# Table of Contents - [Introduction | Monetrix Docs](#introduction-monetrix-docs) - [What is Monetrix | Monetrix Docs](#what-is-monetrix-monetrix-docs) - [Market Opportunity | Monetrix Docs](#market-opportunity-monetrix-docs) - [FAQ | Monetrix Docs](#faq-monetrix-docs) - [Stake & Unstake | Monetrix Docs](#stake-unstake-monetrix-docs) - [Getting Started | Monetrix Docs](#getting-started-monetrix-docs) - [Mint USDM | Monetrix Docs](#mint-usdm-monetrix-docs) - [Redeem USDM | Monetrix Docs](#redeem-usdm-monetrix-docs) - [The CEX Dependency Trap | Monetrix Docs](#the-cex-dependency-trap-monetrix-docs) - [Delta-Neutral Strategy | Monetrix Docs](#delta-neutral-strategy-monetrix-docs) - [Hyperliquid-Native Advantage | Monetrix Docs](#hyperliquid-native-advantage-monetrix-docs) - [APR Estimates | Monetrix Docs](#apr-estimates-monetrix-docs) - [Protocol Architecture | Monetrix Docs](#protocol-architecture-monetrix-docs) - [Native Anti-ADL Shield | Monetrix Docs](#native-anti-adl-shield-monetrix-docs) - [Yield Composition | Monetrix Docs](#yield-composition-monetrix-docs) - [Overview | Monetrix Docs](#overview-monetrix-docs) - [Links & Contact | Monetrix Docs](#links-contact-monetrix-docs) - [Monetrix vs Alternatives | Monetrix Docs](#monetrix-vs-alternatives-monetrix-docs) - [Security Design | Monetrix Docs](#security-design-monetrix-docs) --- # Introduction | Monetrix Docs ![Page cover](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-241402b1c36d825ed5a0bea069ab64ec2aef2cf5%252F00-hero.png%3Falt%3Dmedia&width=1248&dpr=3&quality=100&sign=859dbb53&sv=2) [hashtag](https://doc.monetrix.xyz/#a-stable-dollar-that-actually-earns) 💠 A Stable Dollar That Actually Earns -------------------------------------------------------------------------------------------------------------------- **Monetrix is the first fully on-chain yield-bearing stable token, native to Hyperliquid.** Every synthetic dollar before this one leaned on a centralized exchange somewhere — for custody, for hedging, or both. Monetrix removes the CEX from the path. Every position, every hedge, every rebalance is an on-chain event you can verify in real time. > Money, Yield. Powered by Hyperliquid. * * * [hashtag](https://doc.monetrix.xyz/#two-tokens-one-idea) Two Tokens, One Idea ---------------------------------------------------------------------------------- circle-check **USDM** — mint 1:1 from USDC. A dollar-pegged stable token, redeemable back to USDC. **sUSDM** — stake USDM to receive sUSDM. Yield accrues as the sUSDM/USDM exchange rate grows. Behind the scenes, for every dollar of USDM, the Monetrix vault: * 🛡️ **Hedges** spot collateral with short perpetuals (delta-neutral, price-immune) * 📈 **Captures** funding rate + spot lending + maker rebates + HLP yield * 🔁 **Rebalances** automatically to stay out of ADL risk * 💰 **Distributes** all earnings into the sUSDM exchange rate You hold sUSDM. The rate grows. That's it — no claiming, no compounding, no switching. * * * [hashtag](https://doc.monetrix.xyz/#why-it-matters) Why It Matters ----------------------------------------------------------------------- circle-exclamation On **October 11, 2025**, a Binance oracle error caused Ethena's USDe to depeg to **$0.65**, triggering billions in forced liquidations — despite the underlying delta-neutral math being sound. The failure wasn't in the strategy. It was in the execution venue. Every CEX-custodied synthetic dollar carries that risk, and users can't see it coming until the peg is already broken. Monetrix runs the same delta-neutral strategy **on Hyperliquid's on-chain orderbook**, with Portfolio Margin-unified collateral and a Native Anti-ADL Shield. There is no CEX in the path, nothing off-chain to trust, and every component is auditable by anyone, any time. * * * [hashtag](https://doc.monetrix.xyz/#start-here) Start Here --------------------------------------------------------------- circle-info New here? Walk through [**Getting Started**](https://doc.monetrix.xyz/guide/getting-started) — it covers the full flow in five steps. * [**Mint USDM**](https://doc.monetrix.xyz/guide/mint) → deposit USDC, receive USDM 1:1 * [**Stake USDM**](https://doc.monetrix.xyz/guide/stake) → receive sUSDM, yield begins * [**Redeem USDM**](https://doc.monetrix.xyz/guide/redeem) → convert back to USDC (with cooldown) * [**FAQ**](https://doc.monetrix.xyz/guide/faq) → short answers to common questions [NextWhat is Monetrixchevron-right](https://doc.monetrix.xyz/introduction/what-is-monetrix) Last updated 1 day ago Was this helpful? * [💠 A Stable Dollar That Actually Earns](https://doc.monetrix.xyz/#a-stable-dollar-that-actually-earns) * [Two Tokens, One Idea](https://doc.monetrix.xyz/#two-tokens-one-idea) * [Why It Matters](https://doc.monetrix.xyz/#why-it-matters) * [Start Here](https://doc.monetrix.xyz/#start-here) Was this helpful? --- # What is Monetrix | Monetrix Docs ![Sustainable Yield — real protocol revenue, not incentive farming](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-91717e7c8d4d1b5a6d7c5c1f7b292a32757f4262%252Fadvantage-sustainable.webp%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=3b44f02d&sv=2) Monetrix is a delta-neutral stable-token protocol built natively on Hyperliquid. It issues two tokens: * **USDM** — a dollar-pegged stable token, minted 1:1 against USDC. * **sUSDM** — a yield-bearing receipt you get when you stake USDM. USDM is the stable unit; sUSDM is how you earn yield. Holding USDM alone does not accrue yield — you must stake it. [hashtag](https://doc.monetrix.xyz/introduction/what-is-monetrix#backing) Backing -------------------------------------------------------------------------------------- USDM is not backed by fiat reserves. When you mint, the USDC is deployed into a **delta-neutral portfolio** on Hyperliquid: * Long spot collateral (BTC, ETH, etc.) earning on-chain lending yield. * Matched short perpetual positions hedging the price exposure. * All positions live on Hyperliquid, fully visible and verifiable in real time. Long spot + short perp cancel out — the portfolio has no directional price exposure. It earns yield from the structural flows the protocol participates in (funding, lending, maker rebates, HLP). [hashtag](https://doc.monetrix.xyz/introduction/what-is-monetrix#what-makes-this-design-different) What makes this design different ---------------------------------------------------------------------------------------------------------------------------------------- * **100% on-chain execution.** No custodial risk, no off-exchange settlement, no trust in a centralized venue. * **Multi-source yield.** Four uncorrelated streams instead of single-source funding capture. See [Yield Composition](https://doc.monetrix.xyz/yield/composition) . * **Native to Hyperliquid.** Portfolio Margin, deep orderbook, HLP, and high funding rates all compound into the yield. See [Why Hyperliquid](https://doc.monetrix.xyz/how-it-works/hyperliquid-native) . * **Native Anti-ADL Shield.** Hardcoded on-chain defense against extreme market stress. See [Anti-ADL Shield](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield) . [hashtag](https://doc.monetrix.xyz/introduction/what-is-monetrix#how-yield-reaches-you) How yield reaches you ------------------------------------------------------------------------------------------------------------------ Yield accrues to **sUSDM's exchange rate**, not to USDM. When you stake USDM you receive sUSDM at the current rate. Over time, each sUSDM becomes worth more USDM. When you unstake (after a cooldown) you receive USDM at the then-current rate. No staking rewards to claim, no manual compounding. The rate does the work. Mint USDM with USDC, then stake to earn — see the [Guide](https://doc.monetrix.xyz/guide/mint) . [hashtag](https://doc.monetrix.xyz/introduction/what-is-monetrix#who-its-for) Who it's for ----------------------------------------------------------------------------------------------- * **DeFi users** looking for a stable, verifiable, yield-bearing alternative to USDC/USDT that outperforms TradFi rates. * **Treasuries and DAOs** that need a cash-like on-chain asset with transparent backing. * **Ecosystem protocols** on Hyperliquid that want a yield-bearing stable as collateral or quote asset. [PreviousIntroductionchevron-left](https://doc.monetrix.xyz/) [NextThe CEX Dependency Trapchevron-right](https://doc.monetrix.xyz/introduction/the-problem) Last updated 1 day ago Was this helpful? * [Backing](https://doc.monetrix.xyz/introduction/what-is-monetrix#backing) * [What makes this design different](https://doc.monetrix.xyz/introduction/what-is-monetrix#what-makes-this-design-different) * [How yield reaches you](https://doc.monetrix.xyz/introduction/what-is-monetrix#how-yield-reaches-you) * [Who it's for](https://doc.monetrix.xyz/introduction/what-is-monetrix#who-its-for) Was this helpful? --- # Market Opportunity | Monetrix Docs Two forces are converging to make on-chain yield-bearing dollars the next major flow of capital. [hashtag](https://doc.monetrix.xyz/introduction/market-opportunity#id-1.-post-2025-deleveraging-and-the-flight-to-transparency) 1\. Post-2025 deleveraging and the flight to transparency ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- After the October 2025 liquidation event, users, DAOs, and institutional funds are actively rotating out of CEX-custodied synthetic dollars. The demand signal is simple: **transparent, verifiable stability**. Monetrix is native to that demand. Every position, every hedge, every yield claim is on-chain and auditable without trusting a CEX. [hashtag](https://doc.monetrix.xyz/introduction/market-opportunity#id-2.-the-global-rate-cut-cycle) 2\. The global rate-cut cycle -------------------------------------------------------------------------------------------------------------------------------------- As traditional interest rates fall, TradFi capital is pushing into digital assets in search of yield alternatives that outperform short-duration Treasuries. A yield-bearing on-chain dollar with transparent backing is the cleanest on-ramp for that capital — familiar risk profile, better returns, verifiable custody. [hashtag](https://doc.monetrix.xyz/introduction/market-opportunity#why-the-on-chain-carry-trade-is-finally-scalable) Why the "on-chain carry trade" is finally scalable ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Running a delta-neutral strategy on-chain used to be prohibitively expensive: * Margin was siloed per market, forcing double collateral posting. * Fees compounded on every rebalance. * Execution was fragmented across multiple venues. Hyperliquid's **Portfolio Margin (HPM)** breaks that constraint. With HPM, spot assets act as direct margin for short perpetual positions — the same capital earns spot lending yield **and** hedges price risk simultaneously. This is the first time the economics of an on-chain carry trade match or beat CEX execution. [hashtag](https://doc.monetrix.xyz/introduction/market-opportunity#market-size-scenarios) Market size scenarios -------------------------------------------------------------------------------------------------------------------- The addressable market scales directly with Hyperliquid's open interest and Monetrix's share of delta-neutral hedging demand. Scenario HL Total OI (est.) Monetrix Penetration Projected TVL Strategic Rationale **Conservative** $15.0 B 3.0% $450 M Operates as a niche yield strategy; faces stiff competition **Base Case** $22.0 B 8.0% $1.76 B Captures the spread paid by long speculators to short hedgers **Optimistic** $30.0 B 12.0% $3.60 B Deeply integrated into HL's settlement layer; HYPE incentives accelerate TVL; institutional RWA inflows **Hyper-Growth** $40.0 B 18.0% $7.20 B Becomes the core liquidity backbone of the ecosystem; HL OI rivals top-tier CEXs These scenarios track the ecosystem, not the market cycle — Monetrix's yield comes from **structural leverage demand**, not speculative direction. [PreviousThe CEX Dependency Trapchevron-left](https://doc.monetrix.xyz/introduction/the-problem) [NextGetting Startedchevron-right](https://doc.monetrix.xyz/guide/getting-started) Last updated 1 day ago Was this helpful? * [1\. Post-2025 deleveraging and the flight to transparency](https://doc.monetrix.xyz/introduction/market-opportunity#id-1.