# Introduction The first fully on-chain yield-bearing stable token, native to Hyperliquid. ## 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. *** ## Two tokens, one idea {% hint style="success" %} **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. {% endhint %} 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. *** ## Why it matters {% hint style="warning" %} 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. {% endhint %} 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 a 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. *** ## Start here {% hint style="info" %} New here? Walk through [**Getting Started**](/guide/getting-started). It covers the full flow in five steps. {% endhint %} * [**Mint USDM**](/guide/getting-started/mint) → deposit USDC, receive USDM 1:1 * [**Stake USDM**](/guide/getting-started/stake) → receive sUSDM, yield begins * [**Redeem USDM**](/guide/getting-started/redeem) → convert back to USDC (with cooldown) * [**FAQ**](/guide/getting-started/faq) → short answers to common questions # What is Monetrix
Sustainable Yield — real protocol revenue, not incentive farming
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). * **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). * **Native Anti-ADL Shield.** Hardcoded on-chain defense against extreme market stress. See [Anti-ADL Shield](/risk-and-security/anti-adl-shield). ## 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). ## 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. # The CEX Dependency Trap
Full Transparency — every position verifiable on HyperEVM, no hidden CEX balances
Today's largest synthetic dollars (Ethena's USDe being the most visible) 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**. ## 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. ## 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. ## 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**. ## 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.** ## 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. # USDM 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. ## 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. ## The full flow ``` 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. ## Quick steps 1. [**Mint USDM**](/guide/getting-started/mint): deposit USDC, receive USDM 1:1 (2 transactions: approve + mint). 2. [**Stake USDM**](/guide/getting-started/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**](/guide/getting-started/stake#unstake): request to unwind your sUSDM back to USDM. Cooldown starts. When it's ready, Claim. 5. [**Redeem USDM**](/guide/getting-started/redeem): request to redeem USDM back to USDC. A second cooldown starts. When it's ready, Claim. ## Read next * [Mint USDM](/guide/getting-started/mint): step by step. * [Stake USDM](/guide/getting-started/stake): how yield actually works. * [FAQ](/guide/getting-started/faq): short answers to common questions. # Mint USDM Deposit USDC, get USDM. The rate is always **1:1**. Minting by itself does not earn yield; for that, see [Stake USDM](/guide/getting-started/stake). ## Prerequisites * Wallet connected to HyperEVM. * Some USDC on HyperEVM. * A small amount of HYPE for gas. ## 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
### 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*. ### 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. {% hint style="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. {% endhint %} ### 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. ### 4. Verify Your USDM balance should update. You can also check the transaction on the HyperEVM explorer via the toast link. ## 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. ## After minting Holding USDM does **not** earn yield on its own. To start earning, go to [**Stake USDM**](/guide/getting-started/stake). If you only want to exit back to USDC, see [**Redeem USDM**](/guide/getting-started/redeem). Note the redeem path has a cooldown. # Stake & Unstake **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. {% hint style="info" %} **Current unstake cooldown: 3 days.** This value is read live from the sUSDM contract and can be adjusted by governance. The active value is always shown in the UI and is authoritative. {% endhint %} ## How the exchange rate works ``` 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. ## 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
### 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. ### 2. Approve USDM (first time only) Click **Approve USDM**. This allows the sUSDM contract to pull your USDM. ### 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. ### 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. ## Unstake Unstaking is a two-step process: **request** now, **claim** after the cooldown. ### 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. {% hint style="warning" %} 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. {% endhint %} ### 2. Wait for the cooldown The **Waiting Time** column counts down. The cooldown length (currently **3 days**) is set by the sUSDM contract and shown live in the UI. Governance can adjust this parameter; future changes will be announced before they take effect. ### 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. ## After unstaking You now hold plain USDM. You can: * **Re-stake it** to earn yield again. * **Redeem it** to USDC; see [Redeem USDM](/guide/getting-started/redeem). Note that redeem has its own, separate cooldown. ## Troubleshooting * **"Insufficient USDM balance"**: check your USDM balance; you may need to [mint](/guide/getting-started/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. # Redeem USDM Redeeming USDM converts it back to USDC at a **1:1 ratio**. Redemption is a two-step process: **request** now, **claim** after a cooldown. {% hint style="info" %} **Current cooldown: 3 days.