# What is Monetrix
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/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.
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