> For the complete documentation index, see [llms.txt](https://docs.holdstation.com/holdstation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.holdstation.com/holdstation/holdstation-defutures/defuture-fees/hsusd1-vault.md).

# hsUSD1 Vault

hsUSD1 is a yield-bearing stablecoin crafted for the Holdstation ecosystem, enhancing user returns with automatic compounding of trading fees. This drives gradual value growth over standard USD1, offering passive income opportunities.

## Key Features

* **Minting hsUSD1**:
  * Fee-free and instant minting with no waiting.
  * Stake USD1 to receive hsUSD1 immediately, unlocking fee-sharing benefits hassle-free.
* **Auto-Compounding of Trading Fees**:
  * Trading fees are reinvested into the hsUSD1 pool automatically.
  * Earnings compound, steadily increasing hsUSD1 value compared to USD1 with zero manual effort.
* **Redeeming hsUSD1**:
  * Fee-free redemption to USD1 for cost efficiency.
  * A 5-epoch waiting period ensures vault liquidity, preventing disruptions during high open positions.
  * hsUSD1 continues earning fees during the wait.