** This value is read live from `MonetrixConfig.redeemCooldown()` and can be adjusted by governance. The active value is always shown in the UI and is authoritative. {% endhint %} {% hint style="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. {% endhint %} ## Steps ### 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. "3d 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. {% hint style="warning" %} 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. {% endhint %} ### 2. Wait for the cooldown The **Waiting Time** column counts down. The cooldown length (currently **3 days**) comes from `MonetrixConfig.redeemCooldown()` and is displayed live in the UI. Governance can adjust this parameter; future changes will be announced before they take effect. ### 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. ## 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. ## 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. # 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**](/guide/getting-started/stake) 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](/ecosystem/comparison). ## 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](/risk-and-security/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](/risk-and-security/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](https://hyperevmscan.io). Canonical addresses are listed on [Audits & Contracts](/risk-and-security/audits-and-contracts). ### 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](/tokenomics/tokenomics). ### Where do I get support? See the [Resources](/resources/resources) page for contact and community channels. # mxHYPE mxHYPE is the HYPE-denominated product in the Monetrix system. It works the same way as USDM, with HYPE in place of USDC: * **mxHYPE**: minted 1:1 from native HYPE. Holding mxHYPE alone does **not** earn yield. * **smxHYPE**: received when you stake mxHYPE. Holding smxHYPE **does** earn yield, because the smxHYPE → mxHYPE exchange rate grows over time. {% hint style="warning" %} **mxHYPE is not a stable token.** 1 mxHYPE always redeems for 1 HYPE, so its value in dollars moves with the HYPE price. Yield is paid in HYPE on top of that. If you want a dollar-stable position, use [USDM](/guide/getting-started) instead. {% endhint %} ## What you need * A Web3 wallet connected to **Hyperliquid EVM (HyperEVM)**. * Some **native HYPE** on HyperEVM. This is the gas token itself, not a wrapped version. * Keep a little extra HYPE for gas; minting spends the amount you enter plus the transaction fee. ## The full flow ``` HYPE ──► (Mint) ──► mxHYPE │ ▼ (Stake) ──► smxHYPE ← yield grows here │ ▼ (Unstake + cooldown) ──► mxHYPE │ ▼ (Redeem + cooldown) ──► HYPE ``` Three important things: * **Minting and redeeming both use a 1:1 rate** between HYPE and mxHYPE. You don't gain or lose HYPE in the mint/redeem steps. * **Staking is where yield accrues.** smxHYPE's exchange rate to mxHYPE increases over time. * **Both unstaking and redeeming have cooldown periods** set by the protocol. You request → wait → claim. Each also offers an **Instant** option for a small fee when the protocol's buffer has liquidity. ## How the yield is generated Your HYPE principal is never sold or hedged. It stays in the vault as HYPE, which is why mxHYPE always redeems 1:1. On top of that principal, the vault runs a funding-capture position on Hyperliquid: 1. The deposited HYPE is posted as collateral under Hyperliquid's **Portfolio Margin**. 2. Against that collateral, the vault borrows **USDC** through Hyperliquid's borrow/lend pool. 3. The borrowed USDC funds an equal **HYPE spot long** and **HYPE perpetual short**. The pair has no net price risk; it exists to collect the funding rate that long speculators pay to shorts. 4. Net funding, after borrowing costs, is earned in USDC, converted back into HYPE, and injected into the smxHYPE exchange rate once a day. So the value of your position moves with the HYPE price (from the principal), and grows in HYPE terms (from the funding leg). Nothing about the funding leg changes your 1:1 claim on HYPE. ## Where to find it Open the Monetrix app and pick **mxHYPE** in the navigation. The layout is the same as USDM: the **mxHYPE** tab holds Mint and Redeem, the **Earn** tab holds Stake and Unstake, with HYPE, mxHYPE, and smxHYPE substituted in. The sidebar shows the remaining **Capacity** in HYPE. ## Quick steps 1. [**Mint mxHYPE**](/guide/getting-started-1/mint): send HYPE, receive mxHYPE 1:1 (1 transaction, no approval needed). 2. [**Stake mxHYPE**](/guide/getting-started-1/stake): approve mxHYPE to smxHYPE, stake to receive smxHYPE (2 transactions). Yield starts accruing. 3. **Hold**: the smxHYPE/mxHYPE exchange rate is updated daily as protocol earnings settle. 4. [**Unstake**](/guide/getting-started-1/stake#unstake): request to unwind your smxHYPE back to mxHYPE. Cooldown starts. When it's ready, Claim. 5. [**Redeem mxHYPE**](/guide/getting-started-1/redeem): request to redeem mxHYPE back to HYPE. A second cooldown starts. When it's ready, Claim. ## Read next * [Mint mxHYPE](/guide/getting-started-1/mint): step by step. * [Stake mxHYPE](/guide/getting-started-1/stake): how yield actually works. * [FAQ](/guide/getting-started-1/faq): short answers to common questions. # Mint mxHYPE Send native HYPE, get mxHYPE. The rate is always **1:1**. Minting by itself does not earn yield; for that, see [Stake mxHYPE](/guide/getting-started-1/stake). ## Prerequisites * Wallet connected to HyperEVM. * Native HYPE in your wallet: the amount you want to mint plus a little for gas. ## Steps Minting takes **one transaction**. Because HYPE is the chain's native token there is no ERC-20 approval step.
