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USDdw accepts capital through credit vaults and deploys it into a range of delta-neutral and market-neutral strategies, and into over-collateralized private credit. Holders earn each vault’s fixed rate through the USDdw share price. Rates are set per vault. Current terms at drakewell.fi.

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From mint to redemption

1

Mint

Deposit USDC into a credit vault to mint USDdw. See Credit vaults for networks and addresses.
2

Fixed rate

Each vault accepts capital at a fixed rate for its term. The rate accrues in the USDdw share price.
3

Deployment

Drakewell deploys the capital into a range of delta-neutral and market-neutral strategies, such as the basis trade and arbitrage, and into over-collateralized private credit.
4

Proof of reserves

Drakewell publishes live proof of reserves. Solvency is validated in real-time by Accountable.
5

Redeem

Redeem USDdw for USDC through the vault’s venue. Redemptions settle on the venue’s schedule, not instantly.

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Where the yield comes from

Drakewell deploys capital from the credit vaults into a range of delta-neutral and market-neutral strategies, such as the basis trade and arbitrage, and into over-collateralized private credit. The trading strategies earn from price differences and funding between markets, not from the direction of crypto prices. Private credit earns interest on loans secured by collateral worth more than the amount lent. Capital is deployed across centralized and decentralized venues, within fixed limits:
  • Directional exposure is hedged, and margin is kept at low leverage.
  • No recursive collateral structures, looping or high-leverage construction.
  • Exposure to any single venue or counterparty is capped.
  • A venue qualifies only with two recent independent audits, one of them from a leading firm, and after meeting thresholds for TVL, withdrawal reliability and operating track record.

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The fixed rate

Each credit vault accepts capital at a fixed rate, set per vault for its term. The rate is shown live and never promised. Rates are reviewed monthly and reset only when opportunity or risk conditions warrant it. When risk is elevated, Drakewell lowers the forward rate rather than take on more risk to hold it. The fixed rate is paid ahead of Drakewell’s own spread. If strategy performance in a period falls below the fixed rate, Drakewell absorbs the shortfall before it reaches holders.

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How value accrues

The share price is the value of one USDdw in USDC, read onchain. It rises as the vault accrues interest. There is no rebase and no distribution, so your yield shows up as a higher USDC value for each USDdw you hold.

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Redemptions

Redemptions are not instant. They settle on the venue’s schedule, up to 7 days. In stress conditions, redemptions can be delayed or suspended, and Drakewell discloses any such delay. Some amounts of USDC are held on-hand to process immediate redemptions of smaller amounts. The larger the redemption, the likelier it is to take the whole 7 days.