cases.

***

**Withdrawal** — Redeem soUSD for USDC after your tenor's unlock. Funds in active loans unlock as those loans mature.

**No deposit or withdrawal fees.**


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