Earn with mxHYPE page: mxHYPE tab with Mint selected, HYPE amount input with Balance and Max, Receive mxHYPE at 1:1, sidebar showing mxHYPE capacity
### 1. Enter the amount Open the **mxHYPE** product. With the **mxHYPE** tab selected at the top, choose **Mint** and enter how much HYPE you want to convert. The app shows: * Your HYPE balance. * A **Max** button to fill your balance (leave some HYPE for gas). * The mxHYPE you will receive, which equals the HYPE you send. ### 2. Mint mxHYPE Click **Mint mxHYPE** and confirm in your wallet. The HYPE is sent as the transaction's value. The transaction calls `HypeVault.deposit()` with your HYPE attached. If it succeeds: * Your HYPE is transferred to the vault. * You receive exactly the same amount of mxHYPE (1:1 ratio). * A toast confirms the mint. ### 3. Verify Your mxHYPE balance should update. You can also look up the transaction on the HyperEVM explorer. ## What can cause a mint to fail The app pre-checks these conditions before sending the transaction. If any fail you'll see a message on the button or a toast instead of a wallet prompt: * **Vault is paused**: the protocol is in an emergency paused state. * **Minimum deposit**: your amount is below the per-transaction minimum (currently **0.1 HYPE**). * **Maximum deposit**: your amount is above the per-transaction cap (currently **3,000 HYPE**). * **Exceeds remaining capacity**: your mint would push total mxHYPE supply above the product's capacity cap (currently **50,000 HYPE**). The remaining capacity is shown in the sidebar. These values are read from the `HypeConfig` contract at the time of your transaction, so they reflect live protocol settings. Governance can adjust them. ## After minting Holding mxHYPE does **not** earn yield on its own. To start earning, go to [**Stake mxHYPE**](/guide/getting-started-1/stake). If you only want to exit back to HYPE, see [**Redeem mxHYPE**](/guide/getting-started-1/redeem). Note the redeem path has a cooldown. # Stake & Unstake **Staking is where you actually earn yield.** When you stake mxHYPE, you receive **smxHYPE**, a receipt token whose exchange rate to mxHYPE grows as the protocol settles its earnings. Unstaking is a two-step process with a cooldown period, or an instant exit for a small fee. {% hint style="info" %} **Current unstake cooldown: 1 day.** This value is read live from `HypeConfig.unstakeCooldown()` and can be adjusted by governance. The active value is always shown in the UI and is authoritative. {% endhint %} ## How the exchange rate works ``` 1 smxHYPE = X mxHYPE (X grows over time) ``` The app shows the current rate under the **Earn** tab, e.g. `1 smxHYPE = 1.0014 mxHYPE`. When you stake, you receive `amount / X` smxHYPE. When you unstake, you receive your smxHYPE × (current rate) in mxHYPE, which is more than you put in because the rate has grown. * **Decimals**: mxHYPE has 18 decimals, smxHYPE has 24. * **Yield is settled daily.** The rate update reflects yield accrued from 00:00 UTC the previous day to 00:00 UTC today, as the banner under the Earn tab explains. No claim transaction, no compound button. * **Yield is denominated in HYPE.** The rate grows in mxHYPE terms; the dollar value of your position also moves with the HYPE price. ## Stake
Stake mxHYPE page: Earn tab with Stake selected, current rate 1 smxHYPE = 1.0014 mxHYPE, daily exchange-rate update notice, mxHYPE amount input and smxHYPE receive estimate
### 1. Enter the amount Select the **Earn** tab at the top, then **Stake**. Enter the mxHYPE amount you want to stake. The app displays: * Your mxHYPE balance. * The estimated smxHYPE you'll receive at the current rate. ### 2. Approve mxHYPE Click **Approve & Stake mxHYPE**. The first wallet prompt approves the smxHYPE contract to pull your mxHYPE. {% hint style="info" %} Approve is per-amount. If your existing approval already covers the amount, the button reads **Stake mxHYPE** and the approval prompt is skipped. {% endhint %} ### 3. Stake The second prompt is the stake itself. The transaction calls `smxHYPE.deposit(amount, yourAddress)`. Your mxHYPE is transferred in, and smxHYPE is minted to your wallet at the current rate. ### That's it; yield starts now Your smxHYPE balance doesn't change, but its **redemption value in mxHYPE** grows with each daily settlement. You can watch the `1 smxHYPE = X mxHYPE` line tick up. ## Unstake Unstaking has two modes, chosen from the dropdown next to the button: * **Standard**: no fee. Request now, claim after the