> For the complete documentation index, see [llms.txt](https://docs.ocean.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ocean.fi/getting-started/03-how-ocean-works.md).

# How Ocean Works

## User Flow

1. Deposit USDC/USDT into Ocean
2. Mint OCUSD
3. Optional:
   * Stake OCUSD to earn dollar-based yield and additional $OCEAN rewards
   * Bridge OCUSD to partner chains (e.g. Plume, Sui) to participate in local DeFi
4. Hold OCUSD to earn auto-aggregated yield from a diversified basket of yield-bearing stablecoins

## Yield Sources

Ocean automatically allocates user funds into:

* **A diversified set of yield-bearing stablecoins** (e.g. sUSDe, sDAI, sUSDT), including delta-neutral and on-chain yield strategies
* **Local chain DeFi** opportunities (e.g. Sui vaults, Plume incentives)
* **Ocean-native rewards** in $OCEAN token

All strategy allocation is handled by Ocean's smart contract system.

## Dynamic Yield Allocation

Ocean's smart allocator system performs:

* ***Auto-routing of capital** based on real-time market data*
* ***Rebalancing** to optimize risk-adjusted yield*
* ***Yield aggregation** across multi-chain deployments*

## PayFi Integration (Coming Soon)

Ocean is expanding OCUSD into real-world use cases via **PayFi**:

* Use OCUSD for payments, and plug OCUSD into wallets, e-commerce, and point-of-sale apps