> For the complete documentation index, see [llms.txt](https://docs.apyx.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.apyx.fi/solution-overview/apyusd-yield-distribution.md). # Yield Distribution How the protocol receives rewards ### Protocol Revenue Explanation Yield is sourced from preferred shares and U.S. treasuries held offchain in custody. For example, STRC pays dividends at an annualized rate of 12% and SATA at an initial rate of 13%, with dividends paid monthly in cash. These proceeds are converted into apxUSD and credited to the apyUSD vault via the `YieldDistributor`. ### Distribution Mechanism Yield credited to vaults (payout to apyUSD or aptUSD) utilize a linear vesting mechanism implemented by the `LinearVestV0` contract. Instead of a single lump-sum distribution, yield is streamed continuously over a configurable period (e.g., 20 days). The yield rate is set in dollar terms, e.g. $1M of yield will be paid in real time. Yield is paid across all aptUSD and apyUSD not currently undergoing cooldown, meaning new apyUSD that is locked instantly begins receiving yield, reducing the overall % yield for everyone else. In the case of apyUSD, any apyUSD that enters the cooldown phase is removed from the pool set to receive yield, meaning the remaining apyUSD receive a higher % yield. This structure supports protocol stability (potentially at the expense of growth), by creating a slower expansion and contraction curve. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.apyx.fi/solution-overview/apyusd-yield-distribution.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `build a script that syncs our docs to a CMS` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.