cooldown. * **Instant**: 0.3% fee. Receive mxHYPE immediately, subject to availability (see below). ### 1. Request an unstake Under the **Earn** tab, switch to **Unstake**. Enter the smxHYPE amount you want to unstake. The app displays: * Your smxHYPE balance. * The estimated mxHYPE you'll receive at the current rate. Click **Unstake smxHYPE** and confirm. The transaction calls `smxHYPE.cooldownShares(amount)`. No approval is needed for this step. After this, the cooldown starts. A new card appears under **Unstake requests** with status `Cooldown` and a countdown timer. {% hint style="warning" %} Your smxHYPE is burned at request time and the corresponding mxHYPE is held in escrow. The exchange rate at the time of the request is the rate used at claim; you don't get additional yield during the cooldown. {% endhint %} ### 2. Wait for the cooldown The **Waiting** column counts down. The cooldown length (currently **1 day**) is set in the protocol config and shown live in the UI. Governance can adjust this parameter; future changes will be announced before they take effect. ### 3. Claim your mxHYPE When the cooldown ends, the request's badge flips from `Cooldown` to `Ready` (green) and the button changes to **Claim**. Click **Claim** and confirm. The transaction calls `smxHYPE.claimUnstake(requestId)` and sends the escrowed mxHYPE to your wallet. ### Instant unstake Select **Instant (0.3% fee)** from the dropdown. The app quotes the mxHYPE you will receive and the fee. If instant exit is available, click **Unstake smxHYPE**: the first prompt approves smxHYPE to the instant-exit contract, the second calls `instantExit(amount)`. You receive mxHYPE in the same transaction; no cooldown. Instant exit is served from a protocol-funded buffer, so it is not always available. The app shows **Instant Exit Unavailable** and a reason when: * Instant exit is paused. * Your amount is below the instant minimum (currently **2 smxHYPE**). * The buffer doesn't hold enough mxHYPE for your amount. Try a smaller amount or use Standard. * The instant queue is full. ## After unstaking You now hold plain mxHYPE. You can: * **Re-stake it** to earn yield again. * **Redeem it** to HYPE; see [Redeem mxHYPE](/guide/getting-started-1/redeem). Note that redeem has its own, separate cooldown. ## Troubleshooting * **"Insufficient mxHYPE balance"**: check your mxHYPE balance; you may need to [mint](/guide/getting-started-1/mint) first. * **"Insufficient smxHYPE balance"** (on Unstake): you're trying to unstake more than you hold. * **Rate looks static**: the smxHYPE rate updates once a day when the protocol settles earnings, not every block. * **"Strategy operations are paused" banner**: the protocol's hedging operations are temporarily paused. Mint, stake, and cooldown requests still work; the rate won't move until operations resume. # Redeem mxHYPE Redeeming mxHYPE converts it back to native HYPE at a **1:1 ratio**. Redemption is a two-step process: **request** now, **claim** after a cooldown. An **Instant** option with a small fee is also available when the protocol's buffer has liquidity. {% hint style="info" %} **Current cooldown: 2 days.** This value is read live from `HypeConfig.redeemCooldown()` and can be adjusted by governance. The active value is always shown in the UI and is authoritative. {% endhint %} {% hint style="info" %} If your mxHYPE came from unstaking smxHYPE, the yield you earned was already realized at the claim step. Redeem is just converting mxHYPE back to HYPE. {% endhint %} ## Standard redeem ### 1. Request a redemption With the **mxHYPE** tab selected at the top, choose **Redeem** and enter the mxHYPE amount you want to redeem. Make sure **Standard** is selected in the dropdown next to the button. The app displays: * Your mxHYPE balance. * The HYPE you will receive (equal to the mxHYPE amount). * A tip showing the **cooldown length** read live from the protocol config. Click **Approve & Redeem mxHYPE**. The first wallet prompt approves the vault to take your mxHYPE, the second calls `HypeVault.requestRedeem(amount)`. After this, the cooldown starts. A new card appears under **Redeem requests** with status `Cooldown` and a countdown timer. {% hint style="warning" %} Your mxHYPE is transferred to the vault at request time and held as a claim on HYPE. The 1:1 rate is locked in when you request; the mxHYPE in a pending request does not earn yield (it was never staked). {% endhint %} ### 2. Wait for the cooldown The **Waiting** column counts down. The cooldown