Skip to main contentReserve → Reward Manager → Staked Assets
The Reward Manager acts as a buffer between raw protocol earnings and user distributions. This serves two purposes:
- Reward Smoothing: DEX LP returns are inherently variable. The Reward Manager accumulates excess yield during high-revenue periods and maintains distribution during lower periods, reducing volatility in sUSDhm APY.
- Loss Absorption: If positions incur short-term losses (from hedging costs, rebalancing, or adverse market conditions), the buffer absorbs these before they affect stakers. Only if accumulated losses exceed the buffer would a loss be passed to the vault.
Key Points
- Staked Asset = Debt in point of view of protocol
- Peg stability of USDhm is not affected at all by risks of portfolio management of Huam (regardless of sUSDhm staker’s loss)
