shUSD for Depositors

Depositors fund the loans. In return they hold shUSD, the token that represents their share of a Shores vault.

1. Deposit. Pass identity checks and deposit into the vault. shUSD is minted at 1.00 at launch and at the current NAV after that.
2. Receive shUSD. Unstaked tokens accrue value.
3. Stake. Staked shUSD receives a monthly cash yield (8% target) for the time it is actually staked.
4. Exit. After an initial lockup, exit on the secondary market, with liquidity from LPs as well as Shores.

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The market

Lending against real property is one of the oldest and largest credit markets in the world. Real property credit is far larger offchain and only beginning to move onchain. In Latin America and South Florida, property owners who need fast, short-term capital go to private lenders and brokers. Those loans clear at 13–15% today.

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Structure

Each Shores vault is a separate segregated portfolio (a “cell”) of a Cayman Islands exempted segregated portfolio company. A cell’s loans and cash are legally separate from every other vault and from the companies that run Shores. See Legal structure.

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How a dollar moves

1. Depositors fund the vault and receive shUSD.
2. The vault lends offchain, under local law, with local loan documents and registered first liens. [TBD: describe the funding and repayment path for publication]
3. Borrowers pay 13–15%. Owners pay the yield.
4. Capital recycles. Bridge loans are short. When a loan repays, the capital goes out to a new borrower.
5. Net interest reaches depositors. After fees, servicing and the first-loss reserve, staked shUSD receives a monthly cash yield (8% target). The share belonging to unstaked shUSD stays in the vault and raises NAV.

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Underwriting and credit

Repayment discipline is the core of the credit model:

• Careful underwriting of the borrower, the title, the property and the exit plan.
• Conservative loan sizing, so the borrower keeps real equity at stake.
• First liens, so the vault is senior to every other lender on the property.
• Active servicing from funding to repayment.

Real property is durable, recorded and enforceable. That makes the security behind each loan something you can inspect and value, not a token price. It reduces default risk; it does not remove it. See Risk.

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Next steps