length (currently **2 days**) comes from `HypeConfig.redeemCooldown()` and is displayed live in the UI. Governance can adjust this parameter; future changes will be announced before they take effect. ### 3. Claim your HYPE 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 `HypeVault.claimRedeem(requestId)`, burns the mxHYPE, and sends native HYPE to your wallet at the 1:1 rate. ### "Waiting for liquidity" Occasionally a request's cooldown has ended but the badge shows **Waiting for liquidity** instead of Ready. This means the redemption escrow does not yet hold enough HYPE to pay your request. The protocol replenishes the escrow as it unwinds positions; no action is needed on your side. Check back later and the badge will flip to Ready. ## Instant redeem Select **Instant (0.3% fee)** from the dropdown. The app quotes the HYPE you will receive and the fee. If instant exit is available, click **Redeem mxHYPE**: the first prompt approves mxHYPE to the instant-redeem contract, the second calls `instantExit(amount)`. You receive HYPE in the same transaction; no cooldown. Instant redeem is served from a protocol-funded buffer, so it is not always available. The app shows **Instant Exit Unavailable** and a reason when: * Instant exit is paused. * Your amount is below the instant minimum (currently **2 mxHYPE**). * The buffer doesn't hold enough HYPE for your amount. Try a smaller amount or use Standard. * The instant queue is full. ## 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. ## Troubleshooting * **"Insufficient mxHYPE balance"**: check your mxHYPE balance. * **Cooldown shows `-` (dash)**: the cooldown has ended; the Claim button should be active, unless the card says Waiting for liquidity. * **Claim fails / gas estimation fails**: usually means the request isn't ready yet, or the escrow is still short of HYPE. Refresh the page and check the badge. * **"Switch your wallet to HyperEVM Mainnet"**: your wallet is on another network. Switch to HyperEVM and retry. # FAQ Short answers to common questions about the HYPE product. For the general protocol FAQ, see the [USDM FAQ](/guide/getting-started/faq). ## Product ### What is mxHYPE? A HYPE-denominated token on HyperEVM. You mint it 1:1 with native HYPE and redeem it 1:1 back to HYPE (with a cooldown). ### What is smxHYPE? The yield-bearing receipt you receive when you stake mxHYPE. Its exchange rate to mxHYPE grows over time as the protocol settles yield. smxHYPE is where the yield lives. ### Is mxHYPE a stablecoin? **No.** mxHYPE tracks HYPE, not the dollar. If HYPE's price falls, the dollar value of your mxHYPE and smxHYPE falls with it. Yield is earned in HYPE on top of that price exposure. For a dollar-stable position, use [USDM](/guide/getting-started). ### Do I earn yield just by holding mxHYPE? **No.** mxHYPE alone does not earn yield; it's a receipt for HYPE. To earn yield you must [**stake mxHYPE**](/guide/getting-started-1/stake) and hold smxHYPE. ### How is this different from staking HYPE with a validator? Monetrix does not delegate your HYPE to validators. The yield comes from a delta-neutral strategy on Hyperliquid (see below), which is independent of validator rewards. ## Yield ### Where does the yield come from? Your HYPE stays HYPE; it is not hedged. On top of it, the vault runs a funding-capture position on Hyperliquid: an equal HYPE spot long and HYPE perpetual short, which carries no net price risk and collects the funding rate that long speculators pay to shorts. Net funding (after borrowing costs) is earned in USDC and converted back into HYPE before it is distributed, so smxHYPE holders receive their yield in HYPE. ### How do I receive the yield? Stake mxHYPE, hold smxHYPE. The smxHYPE/mxHYPE exchange rate is updated **once a day**, reflecting yield accrued from 00:00 UTC the previous day to 00:00 UTC today. No claim transaction. ### What APY can I expect? APY is not fixed. It tracks live HYPE funding rates and lending demand on Hyperliquid. The APY shown in the app is a 7-day average and will vary. ## Cooldowns and exits ### How long are the cooldowns? Currently **1 day** to unstake (smxHYPE → mxHYPE) and **2 days** to redeem (mxHYPE → HYPE). Both values are read live from the protocol config and shown in the app. They are separate: unstaking then redeeming takes both cooldowns back to back. ### What is the Instant option? Both Unstake and Redeem offer an **Instant** mode that pays you immediately from a protocol-funded buffer for a **0.3% fee**. It