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

# EARN

Stake EARN to receive USDS income from ETH Strategy.

> **Status: Upcoming Release** — USDS rewards through Merkl are scheduled to start streaming on **25 September 2026**. Staking instructions and verified contract addresses will be added before launch.

### What is EARN?

EARN is ETH Strategy's traded preferred yield token. Holders stake EARN to receive a stream of USDS rewards distributed through Merkl.

### How Yield Works

#### First-Year Target

Dividends target **15% for the first year, calculated on $100 per EARN**. This corresponds to a target of **15 USDS per EARN staked for the full year**. The $100 calculation basis is not a guaranteed market price. This is a target, not a guaranteed minimum return.

#### After the First Year

After the initial 12 months, the dividend rate will float according to demand for leverage on the treasury. It will no longer use the initial 15% target.

### Buying and Selling EARN

ETH Strategy will launch an **EARN/USDS concentrated liquidity pool**. After the initial airdrop, the liquidity pool will be the only way to enter or exit EARN.

To acquire EARN, buy it through the pool. To exit, sell it through the pool. The amount received depends on the pool price, available liquidity, trade size, and applicable fees. This is a market sale, not a redemption at book value.

The pool venue, contract address, and trading link will be announced before trading opens.

### Supply and Issuance

EARN will not be freely mintable. Supply will be capped according to the treasury's need for leverage.

The initial supply and issuance controls will be published before launch. The cap should not be read as a permanently fixed supply.

### Key Risks

* **Yield variability:** The 15% first-year dividend rate is a target. Actual distributions depend on strategy income and treasury support.
* **Strategy and counterparty risk:** Options positions, hedges, and execution platforms can incur losses or fail to perform as expected.
* **Liquidity and price risk:** Entry and exit depend on the pool. Limited liquidity or large trades can result in slippage, and EARN can trade below book value.
* **USDS risk:** USDS can trade away from its intended dollar peg, affecting the dollar value of rewards.
* **Contract risk:** Failures in token, staking, distribution, or pool contracts can affect access to funds and rewards.

See [Risks](https://docs.ethstrat.xyz/security-and-risk/risks) for broader protocol risks.

### Contracts and Security

Implementation, testing, and auditing are reported complete. The audit report, reviewed version, and verified deployment addresses will be published before launch.

See [Contracts](https://docs.ethstrat.xyz/references/contracts) for deployment references and [Audits](https://docs.ethstrat.xyz/security-and-risk/audits) for published reports and scope.