# stUSC

<figure><img src="/files/Zv4DcjwdnUHMGVFrtFY8" alt="" width="240"><figcaption></figcaption></figure>

## What is stUSC?

{% hint style="success" %}
**stUSC is the rebasable ERC20 token of the Chi Protocol. By staking USC, users receive stUSC at a 1:1 ratio, allowing them to benefit from native USC rewards while maintaining composability across the DeFi ecosystem.**
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Staking USC in exchange for stUSC enables individuals and organisations to earn rebase rewards without locking up their capital or sacrificing liquidity. To earn rewards from stUSC, users simply need to stake their USC. Once staked, they will start receiving USC rewards periodically, which automatically increase their stUSC balance.

Users can unstake their stUSC at any time to receive their initial USC deposit along with any accumulated rewards. However, unstaking stUSC will stop the accrual of rebase rewards, as users will no longer be participating in the staking process.

## How does stUSC work?

stUSC is straightforward: users stake USC and receive 100% of their staked amount in stUSC. After staking, they automatically earn rebase rewards directly from the Chi Protocol.

<figure><img src="/files/zRaZIig3Ai4b0STNlGX1" alt=""><figcaption><p>stUSC Core Logic </p></figcaption></figure>

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There are no staking or unstaking fees applied to the notional amount, ensuring that users receive the full benefit of their rewards.
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**Example**

<figure><img src="/files/tiqBDU8qm7CZcuwY0e7g" alt=""><figcaption><p>stUSC Rewards Distribution</p></figcaption></figure>

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It is important to note that all staking rewards are automatically accrued in the user's wallet, with no need for manual claims. This makes the process seamless and convenient, allowing users to effortlessly benefit from their staking activities.
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[More on Sustainable Reward Sources ](/chi-docs/concepts/sustainable-reward-sources.md)\
[More On Rewards Generation & Distribution ](/chi-docs/usc/rewards-generation-and-distribution.md)\
[More on APR Formulas ](/chi-docs/resources/apr-formulas.md)


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