requires a minimum of 2 smxHYPE / 2 mxHYPE and only works when the buffer holds enough for your amount. If it's unavailable, use Standard. ### What does "Waiting for liquidity" mean on a redeem request? The cooldown has finished but the redemption escrow doesn't yet hold enough HYPE to pay out. The protocol tops up the escrow as it unwinds positions. Wait and check back; no action is needed. ### Can I cancel an unstake or redeem request? Not directly. Once requested, you wait for the cooldown and claim. ## Limits ### Is there a cap on how much I can mint? Yes. Per transaction: minimum 0.1 HYPE, maximum 3,000 HYPE. Overall product capacity: 50,000 HYPE, with the remaining capacity shown in the app sidebar. Governance can change these values. ## Mechanics ### What decimals do the tokens use? mxHYPE: 18 decimals (matches HYPE). smxHYPE: 24 decimals. ### Do I need to approve anything? Minting needs no approval because HYPE is the native token. Staking, standard redeem, and instant exits each ask for an exact-amount approval before the main transaction. ### Where are the contracts? On **HyperEVM**. Canonical addresses for the mxHYPE contracts are listed on [Audits & Contracts](/risk-and-security/audits-and-contracts). ### Where do I get support? See the [Resources](/resources/resources) page for contact and community channels. # Delta-Neutral Strategy 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. ## The basic idea 1. A user deposits USDC, then the protocol buys an equivalent dollar amount of spot assets (BTC, ETH, and HYPE). 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. ## The four yield streams | Source | What drives it | | ----------------- | ----------------------------------------------------------------------- | | **Funding rate** | Long speculators paying short holders for leverage | | **Spot lending** | Interest earned on the spot collateral via Hyperliquid's native lending | | **Maker rebates** | Fees earned by executing hedges as a market maker instead of a taker | | **Dynamic HLP** | Additional yield from Hyperliquid's HLP vault when funding compresses | ## 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. ## Where the yield actually ends up The protocol's earnings flow into the **sUSDM exchange rate**: ``` 1 sUSDM today = 1.0000 USDM 1 sUSDM in 6 months = 1.10 USDM (example) ``` 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. {% hint style="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](/guide/getting-started/stake). {% endhint %} ## 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](/how-it-works/hyperliquid-native). # Protocol Architecture 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
## 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, so 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. ## 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. ## 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](/how-it-works/delta-neutral-strategy). # Hyperliquid-Native Advantage 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. ## Your spot collateral is also your hedge margin On most DEXs, spot and perpetual markets are walled off, so 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. ## 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. ## 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. ## 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. ## 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. # Yield Composition
Multi-Layered — Funding + BLP + Maker rebates + HLP incentives combined
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. ## 1. Funding Yield **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. ## 2. Spot Lending Yield **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. ## 3. Maker Rebates **What it is:** Fees paid to liquidity providers on Hyperliquid's orderbook. **How it's captured:** Initial hedge entries are typically executed as **takers** with market orders so price exposure is neutralized the moment USDC arrives. The maker rebate stream comes from the slower, scheduled flows where the engine can afford to post limit orders and wait - primarily **rebalancing**, **ADL-queue hygiene maintenance**, and **anti-ADL re-opens** (see [Anti-ADL Shield](/risk-and-security/anti-adl-shield)). Across a position's lifetime, these maker-side fills accumulate into a meaningful rebate stream. **Why it's structural:** The rebate comes from trading the protocol has to do anyway as positions are maintained. It's execution efficiency converted into a yield stream. ## 4. Dynamic HLP Yield **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. ## Dominant contributor by market regime | Market Regime | Dominant Contributor | | ------------- | ----------------------------- | | **Bull** | Funding | | **Neutral** | Lending + Maker Rebates + HLP | | **Bear** | HLP + Maker Rebates | The mix shifts with market conditions. Live yield depends on Hyperliquid funding rates, lending demand, trading volume, and protocol allocation. ## 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. # Native Anti-ADL Shield
