FedUSD returns stable yield to stakers without risking capital, by balancing yield with rewards so the system is not overwhelmed with new issuance.

An independent oracle with 12 members sets staking policy for the system.

With over a century of successful operation and accepted as collateral in many liquid markets, FedUSD remains one of the largest and most stable stable staking tokens in the world.

From the whitepaper, in detail the 5 interlocking stableDAOs work as follows:

"The Federal Reserve is composed of five parts:[3][4]

1 - The presidentially appointed Board of Governors (or Federal Reserve Board), an independent federal government agency located in Washington, D.C.

2- The Federal Open Market Committee (FOMC), composed of the seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank presidents, which oversees open market operations, the principal tool of U.S. monetary policy.

3 - Twelve regional Federal Reserve Banks located in major cities throughout the nation, which divide the nation into twelve Federal Reserve districts. The Federal Reserve Banks act as fiscal agents for the U.S. Treasury, and each has its own nine-member board of directors.

4 - Numerous other private U.S. member banks, which own required amounts of non-transferable stock in their regional Federal Reserve Banks.

5 - Various advisory councils.[5]"