> For the complete documentation index, see [llms.txt](https://docs.suno.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.suno.finance/for-depositors/uwatt.md). # Using uWatt Acquiring, holding, and redeeming the Reserve-backed token. uWatt is the base token of the Suno portfolio. You can acquire it directly, receive it through project conversion, hold or transfer it, and stake it to earn rewards through c-uWatt. Its $1 desk reference is supported by the Reserve's energy assets, liquid holdings, and collateral buffer. Holding uWatt gives exposure to that backing; it does not accumulate staking rewards on its own. ## Acquiring uWatt At the primary desk, an accepted stablecoin deposit enters Reserve custody and the protocol creates the corresponding uWatt. This creation is called minting. USDC is a stablecoin designed to track the US dollar. When USDC is valued at $1 and the Reserve is fully backed, a deposit of **1,000 USDC mints 1,000 uWatt**. Deposits are valued using supported price feeds, with each stablecoin capped at $1. Admission, deposit limits, and the required backing checks also apply. You can alternatively buy uWatt on an available secondary market. That purchase trades with another participant at a market price; it does not create new tokens or add a new deposit to the Reserve. ## What the $1 reference means The desk reference is the lower of $1 and Reserve value per uWatt. Above $1 of backing, the surplus remains in the Reserve as shared protection. Below $1, the reference reflects the shortfall. The [financial model](/overview/overview.md) explains how project income is valued and contributes to that backing. This is a protocol pricing rule, not a promise that every market will trade at $1. Market prices also reflect demand, available liquidity, and trading costs. Staking converts uWatt into a reward-earning position without changing the underlying Reserve exposure. [Staking with c-uWatt](/for-depositors/staking.md) explains that step. ## Redeeming for USDC A desk redemption removes the submitted uWatt from supply and pays USDC from custody. The payout uses the reference price, applies a safeguard on upward price recovery, and deducts the redemption fee. The offering caps that fee at 0.5%. At a $1 payout price and a 0.5% fee, **1,000 uWatt redeems for 995 USDC**. During recovery from a backing shortfall, the payout safeguard can temporarily keep the quote below the reference price, allowing increases to take effect gradually. ## Planning an exit Suno targets a minimum 10% liquidity allocation, supported by configurable limits on treasury deployment. Withdrawals can draw this liquidity down. Idle liquidity earns a base yield in instruments selected for low risk and high liquidity, which the desk can draw on for USDC. Daily limits pace withdrawals from this pool. [Backing and liquidity](/overview/backing-and-liquidity.md#preserving-liquidity) explains the safeguards. Execution requires enough USDC, daily capacity, fresh prices, and permitted token movement. A large withdrawal may exceed current capacity even when recorded backing is sufficient. Check the current quote and conditions before proceeding. Secondary markets provide another route, with their own prices and available buyers. Compare the amount you would receive after fees and trading costs, rather than treating the $1 reference as an executable quote everywhere. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.suno.finance/for-depositors/uwatt.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.