Risk Mitigation — Native Anti-ADL, transparent real-time engine
**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. ## How the shield works Three subsystems work together to **prevent, detect, and recover from** ADL events. ### 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. ### 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. ### 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. ## 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. ## 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. ## 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. ## 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. # Security Design
Operational Security — logic is fully automated and hardcoded on-chain
{% hint style="info" %} **TL;DR for LPs** **What it is:** USDC deposits are minted into USDM and allocated into a transparent delta-neutral portfolio on Hyperliquid: USDC reserve, spot BTC/ETH/HYPE, and matching short perp hedges. **Main risks:** smart contract risk, Hyperliquid venue risk, hedge execution risk, funding-rate variability, liquidity and redemption risk, and operational risk. **External dependency:** Hyperliquid is the primary platform dependency. There is no CEX execution path. **Verification goal:** make backing, hedge, margin, and allocation data visible and measurable in real time, so LPs do not have to rely on a black-box strategy. {% endhint %} Monetrix takes USDC deposits, mints USDM, and allocates the backing capital into a transparent delta-neutral portfolio on Hyperliquid. The goal of this page is to make the protocol's risk surface explicit, not to claim it away. Beyond the [Anti-ADL Shield](/risk-and-security/anti-adl-shield), the security model rests on four layers: an external audit program, fully automated on-chain logic, dynamic risk-aware allocation, and conventional smart contract hardening, plus a transparency layer that lets LPs verify backing and hedge state at any time. ## 1. Audit program ### Code4rena (C4) competitive audit Monetrix's core contracts are reviewed through a [Code4rena (C4)](https://code4rena.com) competitive audit. C4 puts the codebase in front of a large pool of independent security researchers competing on the same scope, which complements the depth of a single-firm engagement with breadth of perspective. * **In scope.** USDM, sUSDM, `MonetrixVault`, `MonetrixConfig`, strategy execution modules, access control, and emergency paths. * **Outcome.** All findings within scope are triaged, severity-rated, and either fixed before mainnet or explicitly acknowledged with mitigations. * **Report.** The final C4 report and the remediation log will be linked here as soon as the audit closes. ### Additional review and bug bounty * **Tier-1 firm review** scheduled pre-mainnet, recurring post-mainnet on every material upgrade. * **Ongoing bug bounty** after launch, with severity-scaled payouts to give researchers economic incentive for responsible disclosure. * **Dedicated insurance fund** sized to absorb black-swan funding events and bridge temporary hedge imbalances, funded from protocol reserves. ## 2. 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**. ## 3. 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. ## What you can verify on-chain Backing capital lives in three buckets, all visible on-chain: * **USDC reserve.** Operational liquidity supporting redemptions, rebalancing, and risk buffers. * **Spot positions.** BTC, ETH, and HYPE held as backing. Not directional bets; each spot exposure is paired with an equivalent short perp. * **Short perpetual hedges.