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How Solid Works (Architecture)

Updated this week

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 — the complexity stays under the hood.


Solid Protocol Architecture

At a high level:

  1. Users deposit USDC/USDT

  2. It is converted into soUSD

  3. soUSD is deposited into yield strategies

  4. Yield accrues continuously

  5. Users can withdraw or spend at any time

All assets remain non-custodial.


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.


Solid’s security architecture

Solid combines:

  • Safe smart accounts (battle-tested)

  • MPC key management

  • Gas abstraction

This provides security similar to enterprise custody — without giving up user ownership.


Transparency & Contract Addresses

All core contracts are:

  • Public

  • Verifiable on-chain

  • Documented for developers

→ See Contract Addresses (Developers 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.


Security & Audits

Solid works with reputable auditors and infrastructure partners.
Audits and updates are published transparently.


How Solid invests safely

Solid prioritizes:

  • Capital preservation

  • Strategy diversification

  • Liquidity

  • Conservative parameters

High-risk or experimental strategies are intentionally avoided.

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