How Solid Works (Architecture)
How Solid's non-custodial architecture works under the hood, from deposits to yield strategies.
Solid under the hood
Solid is built on modern Ethereum infrastructure and the Fuse ecosystem, combining:
- ERC-4626 vaults
- Safe smart accounts
- MPC key management
- Gasless transactions (paymaster)
Users interact with a simple interface, and the complexity stays under the hood.
Solid is available on the App Store and Google Play, and as a web app at app.solid.xyz.
Solid Protocol Architecture
At a high level:
- Users deposit USDC/USDT, and funds arrive in the Wallet first
- Users move funds from Wallet to Savings, converting them to soUSD
- soUSD is deployed into yield strategies
- Yield accrues continuously
- Users can withdraw or spend at any time
All assets remain non-custodial throughout.
How soUSD works
soUSD is an ERC-4626-compatible yield token.
Instead of your balance increasing in tokens, the value of each soUSD increases over time, reflecting earned yield.
This makes soUSD:
- Simple to track
- Efficient for spending
- Compatible with DeFi standards
How soUSD generates yield
soUSD earns yield through curated, conservative DeFi strategies, such as:
- Lending markets
- Liquid yield vaults
- Risk-managed stablecoin strategies
Strategies are selected for capital efficiency, liquidity, and security, not maximum APY at all costs.
Enterprise-grade asset protection
Solid uses:
- Segregated smart contracts
- Audited vaults
- Strict permissioning for strategy execution
No single party can unilaterally move user funds.
Transparency & Contract Addresses
All core contracts are public, verifiable onchain, and documented. See the Contract Addresses article in the Security & Transparency section.
Risk Disclosure
Solid is built to minimize risk, but all DeFi carries risk, including:
- Smart contract risk
- Strategy risk
- Liquidity risk
Solid does not guarantee profits or principal.
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