-post-2025-deleveraging-and-the-flight-to-transparency) * [2\. The global rate-cut cycle](https://doc.monetrix.xyz/introduction/market-opportunity#id-2.-the-global-rate-cut-cycle) * [Why the "on-chain carry trade" is finally scalable](https://doc.monetrix.xyz/introduction/market-opportunity#why-the-on-chain-carry-trade-is-finally-scalable) * [Market size scenarios](https://doc.monetrix.xyz/introduction/market-opportunity#market-size-scenarios) Was this helpful? --- # FAQ | Monetrix Docs Short answers to common questions. [hashtag](https://doc.monetrix.xyz/guide/faq#product) Product ------------------------------------------------------------------ ### [hashtag](https://doc.monetrix.xyz/guide/faq#what-is-usdm) What is USDM? A dollar-pegged stable token on Hyperliquid. You mint it 1:1 with USDC and redeem it 1:1 back to USDC (with a cooldown). ### [hashtag](https://doc.monetrix.xyz/guide/faq#what-is-susdm) What is sUSDM? The yield-bearing receipt you receive when you stake USDM. Its exchange rate to USDM grows over time as the protocol captures yield. sUSDM is where the yield lives. ### [hashtag](https://doc.monetrix.xyz/guide/faq#do-i-earn-yield-just-by-holding-usdm) Do I earn yield just by holding USDM? **No.** USDM alone does not earn yield — it's a stable receipt. To earn yield you must [**stake USDM**](https://doc.monetrix.xyz/guide/stake) and hold sUSDM. ### [hashtag](https://doc.monetrix.xyz/guide/faq#how-is-usdm-different-from-usdc-or-usdt) How is USDM different from USDC or USDT? USDC/USDT are fiat-backed non-yield stablecoins. USDM is backed by a delta-neutral portfolio that runs 100% on-chain on Hyperliquid, with no CEX custody. ### [hashtag](https://doc.monetrix.xyz/guide/faq#how-is-this-different-from-ethenas-usde) How is this different from Ethena's USDe? Both run delta-neutral strategies. USDe executes on centralized exchanges (CEX custody + off-chain hedging). Monetrix executes entirely on-chain on Hyperliquid. See [Monetrix vs Alternatives](https://doc.monetrix.xyz/ecosystem/comparison) . [hashtag](https://doc.monetrix.xyz/guide/faq#yield) Yield -------------------------------------------------------------- ### [hashtag](https://doc.monetrix.xyz/guide/faq#how-do-i-earn-yield) How do I earn yield? Mint USDM, then **stake it** to receive sUSDM. The sUSDM/USDM rate grows as the protocol earns. No claim transaction — yield accrues continuously through the rate. ### [hashtag](https://doc.monetrix.xyz/guide/faq#what-apr-can-i-expect) What APR can I expect? Estimates: ~10% APR in bear markets, ~20% in neutral, 50%+ in bull markets. These are estimates, not guarantees. See [APR Estimates](https://doc.monetrix.xyz/yield/apr-estimates) . ### [hashtag](https://doc.monetrix.xyz/guide/faq#does-apr-stay-positive-in-bear-markets) Does APR stay positive in bear markets? The design aims to keep it positive — the protocol stacks four uncorrelated yield streams (funding, BLP lending, maker rebates, dynamic HLP). Extreme sustained conditions can still compress yield toward low single digits. ### [hashtag](https://doc.monetrix.xyz/guide/faq#is-yield-compounded) Is yield compounded? Continuously, through the sUSDM exchange rate. There's no discrete distribution event. [hashtag](https://doc.monetrix.xyz/guide/faq#cooldowns) Cooldowns ---------------------------------------------------------------------- ### [hashtag](https://doc.monetrix.xyz/guide/faq#why-does-unstaking-have-a-cooldown) Why does unstaking have a cooldown? The cooldown gives the protocol time to unwind hedge positions efficiently and prevents runs from forcing unfavorable executions. The length is set by the protocol. ### [hashtag](https://doc.monetrix.xyz/guide/faq#why-does-redeeming-usdm-usdc-have-a-cooldown) Why does redeeming USDM → USDC have a cooldown? Same reason: the protocol needs time to realize the USDC from its positions. The redeem cooldown is configurable on-chain and displayed live in the app. ### [hashtag](https://doc.monetrix.xyz/guide/faq#what-if-i-need-to-exit-faster) What if I need to exit faster? You can sell USDM or sUSDM on any DEX that lists them, if you're willing to accept a market price (which may be below 1:1). The cooldown-based redeem path always gives you the full 1:1 / NAV rate. ### [hashtag](https://doc.monetrix.xyz/guide/faq#can-i-cancel-an-unstake-or-redeem-request) Can I cancel an unstake or redeem request? Not directly — once requested, you wait for the cooldown and claim. The asset is held by the protocol during this time. [hashtag](https://doc.monetrix.xyz/guide/faq#risk) Risk ------------------------------------------------------------ ### [hashtag](https://doc.monetrix.xyz/guide/faq#can-usdm-depeg) Can USDM depeg? USDM redeems 1:1 for USDC by construction (via the cooldown path). Short-term secondary-market price can drift under stress, but the 1:1 redemption rate is the reference. ### [hashtag](https://doc.monetrix.xyz/guide/faq#can-susdm-lose-value) Can sUSDM lose value? The sUSDM rate could theoretically decrease under severe stress (negative funding, ADL cascade). The protocol's Anti-ADL Shield and dynamic HLP allocation are designed to prevent this. See [Anti-ADL Shield](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield) . ### [hashtag](https://doc.monetrix.xyz/guide/faq#is-there-smart-contract-risk) Is there smart contract risk? Yes — as with any DeFi protocol. Monetrix is audited by tier-1 firms pre-mainnet and runs an ongoing bug bounty. See [Security Design](https://doc.monetrix.xyz/risk-and-security/security-design) . ### [hashtag](https://doc.monetrix.xyz/guide/faq#is-there-cex-risk) Is there CEX risk? No. The protocol executes entirely on Hyperliquid, on-chain. There is no CEX in the backing or execution path. [hashtag](https://doc.monetrix.xyz/guide/faq#mechanics) Mechanics ---------------------------------------------------------------------- ### [hashtag](https://doc.monetrix.xyz/guide/faq#what-collateral-backs-usdm) What collateral backs USDM? USDC at mint. The protocol deploys the USDC into a delta-neutral portfolio: spot BTC/ETH (etc.) plus matching short perpetual positions on Hyperliquid. Net delta is zero. ### [hashtag](https://doc.monetrix.xyz/guide/faq#where-are-the-contracts) Where are the contracts? On **HyperEVM**. Explorer: [hyperevmscan.ioarrow-up-right](https://hyperevmscan.io/) . Canonical addresses will be published at mainnet. ### [hashtag](https://doc.monetrix.xyz/guide/faq#what-decimals-do-the-tokens-use) What decimals do the tokens use? USDM: 6 decimals (matches USDC). sUSDM: 12 decimals. [hashtag](https://doc.monetrix.xyz/guide/faq#general) General ------------------------------------------------------------------ ### [hashtag](https://doc.monetrix.xyz/guide/faq#is-there-a-governance-token) Is there a governance token? Details will be published before TGE. See [Tokenomics](https://doc.monetrix.xyz/tokenomics/tokenomics) . ### [hashtag](https://doc.monetrix.xyz/guide/faq#where-do-i-get-support) Where do I get support? See the [Resources](https://doc.monetrix.xyz/resources/resources) page for contact and community channels. [PreviousRedeem USDMchevron-left](https://doc.monetrix.xyz/guide/redeem) [NextDelta-Neutral Strategychevron-right](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy) Last updated 1 day ago Was this helpful? * [Product](https://doc.monetrix.xyz/guide/faq#product) * [What is USDM?](https://doc.monetrix.xyz/guide/faq#what-is-usdm) * [What is sUSDM?](https://doc.monetrix.xyz/guide/faq#what-is-susdm) * [Do I earn yield just by holding USDM?](https://doc.monetrix.xyz/guide/faq#do-i-earn-yield-just-by-holding-usdm) * [How is USDM different from USDC or USDT?](https://doc.monetrix.xyz/guide/faq#how-is-usdm-different-from-usdc-or-usdt) * [How is this different from Ethena's USDe?](https://doc.monetrix.xyz/guide/faq#how-is-this-different-from-ethenas-usde) * [Yield](https://doc.monetrix.xyz/guide/faq#yield) * [How do I earn yield?](https://doc.monetrix.xyz/guide/faq#how-do-i-earn-yield) * [What APR can I expect?](https://doc.monetrix.xyz/guide/faq#what-apr-can-i-expect) * [Does APR stay positive in bear markets?](https://doc.monetrix.xyz/guide/faq#does-apr-stay-positive-in-bear-markets) * [Is yield compounded?](https://doc.monetrix.xyz/guide/faq#is-yield-compounded) * [Cooldowns](https://doc.monetrix.xyz/guide/faq#cooldowns) * [Why does unstaking have a cooldown?](https://doc.monetrix.xyz/guide/faq#why-does-unstaking-have-a-cooldown) * [Why does redeeming USDM → USDC have a cooldown?](https://doc.monetrix.xyz/guide/faq#why-does-redeeming-usdm-usdc-have-a-cooldown) * [What if I need to exit faster?](https://doc.monetrix.xyz/guide/faq#what-if-i-need-to-exit-faster) * [Can I cancel an unstake or redeem request?](https://doc.monetrix.xyz/guide/faq#can-i-cancel-an-unstake-or-redeem-request) * [Risk](https://doc.monetrix.xyz/guide/faq#risk) * [Can USDM depeg?](https://doc.monetrix.xyz/guide/faq#can-usdm-depeg) * [Can sUSDM lose value?](https://doc.monetrix.xyz/guide/faq#can-susdm-lose-value) * [Is there smart contract risk?](https://doc.monetrix.xyz/guide/faq#is-there-smart-contract-risk) * [Is there CEX risk?](https://doc.monetrix.xyz/guide/faq#is-there-cex-risk) * [Mechanics](https://doc.monetrix.xyz/guide/faq#mechanics) * [What collateral backs USDM?](https://doc.monetrix.xyz/guide/faq#what-collateral-backs-usdm) * [Where are the contracts?](https://doc.monetrix.xyz/guide/faq#where-are-the-contracts) * [What decimals do the tokens use?](https://doc.monetrix.xyz/guide/faq#what-decimals-do-the-tokens-use) * [General](https://doc.monetrix.xyz/guide/faq#general) * [Is there a governance token?](https://doc.monetrix.xyz/guide/faq#is-there-a-governance-token) * [Where do I get support?](https://doc.monetrix.xyz/guide/faq#where-do-i-get-support) Was this helpful? --- # Stake & Unstake | Monetrix Docs **Staking is where you actually earn yield.