Queue Extractable Value
A market-driven redemption mechanism that turns withdrawal pressure into an orderly, incentive-aligned process. No bank runs. No disorderly exits. Just a queue that prices itself.
Yield-bearing assets have a liquidity mismatch.
sUSDai yield comes from GPU-collateralized loans with 3-year amortization schedules. These are illiquid by nature — you can't sell a data center rack in an afternoon.
Traditional DeFi handles this with instant redemptions, which works until it doesn't. When too many people exit at once, protocols face the same bank-run dynamics that plague traditional finance.
QEV replaces panic with structure.
A 30-day epoch with a built-in market.
Request
An sUSDai holder submits a redemption request. It enters the current epoch's queue.
Bid
Want priority? Submit a sealed ZK bid. Higher bids move up the queue. Bids are private until settlement.
Settle
At epoch close, the queue resolves. Priority bidders exit first. Auction fees are distributed to remaining sUSDai holders.
Earn
Holders who stay earn a share of QEV auction revenue — turning others' impatience into your yield.
Why this works when instant redemptions don't.
No bank runs
Structured epochs eliminate cascading withdrawals. Redemption demand is absorbed in predictable 30-day cycles, not all at once.
Privacy-preserving bids
ZK private auctions prevent front-running and manipulation. No one sees your bid until settlement — inspired by Flashbots MEV-Boost.
Patience is rewarded
Staying in the vault earns you a share of auction fees from those who bid for early exit. Passive income from queue dynamics.
Market-driven pricing
The cost of early exit is set by the market, not governance. When demand to leave is high, priority costs more — natural equilibrium.
Asset-liability alignment
30-day epochs match the underlying loan structure. The protocol never promises liquidity it doesn't have.
Composable exits
Redemption positions are tokenized — trade your place in the queue on secondary markets if you can't wait for settlement.
QEV vs. traditional redemption models.
| Instant Redemption | Lock-up Period | QEV (USD.AI) | |
|---|---|---|---|
| Exit timing | Immediate | Fixed (30–365 days) | 30-day epochs, bid for priority |
| Bank run risk | High — cascading exits | Low — but inflexible | Eliminated — demand is absorbed |
| Fair pricing | First-come, first-served | N/A | Market-driven ZK auctions |
| Waiting holders | No benefit | No benefit | Earn auction fees passively |
| Position flexibility | N/A | Locked, non-transferable | Tokenized — tradeable on secondary |
Read the full specification.
QEV is documented in detail in the USD.AI protocol docs — architecture, auction mechanics, and epoch parameters.