> For the complete documentation index, see [llms.txt](https://docs.infrastructure.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.infrastructure.finance/usd.infra-vault/defi-integrations.md).

# DeFi Integrations

sUSD.infra is designed to be composable across DeFi. While accruing yield from real-world digital infrastructure, it can also be used across lending markets, liquidity pools, and other on-chain primitives.

## **Lending Markets**

sUSD.infra can be listed as collateral on lending protocols, enabling users to borrow against their sUSD.infra position without selling.

The DeFi integrations described below are enabled by third-party protocols, not operated or incentivized by DAWN, and remain subject to participant eligibility and transfer restrictions.

Use cases:

* Borrow stablecoins for liquidity needs while maintaining sUSD.infra exposure.
* Unlock capital without exiting your Vault position.
* Use sUSD.infra as collateral in third-party lending markets (see Looping below).

Availability depends on lending protocols listing sUSD.infra as eligible collateral. Each protocol sets its own parameters: loan-to-value ratios, interest rates, liquidation thresholds, etc.

## **Liquidity Pools**

sUSD.infra can be paired with stablecoins (USDC, USD.infra) in DEX liquidity pools. 

For liquidity providers:

* Earn trading fees on sUSD.infra swaps
* Maintain sUSD.infra Vault participation while the position is in the pool
* Support ecosystem liquidity and tighter spreads

For traders:

* Swap between sUSD.infra and stablecoins without using the Vault’s redemption process
* Access immediate liquidity (market price may differ from exchange rate)

Healthy market liquidity benefits all participants by reducing slippage and supporting orderly price discovery.

## **Curator Vaults**

Third-party vault curators can build strategies using sUSD.infra as a base asset. These managed Vaults offer users access to structured approaches without manually executing each step. 

Examples:

* Automated looping strategies that maintain target leverage
* Multi-asset Vaults that blend sUSD.infra with other yield sources
* Risk-managed strategies with built-in rebalancing

Curator vaults are operated by third parties, not DAWN. Each vault has its own risk profile, fee structure, and management approach. Users should review vault documentation and curator track records before depositing.

## **Yield Tokenization**

Yield tokenization protocols split yield-bearing assets into separate components, enabling different risk exposure from the same underlying asset.

### **How it works:**

sUSD.infra can be split into:

* **Principal Token:** Represents the principal value, redeemable at maturity. Fixes the principal value at purchase, with the maturity outcome determined by Vault performance.
* **Yield Token:** Represents the variable performance stream until maturity. These are third-party rate-market mechanics and DAWN does not promote them as investment strategies.

## **Looping and Why it matters:**

Looping exists because sUSD.infra is composable across supported venues. Unlike positions locked in centralized platforms, sUSD.infra can be used across supported DeFi venues, subject to transfer and eligibility restrictions, which means lending markets can accept it as collateral, and users can build on top of it.

### **How it works:**

1. Deposit sUSD.infra as collateral on a lending protocol
2. Borrow stablecoins against that collateral
3. Convert borrowed stablecoins to more sUSD.infra 
4. Repeat

### **Risks to understand:**

Looping amplifies both returns and risks:

* Liquidation: If collateral value falls relative to debt, lending protocols may liquidate your positions. 
* Interest rate: Variable borrow rates can rise, reducing or eliminating profitability.
* Liquidity: Unwinding a looped position requires multiple transactions and may incur slippage.
* Smart contract: Multiple protocols involved means multiple layers of smart contract risk.

## **DAWN’s Role**

DAWN does not build, operate, or incentivize looping strategies. Looping is an emergent use case enabled by third-party lending markets that choose to list sUSD.infra as collateral.

Users who loop are responsible for understanding the mechanics, managing their positions, and monitoring risks. The vault’s standard redemption mechanics (epoch-based processing, liquidity constraints) apply to all sUSD.infra holders regardless of how they acquired it.

## **Networks**

USD.infra and sUSD.infra are live on Solana only. USD.infra is issued on M0, a stablecoin infrastructure protocol whose architecture supports additional networks; sUSD.infra is issued by the Vault contracts on Solana.