** When you stake USDM, you receive **sUSDM** — a receipt token whose exchange rate to USDM grows over time as the protocol captures funding rates, lending yield, and maker rebates. Unstaking is a two-step process with a cooldown period. [hashtag](https://doc.monetrix.xyz/guide/stake#how-the-exchange-rate-works) How the exchange rate works ------------------------------------------------------------------------------------------------------------ Copy 1 sUSDM = X USDM (X grows over time) The app always shows the current rate at the top of the Stake page, e.g. `1 sUSDM = 1.0004 USDM`. When you stake USDM, you receive `amount / X` sUSDM. When you unstake, you receive the same number of sUSDM × (current rate) USDM — which is higher than you put in, because the rate has grown. * **Stake decimals**: USDM has 6 decimals, sUSDM has 12. * **Yield accrues continuously** through the rate. No claim transaction, no compound button. [hashtag](https://doc.monetrix.xyz/guide/stake#stake) Stake ---------------------------------------------------------------- ![Stake / Unstake page: Stake tab active, current rate 1 sUSDM = 1.0004 USDM, Process indicator, and an Unstake Request card in the Ready state with a Claim button](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-83929118e9cf4fc62227e76d29af071605b08807%252Fstake-unstake.png%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=4c904c2e&sv=2) ### [hashtag](https://doc.monetrix.xyz/guide/stake#id-1.-enter-the-amount) 1\. Enter the amount On the Stake page, select the **Stake** tab and enter the USDM amount you want to stake. The app displays: * Your USDM balance. * The estimated sUSDM you'll receive at the current rate. ### [hashtag](https://doc.monetrix.xyz/guide/stake#id-2.-approve-usdm-first-time-only) 2\. Approve USDM (first time only) Click **Approve USDM**. This allows the sUSDM contract to pull your USDM. ### [hashtag](https://doc.monetrix.xyz/guide/stake#id-3.-stake) 3\. Stake The button changes to **Stake USDM**. Click and confirm. The transaction calls `sUSDM.deposit(amount, yourAddress)`. Your USDM is transferred in, and sUSDM is minted to your wallet at the current rate. ### [hashtag](https://doc.monetrix.xyz/guide/stake#thats-it-yield-starts-now) That's it — yield starts now Your sUSDM balance doesn't change, but its **redemption value in USDM** grows. You can watch the `1 sUSDM = X USDM` line on the page tick up over time. [hashtag](https://doc.monetrix.xyz/guide/stake#unstake) Unstake -------------------------------------------------------------------- Unstaking is a two-step process: **request** now, **claim** after the cooldown. ### [hashtag](https://doc.monetrix.xyz/guide/stake#id-1.-request-an-unstake) 1\. Request an unstake Switch to the **Unstake** tab. Enter the sUSDM amount you want to unstake. The app displays: * Your sUSDM balance. * The estimated USDM you'll receive at the current rate. Click **Unstake sUSDM** and confirm. The transaction calls `sUSDM.cooldownShares(amount)`. After this, the cooldown starts. A new card appears under **Unstake requests** with status `Cooldown` and a countdown timer. circle-exclamation Your sUSDM is locked to the cooldown request until the cooldown ends. The exchange rate at the time of the request is the rate used at claim — you don't get additional yield during the cooldown. ### [hashtag](https://doc.monetrix.xyz/guide/stake#id-2.-wait-for-the-cooldown) 2\. Wait for the cooldown The **Waiting Time** column counts down. The exact cooldown length is set by the protocol; the UI shows it live. ### [hashtag](https://doc.monetrix.xyz/guide/stake#id-3.-claim-your-usdm) 3\. Claim your USDM When the cooldown ends, the request's badge flips from `Cooldown` to `Ready` (green) and the button changes from a grey `Waiting` to a teal **Claim**. Click **Claim** and confirm. The transaction calls `sUSDM.claimUnstake(requestId)`, burns the cooldowned sUSDM shares, and sends the corresponding USDM to your wallet. [hashtag](https://doc.monetrix.xyz/guide/stake#after-unstaking) After unstaking ------------------------------------------------------------------------------------ You now hold plain USDM. You can: * **Re-stake it** to earn yield again. * **Redeem it** to USDC — see [Redeem USDM](https://doc.monetrix.xyz/guide/redeem) . Note that redeem has its own, separate cooldown. [hashtag](https://doc.monetrix.xyz/guide/stake#troubleshooting) Troubleshooting ------------------------------------------------------------------------------------ * **"Insufficient USDM balance"** — check your USDM balance; you may need to [mint](https://doc.monetrix.xyz/guide/mint) first. * **"Insufficient sUSDM balance"** (on Unstake) — you're trying to unstake more than you hold. * **Rate looks static** — the sUSDM rate updates whenever the protocol settles earnings; it's not every block. [PreviousMint USDMchevron-left](https://doc.monetrix.xyz/guide/mint) [NextRedeem USDMchevron-right](https://doc.monetrix.xyz/guide/redeem) Last updated 1 day ago Was this helpful? * [How the exchange rate works](https://doc.monetrix.xyz/guide/stake#how-the-exchange-rate-works) * [Stake](https://doc.monetrix.xyz/guide/stake#stake) * [1\. Enter the amount](https://doc.monetrix.xyz/guide/stake#id-1.-enter-the-amount) * [2\. Approve USDM (first time only)](https://doc.monetrix.xyz/guide/stake#id-2.-approve-usdm-first-time-only) * [3\. Stake](https://doc.monetrix.xyz/guide/stake#id-3.-stake) * [That's it — yield starts now](https://doc.monetrix.xyz/guide/stake#thats-it-yield-starts-now) * [Unstake](https://doc.monetrix.xyz/guide/stake#unstake) * [1\. Request an unstake](https://doc.monetrix.xyz/guide/stake#id-1.-request-an-unstake) * [2\. Wait for the cooldown](https://doc.monetrix.xyz/guide/stake#id-2.-wait-for-the-cooldown) * [3\. Claim your USDM](https://doc.monetrix.xyz/guide/stake#id-3.-claim-your-usdm) * [After unstaking](https://doc.monetrix.xyz/guide/stake#after-unstaking) * [Troubleshooting](https://doc.monetrix.xyz/guide/stake#troubleshooting) Was this helpful? --- # Getting Started | Monetrix Docs Monetrix has two tokens and one thing to understand: * **USDM** — minted 1:1 from USDC. Holding USDM alone does **not** earn yield. * **sUSDM** — received when you stake USDM. Holding sUSDM **does** earn yield, because the sUSDM → USDM exchange rate grows over time. [hashtag](https://doc.monetrix.xyz/guide/getting-started#what-you-need) What you need ------------------------------------------------------------------------------------------ * A Web3 wallet connected to **Hyperliquid EVM (HyperEVM)**. * Some **USDC** on HyperEVM. * A small amount of **HYPE** for gas. If you don't have USDC on HyperEVM yet, bridge from Ethereum or another supported chain first. [hashtag](https://doc.monetrix.xyz/guide/getting-started#the-full-flow) The full flow ------------------------------------------------------------------------------------------ Copy USDC ──► (Mint) ──► USDM │ ▼ (Stake) ──► sUSDM ← yield grows here │ ▼ (Unstake + cooldown) ──► USDM │ ▼ (Redeem + cooldown) ──► USDC Three important things: * **Minting and redeeming both use a 1:1 rate** between USDC and USDM. You don't gain or lose value in the mint/redeem steps. * **Staking is where yield accrues.** sUSDM's exchange rate to USDM increases over time. * **Both unstaking and redeeming have cooldown periods** set by the protocol. You request → wait → claim. [hashtag](https://doc.monetrix.xyz/guide/getting-started#quick-steps) Quick steps -------------------------------------------------------------------------------------- 1. [**Mint USDM**](https://doc.monetrix.xyz/guide/mint) — deposit USDC, receive USDM 1:1 (2 transactions: approve + mint). 2. [**Stake USDM**](https://doc.monetrix.xyz/guide/stake) — approve USDM to sUSDM, stake to receive sUSDM (2 transactions). Yield starts accruing. 3. **Hold** — the sUSDM/USDM exchange rate grows as protocol earnings compound. 4. [**Unstake**](https://doc.monetrix.xyz/guide/stake#unstake) — request to unwind your sUSDM back to USDM. Cooldown starts. When it's ready, Claim. 5. [**Redeem USDM**](https://doc.monetrix.xyz/guide/redeem) — request to redeem USDM back to USDC. A second cooldown starts. When it's ready, Claim. [hashtag](https://doc.monetrix.xyz/guide/getting-started#read-next) Read next ---------------------------------------------------------------------------------- * [Mint USDM](https://doc.monetrix.xyz/guide/mint) — step by step. * [Stake USDM](https://doc.monetrix.xyz/guide/stake) — how yield actually works. * [FAQ](https://doc.monetrix.xyz/guide/faq) — short answers to common questions. [PreviousMarket Opportunitychevron-left](https://doc.monetrix.xyz/introduction/market-opportunity) [NextMint USDMchevron-right](https://doc.monetrix.xyz/guide/mint) Last updated 1 day ago Was this helpful? * [What you need](https://doc.monetrix.xyz/guide/getting-started#what-you-need) * [The full flow](https://doc.monetrix.xyz/guide/getting-started#the-full-flow) * [Quick steps](https://doc.monetrix.xyz/guide/getting-started#quick-steps) * [Read next](https://doc.monetrix.xyz/guide/getting-started#read-next) Was this helpful? --- # Mint USDM | Monetrix Docs Deposit USDC, get USDM. The rate is always **1:1**. Minting by itself does not earn yield — for that, see [Stake USDM](https://doc.monetrix.xyz/guide/stake) . [hashtag](https://doc.monetrix.xyz/guide/mint#prerequisites) Prerequisites ------------------------------------------------------------------------------- * Wallet connected to HyperEVM. * Some USDC on HyperEVM. * A small amount of HYPE for gas. [hashtag](https://doc.monetrix.xyz/guide/mint#steps) Steps --------------------------------------------------------------- Minting takes **two transactions**: approve, then mint. ![Mint USDM page: 80 USDC entered, Approve USDC button, Process showing Approve then Mint USDM, Balances showing USDM](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-900bf3045674296b9e662eee2e87608e45b39d6c%252Fmint.png%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=167a6681&sv=2) ### [hashtag](https://doc.monetrix.xyz/guide/mint#id-1.-enter-the-amount) 1\. Enter the amount Open the **Mint** page and enter how much USDC you want to convert. The app shows: * Your USDC balance. * A **Max** button to fill your full balance. * A Process indicator listing _Approve_ → _Mint USDM_. ### [hashtag](https://doc.monetrix.xyz/guide/mint#id-2.-approve-usdc-first-time-only) 2\. Approve USDC (first time only) If this is your first time minting — or if your previous approval is less than the current amount — the button will say **Approve USDC**. Click it and confirm in your wallet. This allows the Monetrix Vault contract to move USDC from your wallet during the mint. circle-info Approve is per-amount. If you approved `80 USDC` before and now want to mint `100 USDC`, you'll be asked to approve again. ### [hashtag](https://doc.monetrix.xyz/guide/mint#id-3.-mint-usdm) 3\. Mint USDM Once the approval is confirmed, the button changes to **Mint USDM**. Click and confirm in your wallet. The transaction calls `MonetrixVault.deposit(amount)`. If it succeeds: * `amount` USDC is transferred to the vault. * You receive exactly `amount` USDM (1:1 ratio). * A toast confirms with a link to the HyperEVM explorer. ### [hashtag](https://doc.monetrix.xyz/guide/mint#id-4.