> For the complete documentation index, see [llms.txt](https://doc.monetrix.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.monetrix.xyz/introduction/what-is-monetrix.md).

# What is Monetrix

<figure><img src="https://3971154758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FbU68iXKFy5nFlHmmSOQE%2Fuploads%2Fgit-blob-7ac8c28c781b905c2ff6065be7d3ccb682d1e970%2Fadvantage-sustainable.png?alt=media" alt="Sustainable Yield — real protocol revenue, not incentive farming" width="720"><figcaption></figcaption></figure>

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.

## 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, so the portfolio has no directional price exposure. It earns yield from the structural flows the protocol participates in (funding, lending, maker rebates, HLP).

## 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](/yield/composition.md).
* **Native to Hyperliquid.** Portfolio Margin, deep orderbook, HLP, and high funding rates all compound into the yield. See [Why Hyperliquid](/how-it-works/hyperliquid-native.md).
* **Native Anti-ADL Shield.** Hardcoded on-chain defense against extreme market stress. See [Anti-ADL Shield](/risk-and-security/anti-adl-shield.md).

## 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](/guide/getting-started/mint.md).

## 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.