> 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.

> **Rewards:** USDS rewards are paid by the on-chain staking contract (sEARN). The contract is funded every 28 days and streams each funding to stakers over the following 28 days. EARN and sEARN contract addresses are listed below under Contracts and Security.

### What is EARN?

EARN is ETH Strategy's traded preferred yield token. Holders stake EARN in the staking contract to receive a stream of USDS rewards. EARN held unstaked earns nothing.

### 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.

#### Staking

1. Approve the staking contract to spend your EARN.
2. Call `stake(amount)` on the staking contract. You receive sEARN 1:1. sEARN is non-transferable; it only records your position.
3. Rewards accrue per second over each 28-day stream in proportion to your share of total staked EARN. Read `getPendingRewards(yourAddress)` to see what you can claim.
4. Call `claim()` to withdraw accrued USDS, or `unstake(amount)` to withdraw EARN. Unstaking claims pending rewards first.

Each funding is streamed over 28 days rather than paid at once, so claiming early in a period pays less than waiting for the stream to finish. Contracts that hold sEARN but cannot call `claim()` accrue rewards they cannot collect.

### Buying and Selling EARN

The **EARN/USDS concentrated liquidity pool** is live on Ethereum mainnet. EARN is bought and sold through the market; it does not use the legacy ESPN vault redemption flow.

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 EARN/USDS pool uses Uniswap v4 on Ethereum mainnet, with a 0.30% fee (3000), tick spacing 60, and no hook.

**Pool ID:** `0x0cfa37ad329ca46b06fc4e45f3fb2f32fc6b210a66cf6eb1311b614b2fb2596f`

Uniswap v4 pools share a PoolManager; this pool ID is not a separate contract address. See [Contracts](https://docs.ethstrat.xyz/references/contracts) for the PoolManager, PositionManager, StateView, and LP position details.

### Supply and Issuance

Use the deployed EARN contract to read current supply and issuance permissions. Supply and owner-controlled issuance should not be confused with a permanently fixed cap. See [Contracts](/references/contracts.md) for the deployed address.

### 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

EARN and sEARN are deployed on Ethereum mainnet.

| Token | Contract address                                                                                                      |
| ----- | --------------------------------------------------------------------------------------------------------------------- |
| EARN  | [0x106E54F413180953C5D251bcc3d82122b9c63dAf](https://etherscan.io/address/0x106E54F413180953C5D251bcc3d82122b9c63dAf) |
| sEARN | [0x2B5ab0a6CAb343edeeF46A2e90F23460bc852938](https://etherscan.io/address/0x2B5ab0a6CAb343edeeF46A2e90F23460bc852938) |

sEARN is the only staking contract for EARN; see [Contracts](https://docs.ethstrat.xyz/references/contracts#staked-earn-searn) for deployment details and the note on an earlier, unused deployment. Implementation, testing, and auditing are reported complete. As of 19 October 2026, the audit report and reviewed version are not publicly linked; no confirmed publication date is available. See [Audits](/security-and-risk/audits.md).

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.