-verify) 4\. Verify Your USDM balance should update. You can also check the transaction on the HyperEVM explorer via the toast link. [hashtag](https://doc.monetrix.xyz/guide/mint#what-can-cause-a-mint-to-fail) What can cause a mint to fail --------------------------------------------------------------------------------------------------------------- The frontend pre-checks these conditions before sending the transaction. If any fail you'll see a toast instead of a transaction prompt: * **Vault is paused** — the protocol is in an emergency paused state. * **Minimum deposit** — your amount is below the protocol minimum. * **Maximum deposit** — your amount is above the per-transaction cap. * **TVL cap reached** — your mint would push total USDM supply above the protocol's TVL cap. These values are read from the `MonetrixConfig` contract at the time of your transaction, so they reflect live protocol settings. [hashtag](https://doc.monetrix.xyz/guide/mint#after-minting) After minting ------------------------------------------------------------------------------- Holding USDM does **not** earn yield on its own. To start earning, go to [**Stake USDM**](https://doc.monetrix.xyz/guide/stake) . If you only want to exit back to USDC, see [**Redeem USDM**](https://doc.monetrix.xyz/guide/redeem) — note the redeem path has a cooldown. [PreviousGetting Startedchevron-left](https://doc.monetrix.xyz/guide/getting-started) [NextStake & Unstakechevron-right](https://doc.monetrix.xyz/guide/stake) Last updated 1 day ago Was this helpful? * [Prerequisites](https://doc.monetrix.xyz/guide/mint#prerequisites) * [Steps](https://doc.monetrix.xyz/guide/mint#steps) * [1\. Enter the amount](https://doc.monetrix.xyz/guide/mint#id-1.-enter-the-amount) * [2\. Approve USDC (first time only)](https://doc.monetrix.xyz/guide/mint#id-2.-approve-usdc-first-time-only) * [3\. Mint USDM](https://doc.monetrix.xyz/guide/mint#id-3.-mint-usdm) * [4\. Verify](https://doc.monetrix.xyz/guide/mint#id-4.-verify) * [What can cause a mint to fail](https://doc.monetrix.xyz/guide/mint#what-can-cause-a-mint-to-fail) * [After minting](https://doc.monetrix.xyz/guide/mint#after-minting) Was this helpful? --- # Redeem USDM | Monetrix Docs Redeeming USDM converts it back to USDC at a **1:1 ratio**. Redemption is a two-step process: **request** now, **claim** after a cooldown. circle-info If your USDM came from unstaking sUSDM, the yield you earned was already realized at the claim step — redeem is just converting USDM back to USDC. [hashtag](https://doc.monetrix.xyz/guide/redeem#steps) Steps ----------------------------------------------------------------- ### [hashtag](https://doc.monetrix.xyz/guide/redeem#id-1.-request-a-redemption) 1\. Request a redemption On the **Redeem** page, enter the USDM amount you want to redeem. The app displays: * Your USDM balance. * A banner showing the **cooldown length** read live from the protocol config (e.g. "7d cooldown before claiming"). Click **Approve USDM** (first time only), then **Redeem USDM**. The transaction calls `MonetrixVault.requestRedeem(amount)`. After this, the cooldown starts. A new card appears under **Redeem requests** with status `Cooldown` and a countdown timer. circle-exclamation Your USDM is burned at request time and held by the vault as a claim on USDC. The 1:1 rate is locked in when you request — further yield is not earned during the cooldown. ### [hashtag](https://doc.monetrix.xyz/guide/redeem#id-2.-wait-for-the-cooldown) 2\. Wait for the cooldown The **Waiting Time** column counts down. The cooldown length comes from `MonetrixConfig.redeemCooldown()` and is displayed live in the UI. ### [hashtag](https://doc.monetrix.xyz/guide/redeem#id-3.-claim-your-usdc) 3\. Claim your USDC When the cooldown ends, the badge flips from `Cooldown` to `Ready` (green) and the **Claim** button becomes active. Click **Claim** and confirm. The transaction calls `MonetrixVault.claimRedeem(requestId)` and sends USDC to your wallet at the 1:1 rate. [hashtag](https://doc.monetrix.xyz/guide/redeem#multiple-requests) Multiple requests ----------------------------------------------------------------------------------------- You can have multiple redeem requests outstanding at the same time — each shows as its own card with an independent cooldown. You can claim them in any order as each one becomes ready. [hashtag](https://doc.monetrix.xyz/guide/redeem#troubleshooting) Troubleshooting ------------------------------------------------------------------------------------- * **"Insufficient USDM balance"** — check your USDM balance. * **"Transaction would exceed TVL cap"** — shouldn't affect redeem (it's a mint-side check). If you see it, try a smaller amount. * **Cooldown shows** `**-**` **(dash)** — the cooldown has ended; the Claim button should be active. * **Gas estimation fails** — usually means the request isn't ready yet (still in cooldown) even if the UI shows "Ready" locally. Refresh the page. [PreviousStake & Unstakechevron-left](https://doc.monetrix.xyz/guide/stake) [NextFAQchevron-right](https://doc.monetrix.xyz/guide/faq) Last updated 1 day ago Was this helpful? * [Steps](https://doc.monetrix.xyz/guide/redeem#steps) * [1\. Request a redemption](https://doc.monetrix.xyz/guide/redeem#id-1.-request-a-redemption) * [2\. Wait for the cooldown](https://doc.monetrix.xyz/guide/redeem#id-2.-wait-for-the-cooldown) * [3\. Claim your USDC](https://doc.monetrix.xyz/guide/redeem#id-3.-claim-your-usdc) * [Multiple requests](https://doc.monetrix.xyz/guide/redeem#multiple-requests) * [Troubleshooting](https://doc.monetrix.xyz/guide/redeem#troubleshooting) Was this helpful? --- # The CEX Dependency Trap | Monetrix Docs ![Full Transparency — every position verifiable on HyperEVM, no hidden CEX balances](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-e5769ddb3b1d45e855aa156ded8d1bb47ba45c02%252Fadvantage-transparency.webp%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=f704fa9d&sv=2) Today's largest synthetic dollars — like Ethena's USDe — depend on centralized exchanges to run their delta-neutral strategies. Collateral sits in Off-Exchange Settlement (OES) arrangements or directly on CEX balance sheets. Hedging positions live inside opaque CEX orderbooks. Oracle feeds are controlled by the exchange. For the user holding a synthetic dollar, this introduces three structural failure modes that **cannot be verified on-chain**. [hashtag](https://doc.monetrix.xyz/introduction/the-problem#id-1.-exchange-counterparty-risk) 1\. Exchange counterparty risk --------------------------------------------------------------------------------------------------------------------------------- If the CEX is insolvent, freezes withdrawals, or changes policy, the synthetic dollar's backing is at risk — regardless of how sound the underlying strategy looks on paper. The user has no lever to pull until the peg is already broken. [hashtag](https://doc.monetrix.xyz/introduction/the-problem#id-2.-opaque-execution) 2\. Opaque execution ------------------------------------------------------------------------------------------------------------- Users cannot verify the real-time health of hedging positions locked inside centralized black boxes. You see a peg on-chain, but you can't see whether the hedge is actually intact, whether margin is healthy, or whether a liquidation is imminent. [hashtag](https://doc.monetrix.xyz/introduction/the-problem#id-3.-forced-early-unwind-risk) 3\. Forced "early-unwind" risk ------------------------------------------------------------------------------------------------------------------------------- During extreme market volatility, CEX-specific constraints — internal oracle glitches, liquidation engines, or emergency margin calls — can trigger premature closure of hedge positions. Delta-neutrality is then broken **not by the market, but by the venue**. [hashtag](https://doc.monetrix.xyz/introduction/the-problem#case-study-the-october-2025-binance-glitch) Case study: The October 2025 "Binance Glitch" ---------------------------------------------------------------------------------------------------------------------------------------------------------- On October 11, 2025, a Binance oracle error caused USDe to depeg to roughly **$0.65**, triggering billions of dollars in forced liquidations across the market. The protocol's underlying delta-neutrality was theoretically sound. The math worked. But the execution venue failed — and holders had no way to see it coming, let alone react to it. **This wasn't a protocol bug. It was a CEX dependency revealing itself under stress.** [hashtag](https://doc.monetrix.xyz/introduction/the-problem#the-migration-is-already-happening) The migration is already happening --------------------------------------------------------------------------------------------------------------------------------------- Following the mass liquidations of late 2025, the market is demanding a different design: **100% on-chain, verifiable, stable**. Capital is rotating out of opaque CEX-dependent synthetics and toward protocols where anyone can prove, in real time, that the hedge is intact and the collateral is safe. Monetrix is built for that migration. Every position, every rebalance, every yield claim is an on-chain event — no trust in a centralized venue required. [PreviousWhat is Monetrixchevron-left](https://doc.monetrix.xyz/introduction/what-is-monetrix) [NextMarket Opportunitychevron-right](https://doc.monetrix.xyz/introduction/market-opportunity) Last updated 1 day ago Was this helpful? * [1\. Exchange counterparty risk](https://doc.monetrix.xyz/introduction/the-problem#id-1.-exchange-counterparty-risk) * [2\. Opaque execution](https://doc.monetrix.xyz/introduction/the-problem#id-2.-opaque-execution) * [3\. Forced "early-unwind" risk](https://doc.monetrix.xyz/introduction/the-problem#id-3.-forced-early-unwind-risk) * [Case study: The October 2025 "Binance Glitch"](https://doc.monetrix.xyz/introduction/the-problem#case-study-the-october-2025-binance-glitch) * [The migration is already happening](https://doc.monetrix.xyz/introduction/the-problem#the-migration-is-already-happening) Was this helpful? --- # Delta-Neutral Strategy | Monetrix Docs Monetrix runs a **delta-neutral** strategy on Hyperliquid — long spot, short perps, net zero price exposure. Yield comes from the structural flows the protocol sits on, not from market direction. [hashtag](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy#the-basic-idea) The basic idea ---------------------------------------------------------------------------------------------------------- 1. User deposits USDC; the protocol buys an equal dollar amount of spot (BTC, ETH, etc.). 2. The protocol opens an equal short perpetual position on Hyperliquid. 3. Spot and short cancel: price goes up, spot gains = short loses. Price goes down, short gains = spot loses. **Net delta is zero.