FAQ

Short answers to common questions.

Product

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).

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.

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 and hold sUSDM.

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.

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.

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.

What APR can I expect?

APR is not fixed. It tracks live Hyperliquid funding rates, lending demand, trading volume, and protocol allocation. Realized yield is whatever the four streams produce, surfaced through the sUSDM/USDM exchange rate.

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.

Is yield compounded?

Continuously, through the sUSDM exchange rate. There's no discrete distribution event.

Cooldowns

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.

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.

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.

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.

Risk

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.

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.

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.

Is there CEX risk?

No. The protocol executes entirely on Hyperliquid, on-chain. There is no CEX in the backing or execution path.

Mechanics

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.

Where are the contracts?

On HyperEVM. Explorer: hyperevmscan.io. Canonical addresses will be published at mainnet.

What decimals do the tokens use?

USDM: 6 decimals (matches USDC). sUSDM: 12 decimals.

General

Is there a governance token?

Details will be published before TGE. See Tokenomics.

Where do I get support?

See the Resources page for contact and community channels.