> For the complete documentation index, see [llms.txt](https://docs.trevee.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.trevee.xyz/trevee-earn/sonic-scassets/developers/staked-scassets-and-yield-distribution.md).

# Staked scAssets & yield distribution

The yield distribution for staked scAssets will be implemented through two methods:

1. A weekly Merkle tree claim system
2. An ERC4626 wrapper (wstkscUSD / wstkscETH)

The Merkle tree claim process allows for efficient and gas-optimized distribution of yields on a weekly basis. Users can claim their rewards by providing proof of their eligibility, which is verified against the Merkle root stored on-chain. This method ensures a fair and transparent distribution of yields while minimizing gas costs for both the protocol and users.

For those seeking a more streamlined experience, the ERC4626 wrapper tokens (wstkscUSD and wstkscETH) will automatically compound yields. These wrapper tokens represent a user's stake in the underlying scAssets, including accrued yields, making them ideal for users who prefer a "set-and-forget" approach to earning yields on their staked assets.

This dual approach to yield distribution offers flexibility and efficiency, catering to different user preferences within the ecosystem.


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