** 4. The combined portfolio earns yield from four structural sources. Because the portfolio has no directional exposure, sUSDM holders are not taking a bet on crypto prices. They're getting paid for providing the "short" side of the market's leverage demand — a side that, on net, gets paid more often than not. [hashtag](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy#the-four-yield-streams) The four yield streams -------------------------------------------------------------------------------------------------------------------------- Source Typical Range What drives it **Funding rate** 5% – 35% APR Long speculators paying short holders for leverage **Spot lending** 1% – 5% APR Interest earned on the spot collateral via Hyperliquid's native lending **Maker rebates** 3% – 10% APR Fees earned by executing hedges as a market maker instead of a taker **Dynamic HLP** 1% – 5% APR Additional yield from Hyperliquid's HLP vault when funding compresses Total APR estimates: roughly **10% (bear) / 20% (neutral) / 50%+ (bull)**. See [APR Estimates](https://doc.monetrix.xyz/yield/apr-estimates) for scenario breakdowns. [hashtag](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy#why-four-sources-matter) Why four sources matter ---------------------------------------------------------------------------------------------------------------------------- A protocol with a single yield source has a single failure mode: when that source dries up, yield goes to zero. Stacking four uncorrelated streams means no single regime shutdown kills the yield. The protocol also actively reallocates between them — for example, shifting into HLP when funding compresses. This is why the design is called **all-weather**: the mix changes, but the total stays positive. [hashtag](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy#where-the-yield-actually-ends-up) Where the yield actually ends up ---------------------------------------------------------------------------------------------------------------------------------------------- The protocol's earnings flow into the **sUSDM exchange rate**: Your sUSDM balance never changes, but each sUSDM is worth more USDM over time. When you unstake, you receive USDM at the then-current rate. circle-info USDM itself is strictly 1:1 with USDC — yield does not accrue to USDM. You must **stake USDM into sUSDM** to earn. See [Stake & Unstake](https://doc.monetrix.xyz/guide/stake) . [hashtag](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy#why-hyperliquid-makes-this-work) Why Hyperliquid makes this work -------------------------------------------------------------------------------------------------------------------------------------------- Running this strategy on-chain used to be prohibitively expensive due to capital fragmentation and execution costs. Hyperliquid removes both bottlenecks — see [Why Hyperliquid](https://doc.monetrix.xyz/how-it-works/hyperliquid-native) . [PreviousFAQchevron-left](https://doc.monetrix.xyz/guide/faq) [NextProtocol Architecturechevron-right](https://doc.monetrix.xyz/how-it-works/architecture) Last updated 1 day ago Was this helpful? * [The basic idea](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy#the-basic-idea) * [The four yield streams](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy#the-four-yield-streams) * [Why four sources matter](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy#why-four-sources-matter) * [Where the yield actually ends up](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy#where-the-yield-actually-ends-up) * [Why Hyperliquid makes this work](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy#why-hyperliquid-makes-this-work) Was this helpful? Copy 1 sUSDM today = 1.0000 USDM 1 sUSDM in 6 months = 1.10 USDM (example) --- # Hyperliquid-Native Advantage | Monetrix Docs Monetrix is built specifically on Hyperliquid. The choice isn't just branding — Hyperliquid has three features that make a fully on-chain delta-neutral stable token economically viable for the first time. [hashtag](https://doc.monetrix.xyz/how-it-works/hyperliquid-native#your-spot-collateral-is-also-your-hedge-margin) Your spot collateral is also your hedge margin ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- On most DEXs, spot and perpetual markets are walled off — to run a delta-neutral position, you'd have to deposit capital twice (once for spot, once for the hedge). That capital drag eats most of the yield. Hyperliquid's **Portfolio Margin** lets spot assets act as direct margin for short perpetual positions. The same dollar backs both legs, and the spot side still earns lending yield in the background. Result: Monetrix's capital efficiency is close to or better than the equivalent strategy on a CEX. [hashtag](https://doc.monetrix.xyz/how-it-works/hyperliquid-native#hedging-is-a-revenue-stream-not-just-a-cost) Hedging is a revenue stream, not just a cost ----------------------------------------------------------------------------------------------------------------------------------------------------------------- Hyperliquid runs a real on-chain orderbook. Monetrix's hedging engine places orders as a **market maker** rather than a taker, so every rebalance **earns fees** instead of paying them. For a protocol that rebalances frequently, that flips a cost into a structural yield stream. [hashtag](https://doc.monetrix.xyz/how-it-works/hyperliquid-native#the-yield-cushion-for-bear-markets) The yield cushion for bear markets ---------------------------------------------------------------------------------------------------------------------------------------------- Hyperliquid has a built-in liquidity pool called **HLP** that earns from liquidations and passive market making. When funding rates compress in neutral or bear markets, the protocol dynamically shifts some capital into HLP to keep the yield floor positive. This is the mechanism behind the "all-weather" design — no single yield source dominates. [hashtag](https://doc.monetrix.xyz/how-it-works/hyperliquid-native#funding-rate-premium) Funding rate premium ------------------------------------------------------------------------------------------------------------------ Historically, BTC and ETH funding rates on Hyperliquid run **1–4 percentage points higher** than the equivalent CEX rates. Monetrix sits on the receiving side of that spread, so the same strategy produces more yield here than it would on a CEX. [hashtag](https://doc.monetrix.xyz/how-it-works/hyperliquid-native#bottom-line) Bottom line ------------------------------------------------------------------------------------------------ Pick any other chain and you'd have to either rebuild these four features, or accept much worse economics. Monetrix is tightly scoped to Hyperliquid because that's where the design actually works. [PreviousProtocol Architecturechevron-left](https://doc.monetrix.xyz/how-it-works/architecture) [NextYield Compositionchevron-right](https://doc.monetrix.xyz/yield/composition) Last updated 1 day ago Was this helpful? * [Your spot collateral is also your hedge margin](https://doc.monetrix.xyz/how-it-works/hyperliquid-native#your-spot-collateral-is-also-your-hedge-margin) * [Hedging is a revenue stream, not just a cost](https://doc.monetrix.xyz/how-it-works/hyperliquid-native#hedging-is-a-revenue-stream-not-just-a-cost) * [The yield cushion for bear markets](https://doc.monetrix.xyz/how-it-works/hyperliquid-native#the-yield-cushion-for-bear-markets) * [Funding rate premium](https://doc.monetrix.xyz/how-it-works/hyperliquid-native#funding-rate-premium) * [Bottom line](https://doc.monetrix.xyz/how-it-works/hyperliquid-native#bottom-line) Was this helpful? --- # APR Estimates | Monetrix Docs Yield flows to **sUSDM holders** through the sUSDM/USDM exchange rate. Total APR is the sum of four independent streams; the mix shifts with market conditions, but the total stays positive across regimes. [hashtag](https://doc.monetrix.xyz/yield/apr-estimates#scenario-breakdown) Scenario breakdown -------------------------------------------------------------------------------------------------- ### [hashtag](https://doc.monetrix.xyz/yield/apr-estimates#bull-market-50--total-apr) Bull market — 50%+ total APR ![Bull scenario: Funding Yield as the dominant Foundation layer of the yield engine](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-a962d30a75552316d7e56de4dd4aed95b842d124%252Fapr-bull.webp%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=a987495b&sv=2) Source Expected Range Funding Yield 20% – 35% Spot Lending 2% – 5% Maker Rebates 5% – 10% Dynamic HLP 1% – 3% ### [hashtag](https://doc.monetrix.xyz/yield/apr-estimates#base-neutral-market-20-total-apr) Base / neutral market — ~20% total APR Source Expected Range Funding Yield 5% – 15% Spot Lending 1% – 4% Maker Rebates 3% – 7% Dynamic HLP 2% – 5% ### [hashtag](https://doc.monetrix.xyz/yield/apr-estimates#bear-market-10-total-apr) Bear market — ~10% total APR ![Bear scenario: HLP (Cushion) and Maker Rebate (Accelerator) carry the yield when Funding compresses](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-79e3a2c0739f76c944ec5e63fe8c7496f3c03e53%252Fapr-bear.webp%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=bd19c1a8&sv=2) Source Expected Range Funding Yield 0% – 5% (may turn negative; protocol reduces short sizing) Spot Lending 1% – 3% Maker Rebates 3% – 5% Dynamic HLP 3% – 5% (cushion active) [hashtag](https://doc.monetrix.xyz/yield/apr-estimates#how-this-translates-for-you) How this translates for you -------------------------------------------------------------------------------------------------------------------- Your **sUSDM balance doesn't change**. The sUSDM/USDM exchange rate grows — at a rate proportional to the total APR above — and you realize that growth when you unstake. Example (illustrative): you stake 1,000 USDM when `1 sUSDM = 1.00 USDM`, receiving 1,000 sUSDM. A year later, if total APR averaged 20%, `1 sUSDM = 1.20 USDM`. You unstake 1,000 sUSDM and receive 1,200 USDM. [hashtag](https://doc.monetrix.xyz/yield/apr-estimates#important-caveats) Important caveats ------------------------------------------------------------------------------------------------ * **Ranges are estimates**, not guarantees. Actual APR depends on live Hyperliquid funding rates, lending demand, trading volume, and protocol allocation decisions. * **Bear APR can go lower** if funding compresses and HLP returns soften simultaneously. * **No leverage.