Suppliers

Suppliers can permissionlessly deposit USDC to mint either USD3 or sUSD3, and can also stake USD3 for sUSD3 (ERC-4626).

The pool is risk-on: deposited capital is deployed into the two credit sleeves that back it — Fintech Credit Conduits and Crypto Credit Lines — with idle cash held in Aave. USD3 and sUSD3 sit on the liability side as a senior / junior tranche pair over that backing.

USD3 — senior tranche

USD3 is the senior tranche. It earns native pool yield and sits ahead of sUSD3 in the waterfall: it is paid first and is the last to be impaired. USD3 is credit-enhanced — it sits behind originator first-loss equity, overcollateralization, reserves, performance triggers, and the sUSD3 junior tranche beneath it.

USD3 yield is a variable share of pool interest that floats with what the backing generates (see Pool Interest Rates). USD3 can be redeemed up to the tranche ratio.

sUSD3 — junior tranche

sUSD3 is the junior, first-loss tranche. Staking USD3 for sUSD3 gives holders levered yield on the pool of credit while absorbing first losses (net recoveries) ahead of USD3. sUSD3:

• earns the junior share of pool interest — higher yield, first to absorb losses;

• has a 1-month lock (still earning yield), then redeems via a cooldown and withdrawal window;

• supply is capped by the tranche ratio (e.g. 15% of debt).

Risk profile

• In a traditional structure the senior is promised a fixed coupon and the junior absorbs any shortfall — the junior can lose money even when no loans default.

• 3Jane has no fixed coupon: USD3 and sUSD3 each earn a set share of whatever the pool generates, so both rates rise and fall together (see Pool Interest Rates). sUSD3's share is levered — amplified yield in both directions.

• Low yield alone can never impair sUSD3: its rate compresses, but principal is untouched.

• sUSD3 principal is impaired only when credit losses exceed the income the pool is generating — yield absorbs losses before capital, the way a bank's earnings absorb losses before its equity. See Credit Enhancement & Loss Distribution.

Tranche ratio & waterfall

The tranche ratio (TRANCHE_RATIO) caps subordination — the maximum share of debt that can be junior (sUSD3), e.g. 15%. The tranche share variant (TRANCHE_SHARE_VARIANT) sets how pool interest is split between the two tranches. Losses always hit sUSD3 before USD3. For the interest math across both sleeves, see Pool Interest Rates.