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Term

Share appreciation vs balance growth

The two ways yield reaches your wallet — and why one of them prices above $1 on purpose.

What this is

Yield reaches you in one of two ways. Share appreciation (e.g. sUSDe, sUSDS): your token count never changes, but each share is redeemable for more of the underlying over time — the technical pattern behind this is usually an ERC-4626 vault. Balance growth, also called rebasing (e.g. rUSDY): the price stays pinned at $1 and your token balance grows instead.

What it means for your yield

The distinction decides how to read the price. A share-appreciation token trading above $1 is not expensive and not depegged — that is the accrued yield. Judging such a token by its distance from $1 produces false alarms; what matters is the share price versus the vault’s net asset value.

Where it appears on Pennyworth

Each detail page states the distribution method in the identity ledger. Share-appreciation products carry an explanatory note there, and Pennyworth never applies $1-anchor depeg judgment to them.