** USDM yield comes from structural flows, not from amplifying risk. * **Protocol fees** may modestly reduce the net APR delivered to sUSDM holders. Parameters will be disclosed at mainnet and governed on-chain thereafter. [hashtag](https://doc.monetrix.xyz/yield/apr-estimates#why-the-numbers-differ-from-competitors) Why the numbers differ from competitors -------------------------------------------------------------------------------------------------------------------------------------------- Ethena and similar CEX-dependent protocols have historically published 5%–25% APR ranges, tilted toward bull conditions and dependent on a single source (funding). Monetrix targets a **higher floor and a higher ceiling** — the floor from stacking uncorrelated sources, the ceiling from Hyperliquid's funding premium and maker economics. See [Monetrix vs Alternatives](https://doc.monetrix.xyz/ecosystem/comparison) for the full side-by-side. [PreviousYield Compositionchevron-left](https://doc.monetrix.xyz/yield/composition) [NextNative Anti-ADL Shieldchevron-right](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield) Last updated 2 days ago Was this helpful? * [Scenario breakdown](https://doc.monetrix.xyz/yield/apr-estimates#scenario-breakdown) * [Bull market — 50%+ total APR](https://doc.monetrix.xyz/yield/apr-estimates#bull-market-50--total-apr) * [Base / neutral market — ~20% total APR](https://doc.monetrix.xyz/yield/apr-estimates#base-neutral-market-20-total-apr) * [Bear market — ~10% total APR](https://doc.monetrix.xyz/yield/apr-estimates#bear-market-10-total-apr) * [How this translates for you](https://doc.monetrix.xyz/yield/apr-estimates#how-this-translates-for-you) * [Important caveats](https://doc.monetrix.xyz/yield/apr-estimates#important-caveats) * [Why the numbers differ from competitors](https://doc.monetrix.xyz/yield/apr-estimates#why-the-numbers-differ-from-competitors) Was this helpful? --- # Protocol Architecture | Monetrix Docs When you mint USDM, your USDC doesn't sit idle — it's deployed into a delta-neutral portfolio on Hyperliquid. Here's the plain-language flow. ![Monetrix protocol flow: USDC mints USDM on HyperEVM, the Position Manager opens spot and short perp positions on HyperCore via Cross Margin, yield flows back through funding, BLP lending, maker rebates, and HLP](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-bb3d89419b3598d9a905017b4d898334b98ee437%252Fhow-it-works.webp%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=8079692f&sv=2) [hashtag](https://doc.monetrix.xyz/how-it-works/architecture#the-flow-at-a-glance) The flow, at a glance ------------------------------------------------------------------------------------------------------------- 1. **You deposit USDC** → the Monetrix Vault receives it. 2. **The vault buys spot assets** (e.g. BTC, ETH) as backing. 3. **The vault opens short perpetual positions** equal to the spot — price moves cancel out. 4. **The protocol earns** funding, lending interest, maker rebates, and optional HLP returns. 5. **Earnings flow into sUSDM's value** — if you've staked, your sUSDM becomes worth more USDM. [hashtag](https://doc.monetrix.xyz/how-it-works/architecture#whos-managing-what) Who's managing what --------------------------------------------------------------------------------------------------------- All of the above happens inside on-chain contracts on Hyperliquid. No off-chain server, no custodian, no manual operator. The two contracts you interact with directly: * `**MonetrixVault**` — handles mint, redeem, and the protocol's positions. * `**sUSDM**` — handles staking, unstaking, and yield distribution through its exchange rate. Everything else (rebalancing, ADL defense, HLP allocation) runs automatically from contract logic. [hashtag](https://doc.monetrix.xyz/how-it-works/architecture#what-that-means-for-you) What that means for you ------------------------------------------------------------------------------------------------------------------ * You can **verify the protocol's position health on-chain** at any time. No "trust us" required. * If Hyperliquid itself is up and functioning, the protocol can function — there's no third-party exchange in the path. * The worst-case failure mode is a Hyperliquid-level issue or a smart contract bug — both of which are visible on-chain. For the mechanics of how yield is generated, see [Delta-Neutral Strategy](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy) . [PreviousDelta-Neutral Strategychevron-left](https://doc.monetrix.xyz/how-it-works/delta-neutral-strategy) [NextHyperliquid-Native Advantagechevron-right](https://doc.monetrix.xyz/how-it-works/hyperliquid-native) Last updated 1 day ago Was this helpful? * [The flow, at a glance](https://doc.monetrix.xyz/how-it-works/architecture#the-flow-at-a-glance) * [Who's managing what](https://doc.monetrix.xyz/how-it-works/architecture#whos-managing-what) * [What that means for you](https://doc.monetrix.xyz/how-it-works/architecture#what-that-means-for-you) Was this helpful? --- # Native Anti-ADL Shield | Monetrix Docs ![Risk Mitigation — Native Anti-ADL, transparent real-time engine](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-619907aaf55c4b8aa407a28098bb82726a63e2ff%252Fadvantage-anti-adl.webp%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=56e71d99&sv=2) **ADL (Auto-Deleveraging)** is a venue-level mechanism on Hyperliquid that force-closes perpetual positions during extreme market stress — specifically, when a counterparty's liquidation can't be filled at market. Any protocol running short perps can be hit by ADL. When that happens, the hedge breaks, and the synthetic dollar temporarily loses its delta-neutrality. For a synthetic dollar protocol, this is the single scariest event. Monetrix's architecture is built specifically to make it survivable. [hashtag](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#how-the-shield-works) How the shield works -------------------------------------------------------------------------------------------------------------------- Three subsystems work together to **prevent, detect, and recover from** ADL events. ### [hashtag](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#id-1.-adl-rebalancer-prevention) 1\. ADL Rebalancer — prevention Monitors the ADL queue in real time. If any of Monetrix's hedges move toward the high-risk zone of the queue, the rebalancer redistributes exposure across positions to push them back into the safe zone. This is preventative. It reduces the probability of being ADL'd in the first place by keeping the protocol's positions structurally safer than the average short on Hyperliquid. ### [hashtag](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#id-2.-auto-reopen-engine-recovery) 2\. Auto-Reopen Engine — recovery If a hedge is closed by ADL anyway, the engine automatically re-opens a matching short position as soon as market conditions allow. No governance vote, no manual call, no off-chain operator — the logic is hardcoded on-chain and triggers directly from the event. ### [hashtag](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#id-3.-daily-queue-hygiene-ongoing-maintenance) 3\. Daily Queue Hygiene — ongoing maintenance On a rolling schedule, the protocol rebalances positions to keep the aggregate ADL-queue ranking consistently in the safe zone. This amortizes ADL risk over time rather than letting it accumulate near the high-risk threshold. [hashtag](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#the-adl-queue-in-plain-terms) The ADL queue in plain terms ------------------------------------------------------------------------------------------------------------------------------------ Hyperliquid ranks perpetual positions by "how much unrealized profit × how much leverage." Positions near the top of the queue are the ones that get ADL'd when a counterparty can't be liquidated at market. The shield keeps Monetrix's positions as close to the bottom of the queue as possible, so other positions get deleveraged first. [hashtag](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#why-on-chain-matters-here) Why on-chain matters here ------------------------------------------------------------------------------------------------------------------------------ On a CEX-dependent synthetic, ADL-equivalent events are invisible until after the fact — users see the depeg, not the mechanism. On Monetrix, the entire shield is: * **Transparent.** Every rebalance and re-open is an on-chain transaction. * **Real-time.** The queue ranking is a public Hyperliquid state; anyone can verify. * **Fully automated.** No human operator, no CEX operator, no off-chain trigger. [hashtag](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#extreme-stress-recovery) Extreme-stress recovery -------------------------------------------------------------------------------------------------------------------------- Even under the worst-case scenario — a correlated liquidation cascade across all major pairs — the Auto-Reopen Engine is designed to restore delta-neutrality within minutes, not days. This is the structural difference from the October 2025 Binance-driven USDe event: in that case, holders had to wait for a CEX to resolve an internal issue. In Monetrix, recovery is a deterministic on-chain process that runs on Hyperliquid's own state. [hashtag](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#what-holders-should-expect) What holders should expect -------------------------------------------------------------------------------------------------------------------------------- * **In normal conditions:** the shield is invisible. Rebalances happen regularly; positions stay safe; the sUSDM rate grows. * **In high volatility:** rebalancing frequency increases. Gas costs tick up slightly; yield is unaffected in aggregate. * **In an ADL event:** the affected hedge is re-opened automatically. Short-term volatility in the sUSDM rate is possible, but the protocol returns to delta-neutrality without user action. Nothing in the shield requires USDM holders to do anything. It's protocol-side machinery. [PreviousAPR Estimateschevron-left](https://doc.monetrix.xyz/yield/apr-estimates) [NextSecurity Designchevron-right](https://doc.monetrix.xyz/risk-and-security/security-design) Last updated 2 days ago Was this helpful? * [How the shield works](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#how-the-shield-works) * [1\. ADL Rebalancer — prevention](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#id-1.-adl-rebalancer-prevention) * [2\. Auto-Reopen Engine — recovery](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#id-2.-auto-reopen-engine-recovery) * [3\. Daily Queue Hygiene — ongoing maintenance](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#id-3.-daily-queue-hygiene-ongoing-maintenance) * [The ADL queue in plain terms](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#the-adl-queue-in-plain-terms) * [Why on-chain matters here](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#why-on-chain-matters-here) * [Extreme-stress recovery](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#extreme-stress-recovery) * [What holders should expect](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield#what-holders-should-expect) Was this helpful? --- # Yield Composition | Monetrix Docs ![Multi-Layered — Funding + BLP + Maker rebates + HLP incentives combined](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-91ec6f207188dfad0672056f7e7126455ca9b767%252Fadvantage-multi-layered.webp%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=ac6659b&sv=2) All yield in Monetrix flows to **sUSDM holders** through the sUSDM/USDM exchange rate. If you hold plain USDM without staking, you do not earn. The yield itself comes from **four independent on-chain sources**. Each has a different driver, which is why total yield stays positive across market conditions. [hashtag](https://doc.monetrix.xyz/yield/composition#id-1.-funding-yield-5-to-35-apr) 1\. Funding Yield — 5% to 35% APR ---------------------------------------------------------------------------------------------------------------------------- **What it is:** The fee long speculators pay short holders on perpetual markets. **How it's captured:** The protocol holds short perps against its spot backing. When funding is positive (longs pay shorts — the default in crypto), the protocol receives the fee continuously. **Why it's the primary driver:** In bull markets, speculative leverage demand pushes funding rates high, and the protocol sits on the receiving side. [hashtag](https://doc.monetrix.xyz/yield/composition#id-2.-spot-lending-yield-1-to-5-apr) 2\. Spot Lending Yield — 1% to 5% APR ------------------------------------------------------------------------------------------------------------------------------------ **What it is:** Lending interest paid to holders of spot assets on Hyperliquid's native lending layer. **How it's captured:** Every dollar of spot collateral automatically earns lending yield. This happens in parallel with the collateral's hedging role, thanks to Hyperliquid's Portfolio Margin. **Why it's the floor:** Lending yield is driven by on-chain borrowing demand, not perp funding rates. It persists even when funding is flat. [hashtag](https://doc.monetrix.xyz/yield/composition#id-3.-maker-rebates-3-to-10-apr) 3\. Maker Rebates — 3% to 10% APR ---------------------------------------------------------------------------------------------------------------------------- **What it is:** Fees paid to liquidity providers on Hyperliquid's orderbook. **How it's captured:** The hedging engine places orders as a **maker** rather than a taker — earning rebates on hedge entries, exits, and rebalances. **Why it's structural:** The rebate comes from trading the protocol has to do anyway. It's execution efficiency converted into a yield stream. [hashtag](https://doc.monetrix.xyz/yield/composition#id-4.-dynamic-hlp-yield-1-to-5-apr) 4\. Dynamic HLP Yield — 1% to 5% APR ---------------------------------------------------------------------------------------------------------------------------------- **What it is:** Returns from Hyperliquid's HLP vault. **How it's captured:** When funding rates compress in neutral or bear markets, the protocol dynamically allocates a portion of collateral into HLP. **Why it matters:** Most delta-neutral protocols break down when funding compresses. The HLP allocation is the cushion that keeps total yield positive in those periods. [hashtag](https://doc.monetrix.xyz/yield/composition#total-apr-by-market-regime) Total APR by market regime ---------------------------------------------------------------------------------------------------------------- Market Regime Total Estimated APR Dominant Contributor **Bull** 50%+ Funding **Neutral** ~20% Lending + Maker Rebates + HLP **Bear** ~10% HLP + Maker Rebates Ranges are estimates based on the sum of the four streams. Actual APR depends on live market conditions and protocol allocation. See [APR Estimates](https://doc.monetrix.xyz/yield/apr-estimates) for scenario-by-scenario breakdowns. [hashtag](https://doc.monetrix.xyz/yield/composition#how-holders-receive-yield) How holders receive yield -------------------------------------------------------------------------------------------------------------- * Stake USDM to receive sUSDM. * Hold sUSDM — the sUSDM/USDM exchange rate grows as earnings accrue. * Unstake (with cooldown) to convert back to USDM at the then-current rate. No claim transactions. No manual compounding. No reward-token switching. [PreviousHyperliquid-Native Advantagechevron-left](https://doc.monetrix.xyz/how-it-works/hyperliquid-native) [NextAPR Estimateschevron-right](https://doc.monetrix.xyz/yield/apr-estimates) Last updated 2 days ago Was this helpful? * [1\. Funding Yield — 5% to 35% APR](https://doc.monetrix.xyz/yield/composition#id-1.-funding-yield-5-to-35-apr) * [2\. Spot Lending Yield — 1% to 5% APR](https://doc.monetrix.xyz/yield/composition#id-2.-spot-lending-yield-1-to-5-apr) * [3\. Maker Rebates — 3% to 10% APR](https://doc.monetrix.xyz/yield/composition#id-3.-maker-rebates-3-to-10-apr) * [4\. Dynamic HLP Yield — 1% to 5% APR](https://doc.monetrix.xyz/yield/composition#id-4.-dynamic-hlp-yield-1-to-5-apr) * [Total APR by market regime](https://doc.monetrix.xyz/yield/composition#total-apr-by-market-regime) * [How holders receive yield](https://doc.monetrix.xyz/yield/composition#how-holders-receive-yield) Was this helpful? --- # Overview | Monetrix Docs > **Status: Placeholder.** Final allocation percentages, vesting schedules, and emission curves will be published here before TGE. The structure below outlines the planned categories. [hashtag](https://doc.monetrix.xyz/tokenomics/tokenomics#tokens-in-the-monetrix-system) Tokens in the Monetrix system -------------------------------------------------------------------------------------------------------------------------- ### [hashtag](https://doc.monetrix.xyz/tokenomics/tokenomics#usdm-the-yield-bearing-stable-token) USDM — the yield-bearing stable token * Minted 1:1 against USDC at protocol issuance. * Redemption value grows through NAV appreciation as the protocol earns yield. * Not a governance token — USDM exists solely to deliver on-chain yield-bearing stability. ### [hashtag](https://doc.monetrix.xyz/tokenomics/tokenomics#governance-incentive-token-tbd) (Governance / incentive token) — TBD Details to be disclosed before TGE. [hashtag](https://doc.monetrix.xyz/tokenomics/tokenomics#planned-allocation-categories) Planned allocation categories -------------------------------------------------------------------------------------------------------------------------- Exact percentages are **to be finalized**. The planned buckets: Category Purpose **Users / Community** Points mining, liquidity mining, airdrops to protocol users and ecosystem participants **Ecosystem & Incentives** Partnerships, integrations, long-term liquidity incentives — emitted based on TVL growth **Treasury** Protocol reserves; unlocks via DAO governance **Team & Advisors** Multi-year vesting with cliff **Seed Round** Early backers; cliff + linear vesting **Private Round** Strategic raise; cliff + linear vesting **Liquidity** Initial DEX liquidity and insurance fund bootstrap; unlocked at TGE [hashtag](https://doc.monetrix.xyz/tokenomics/tokenomics#vesting-principles) Vesting principles ---------------------------------------------------------------------------------------------------- * **Team and investor allocations** vest over multi-year schedules with cliffs, aligning long-term incentives. * **User and ecosystem allocations** are emitted based on measurable protocol metrics (TVL, volume, integrations), not on a fixed emission curve. * **Liquidity and insurance allocations** are made available at TGE to ensure deep markets and downside buffers from day one. [hashtag](https://doc.monetrix.xyz/tokenomics/tokenomics#use-of-funds) Use of funds ---------------------------------------------------------------------------------------- The raise is directed toward three priorities: * **Engineering** — quantitative developers for the hedging engine and smart contract security. * **Liquidity & Insurance** — seed liquidity and an insurance fund to mitigate black-swan funding events. * **Ecosystem & Marketing** — user acquisition, integration incentives, and community building. [hashtag](https://doc.monetrix.xyz/tokenomics/tokenomics#coming-soon) Coming soon -------------------------------------------------------------------------------------- * Final allocation table with percentages and token counts * Full vesting schedule per bucket * Emission model for ecosystem incentives * Governance parameters and handoff plan This page will be updated as decisions are finalized. Follow the [Resources](https://doc.monetrix.xyz/resources/resources) page for announcements. [PreviousMonetrix vs Alternativeschevron-left](https://doc.monetrix.xyz/ecosystem/comparison) [NextLinks & Contactchevron-right](https://doc.monetrix.xyz/resources/resources) Last updated 2 days ago Was this helpful? * [Tokens in the Monetrix system](https://doc.monetrix.xyz/tokenomics/tokenomics#tokens-in-the-monetrix-system) * [USDM — the yield-bearing stable token](https://doc.monetrix.xyz/tokenomics/tokenomics#usdm-the-yield-bearing-stable-token) * [(Governance / incentive token) — TBD](https://doc.monetrix.xyz/tokenomics/tokenomics#governance-incentive-token-tbd) * [Planned allocation categories](https://doc.monetrix.xyz/tokenomics/tokenomics#planned-allocation-categories) * [Vesting principles](https://doc.monetrix.xyz/tokenomics/tokenomics#vesting-principles) * [Use of funds](https://doc.monetrix.xyz/tokenomics/tokenomics#use-of-funds) * [Coming soon](https://doc.monetrix.xyz/tokenomics/tokenomics#coming-soon) Was this helpful? --- # Links & Contact | Monetrix Docs [hashtag](https://doc.monetrix.xyz/resources/resources#community-and-contact) Community & Contact ------------------------------------------------------------------------------------------------------ _Social channels, community chat, and press contacts will be added here as they go live._ * Twitter / X: _(TBD)_ * Discord / Telegram: _(TBD)_ * Email: _(TBD)_ [hashtag](https://doc.monetrix.xyz/resources/resources#ecosystem-partners) Ecosystem partners -------------------------------------------------------------------------------------------------- Monetrix is designed as Hyperliquid-native and plans deep integrations across the ecosystem. A detailed partner list will be maintained here as integrations go live — starting with Pendle markets and HyperEVM DeFi protocols. [hashtag](https://doc.monetrix.xyz/resources/resources#security-disclosures) Security disclosures ------------------------------------------------------------------------------------------------------ Responsible disclosure channels will be published at mainnet launch. For critical issues before then, reach out via the contact channels above. [PreviousOverviewchevron-left](https://doc.monetrix.xyz/tokenomics/tokenomics) Last updated 2 days ago Was this helpful? * [Community & Contact](https://doc.monetrix.xyz/resources/resources#community-and-contact) * [Ecosystem partners](https://doc.monetrix.xyz/resources/resources#ecosystem-partners) * [Security disclosures](https://doc.monetrix.xyz/resources/resources#security-disclosures) Was this helpful? --- # Monetrix vs Alternatives | Monetrix Docs ![No Counterparty Risk — no funds on centralized exchanges, immune to insolvency events](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-347330b5bd4d8ad69be35e1b4e6a3bd27e9e6703%252Fadvantage-no-counterparty.webp%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=6bff22aa&sv=2) How does Monetrix compare to existing delta-neutral synthetic dollars? Feature **Monetrix** (Hyperliquid-Native) **Ethena (USDe)** **Liminal / Delta-Neutral Vaults** **Execution environment** 100% on-chain & trustless Dependent on centralized exchanges (CEX) Hybrid / off-chain monitoring **Counterparty risk** None — no exposure to CEX insolvency or custodial risk High — relies on CEX solvency and MPC custody providers Moderate / high — risks associated with manual management **Yield composition** Multi-layered: Funding + BLP + Maker Rebates + HLP cushion Single source: primarily CEX funding rates Single source: funding rates minus high friction costs **Yield level** 10% – 55% APR (highest) 5% – 25% APR (medium) 1% – 20% APR (low) **Yield sustainability (bear market)** High / resilient Low / variable Low / variable **Risk mitigation** Native Anti-ADL Shield, transparent real-time engine Opaque; subject to CEX withdrawal limits / freezes High vulnerability; susceptible to ADL and off-chain sync failures **Operational security** Fully automated, logic hardcoded on-chain Institutional but centralized decision-making Manual / semi-automated; high risk of latency-induced liquidation [hashtag](https://doc.monetrix.xyz/ecosystem/comparison#what-the-differences-actually-mean) What the differences actually mean ----------------------------------------------------------------------------------------------------------------------------------- ### [hashtag](https://doc.monetrix.xyz/ecosystem/comparison#monetrix-and-ethena-share-the-strategy-not-the-stack) Monetrix and Ethena share the strategy, not the stack Both run delta-neutral: long spot, short perp. The difference is **where the execution lives**. * Ethena's moat is scale and distribution; its liability is the CEX dependency that surfaced in the October 2025 depeg event. * Monetrix's moat is on-chain verifiability plus the multi-source yield engine. If you want exposure to the delta-neutral strategy but you're allergic to CEX counterparty risk, Monetrix is the design built for you. ### [hashtag](https://doc.monetrix.xyz/ecosystem/comparison#liminal-and-similar-vaults-are-yield-limited-by-friction) Liminal and similar vaults are yield-limited by friction Manual or semi-automated delta-neutral vaults have to pay taker fees, maintain operators, and rebalance less frequently — all of which eat into yield. They also can't access Hyperliquid-native features like HPM or HLP, so they have no bear-market cushion. ### [hashtag](https://doc.monetrix.xyz/ecosystem/comparison#usdms-yield-advantage-compounds-over-time) USDM's yield advantage compounds over time Because Monetrix stacks four independent streams (funding + BLP + maker rebates + HLP), the expected APR remains positive across market regimes. Single-source competitors see yield collapse during neutral or bear conditions. [hashtag](https://doc.monetrix.xyz/ecosystem/comparison#case-study-the-october-2025-binance-glitch) Case study: the October 2025 Binance glitch ---------------------------------------------------------------------------------------------------------------------------------------------------- On October 11, 2025, a Binance oracle error caused USDe to depeg to **$0.65**, triggering billions of dollars in forced liquidations. The protocol's delta-neutrality was theoretically sound — but the CEX hosting its execution failed. This is the core risk the Monetrix design eliminates. When the execution lives on-chain, a venue-level glitch on some third-party CEX cannot affect the hedge. The worst-case failure mode is a Hyperliquid-level issue — and Hyperliquid's failure mode is public, on-chain, and auditable in real time. [hashtag](https://doc.monetrix.xyz/ecosystem/comparison#choosing-the-right-product) Choosing the right product ------------------------------------------------------------------------------------------------------------------- You are looking for... Consider Highest on-chain verifiability + multi-source yield Monetrix Largest ecosystem liquidity, willing to accept CEX dependency Ethena Manual off-chain strategy with curated vaults Liminal and similar Non-yield-bearing fiat-backed stable USDC / USDT Monetrix is not trying to replace all of the above — it's targeting the users who prioritize **transparent, verifiable, all-weather yield** on a fully on-chain stable token. [PreviousSecurity Designchevron-left](https://doc.monetrix.xyz/risk-and-security/security-design) [NextOverviewchevron-right](https://doc.monetrix.xyz/tokenomics/tokenomics) Last updated 2 days ago Was this helpful? * [What the differences actually mean](https://doc.monetrix.xyz/ecosystem/comparison#what-the-differences-actually-mean) * [Monetrix and Ethena share the strategy, not the stack](https://doc.monetrix.xyz/ecosystem/comparison#monetrix-and-ethena-share-the-strategy-not-the-stack) * [Liminal and similar vaults are yield-limited by friction](https://doc.monetrix.xyz/ecosystem/comparison#liminal-and-similar-vaults-are-yield-limited-by-friction) * [USDM's yield advantage compounds over time](https://doc.monetrix.xyz/ecosystem/comparison#usdms-yield-advantage-compounds-over-time) * [Case study: the October 2025 Binance glitch](https://doc.monetrix.xyz/ecosystem/comparison#case-study-the-october-2025-binance-glitch) * [Choosing the right product](https://doc.monetrix.xyz/ecosystem/comparison#choosing-the-right-product) Was this helpful? --- # Security Design | Monetrix Docs ![Operational Security — logic is fully automated and hardcoded on-chain](https://doc.monetrix.xyz/~gitbook/image?url=https%3A%2F%2F3971154758-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FbU68iXKFy5nFlHmmSOQE%252Fuploads%252Fgit-blob-4be2bafe80d044d6a97bfcbc8e0444b5fe05a313%252Fadvantage-automation.webp%3Falt%3Dmedia&width=768&dpr=3&quality=100&sign=4082f1e2&sv=2) Beyond the [Anti-ADL Shield](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield) , Monetrix's security model is built on three layers: fully automated on-chain logic, dynamic risk-aware allocation, and conventional smart contract hardening. [hashtag](https://doc.monetrix.xyz/risk-and-security/security-design#id-1.-fully-automated-on-chain-logic) 1\. Fully automated, on-chain logic --------------------------------------------------------------------------------------------------------------------------------------------------- * All protocol logic — position management, rebalancing, sUSDM rate updates, HLP allocation — is hardcoded on-chain. * No off-chain keeper is required for correctness. * No admin action is required for normal operation. * No CEX API, no off-chain oracle, no manual intervention. This is the structural difference from CEX-dependent synthetics. When execution is off-chain, users must **trust** the operator. When execution is on-chain, users **verify**. [hashtag](https://doc.monetrix.xyz/risk-and-security/security-design#id-2.-dynamic-hlp-rebalancing) 2\. Dynamic HLP rebalancing ------------------------------------------------------------------------------------------------------------------------------------ Monetrix doesn't set a static allocation between hedging capital and HLP — the allocation floats based on market conditions. * **When funding is high:** more capital on the hedge side, less in HLP. * **When funding compresses:** more capital shifts into HLP to maintain the yield floor. * **During extreme volatility:** allocation tilts toward conservative positioning to reduce liquidation and ADL risk. This keeps the protocol out of the "all eggs in one basket" trap that hurts single-source delta-neutral vaults. A protocol that's 100% committed to one yield engine breaks when that engine breaks; Monetrix shifts weight before that happens. [hashtag](https://doc.monetrix.xyz/risk-and-security/security-design#id-3.-audits-monitoring-and-insurance) 3\. Audits, monitoring, and insurance ------------------------------------------------------------------------------------------------------------------------------------------------------ * **Continuous third-party audits** by tier-1 security firms (scheduled pre-mainnet and recurring post-mainnet). * **Ongoing bug bounty** program after launch — economic incentive for researchers to report issues responsibly. * **Dedicated insurance fund** sized to absorb black-swan funding events and bridge temporary hedge imbalances, funded from protocol reserves. [hashtag](https://doc.monetrix.xyz/risk-and-security/security-design#what-users-should-know) What users should know ------------------------------------------------------------------------------------------------------------------------ ### [hashtag](https://doc.monetrix.xyz/risk-and-security/security-design#smart-contract-risk) Smart contract risk Any DeFi protocol carries smart contract risk. Audits and bug bounties reduce but do not eliminate it. Start with an amount you're comfortable with and scale up as you get familiar with the protocol. ### [hashtag](https://doc.monetrix.xyz/risk-and-security/security-design#market-risk) Market risk The main market risks for a delta-neutral protocol are: * **Sustained funding reversal** — if funding rates turn deeply negative for an extended period, the protocol's primary revenue stream becomes a cost. Monetrix mitigates this by reducing short sizing and increasing HLP allocation, but it cannot eliminate the drag in extreme conditions. * **Cascading liquidations** — a market-wide forced-liquidation event can push ADL queues into the high-risk zone. The Anti-ADL Shield targets exactly this scenario. * **Correlated depegs** — a liquidity crisis affecting both the spot and perp legs simultaneously can briefly destabilize the sUSDM rate. The insurance fund and periodic profit locking are designed to absorb this. ### [hashtag](https://doc.monetrix.xyz/risk-and-security/security-design#venue-risk) Venue risk **Venue risk is eliminated by design.** There is no CEX in the execution path. Hyperliquid itself is the venue, and Hyperliquid is on-chain — the protocol inherits Hyperliquid's security properties, not a CEX's. ### [hashtag](https://doc.monetrix.xyz/risk-and-security/security-design#governance-risk) Governance risk Early-stage parameters (fees, allocation bounds, ADL thresholds) are set conservatively and documented on-chain. Over time, these will migrate to governance. Current parameter values and any proposed changes will be disclosed on this page. [hashtag](https://doc.monetrix.xyz/risk-and-security/security-design#reporting-a-vulnerability) Reporting a vulnerability ------------------------------------------------------------------------------------------------------------------------------ Responsible disclosure details will be published at mainnet launch. If you believe you've found a critical issue before then, reach out via the channels on the [Resources](https://doc.monetrix.xyz/resources/resources) page. [PreviousNative Anti-ADL Shieldchevron-left](https://doc.monetrix.xyz/risk-and-security/anti-adl-shield) [NextMonetrix vs Alternativeschevron-right](https://doc.monetrix.xyz/ecosystem/comparison) Last updated 2 days ago Was this helpful? * [1\. Fully automated, on-chain logic](https://doc.monetrix.xyz/risk-and-security/security-design#id-1.-fully-automated-on-chain-logic) * [2\. Dynamic HLP rebalancing](https://doc.monetrix.xyz/risk-and-security/security-design#id-2.-dynamic-hlp-rebalancing) * [3\. Audits, monitoring, and insurance](https://doc.monetrix.xyz/risk-and-security/security-design#id-3.-audits-monitoring-and-insurance) * [What users should know](https://doc.monetrix.xyz/risk-and-security/security-design#what-users-should-know) * [Smart contract risk](https://doc.monetrix.xyz/risk-and-security/security-design#smart-contract-risk) * [Market risk](https://doc.monetrix.xyz/risk-and-security/security-design#market-risk) * [Venue risk](https://doc.monetrix.xyz/risk-and-security/security-design#venue-risk) * [Governance risk](https://doc.monetrix.xyz/risk-and-security/security-design#governance-risk) * [Reporting a vulnerability](https://doc.monetrix.xyz/risk-and-security/security-design#reporting-a-vulnerability) Was this helpful? ---