** Opened against each spot exposure to neutralize price movement and capture funding when available. The key portfolio metrics are public Hyperliquid state, so LPs and integrators can monitor the system at any time: * USDC reserve balance * Spot position balances * Short perpetual hedge sizes * Hedge ratio * Net delta exposure * Margin health * USDM outstanding * Backing ratio * Strategy PnL and funding performance This is the practical meaning of "not a black box": every input to the backing claim is a public on-chain value, not a self-reported number. ## Risk framework Monetrix is not risk-free. The goal is to make each risk explicit and continuously measurable. ### Smart contract risk Risk concentrates around deposit and withdrawal logic, USDM mint and redeem accounting, access control, strategy execution permissions, and emergency controls. Mitigations: external audit before mainnet, ongoing bug bounty, and phased TVL caps during the initial deployment period. Audits and bounties reduce but do not eliminate this risk; size your position accordingly. ### Hyperliquid venue risk Hyperliquid is the primary external platform dependency. There is no additional CEX in the execution path, which removes one class of counterparty risk, but it concentrates dependency on a single venue. The risk surface includes execution, the margin system, oracle and mark price, the liquidation engine, infrastructure downtime, and liquidity under stress. The protocol inherits Hyperliquid's security properties; it does not stand above them. ### Hedge execution risk The strategy depends on keeping spot and short perpetual positions matched. The relevant failure modes are hedge ratio drift, execution slippage, insufficient perp liquidity, funding-regime changes, and rapid market moves arriving faster than rebalancing. The [Anti-ADL Shield](/risk-and-security/anti-adl-shield) addresses the most acute version of this, being force-closed by Hyperliquid's ADL mechanism, through queue-rank monitoring, automated re-open, and rolling queue hygiene. Net delta, hedge ratio, and margin health are monitored continuously. ### Funding-rate risk Yield is strategy-driven and market-dependent. Funding rates can decline, turn negative, become asset-specific, or shift quickly under stress. Dynamic HLP rebalancing and the four-source yield composition (see [Yield Composition](/yield/composition)) are designed to hold the floor when funding compresses, but **Monetrix does not offer a fixed yield**. ### Liquidity and redemption risk A portion of assets is deployed in active positions. In normal conditions, redemptions are supported by reserves and routine position unwinds. Under stress, expect wider spreads, slower unwinds, higher slippage, and potentially temporary redemption constraints. Reserve buffers, TVL caps, and phased onboarding are the launch-period mitigations. ### Operational risk Risk arises around rebalancing execution, monitoring systems, keeper reliability, and emergency response. Defined roles, monitoring, and incident procedures cover rebalancing, margin health, and abnormal market conditions. As more logic moves on-chain over time, the surface narrows. ## Governance and parameters Early-stage parameters (fees, allocation bounds, ADL thresholds, TVL caps) 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. ## 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](/resources/resources) page. # Audits & Contracts Monetrix's smart contracts are reviewed by professional auditors and the broader security community, and every deployed contract is published here so anyone can verify the system on-chain. ## Audits {% embed url="" %} Monetrix audit — Code4rena {% endembed %} ## Deployed contracts ### USDM #### Tokens | Contract | Address | | -------- | -------------------------------------------------------------------------------------------------------------------------- | | USDM | [`0xE2d2959f89B6389DeB624bF076Fe7D9E5401f377`](https://hyperevmscan.io/address/0xE2d2959f89B6389DeB624bF076Fe7D9E5401f377) | | sUSDM | [`0x5f1ab62C3159eBE04aFF14Beef84b0b60de63DDF`](https://hyperevmscan.io/address/0x5f1ab62C3159eBE04aFF14Beef84b0b60de63DDF) | #### Core protocol | Contract | Address | | ------------------ | --------------------------------------------------------------------------------------------------------------------------------------- | | MonetrixVault | [`0x5586c2c8223C73Ec0B41D6352748e6c173372E11`](https://hyperevmscan.io/address/0x5586c2c8223C73Ec0B41D6352748e6c173372E11) | | MonetrixCoreVault | [`0x6E25e5D971BDa9799F7A5242f4720b5B3f939200`](https://app.hyperliquid.xyz/explorer/address/0x6E25e5D971BDa9799F7A5242f4720b5B3f939200) | | MonetrixAccountant | [`0x8950A5136f3994f82b998e37e1183b8A37c12705`](https://hyperevmscan.io/address/0x8950A5136f3994f82b998e37e1183b8A37c12705) | | MonetrixConfig | [`0x01313E95c0dD7FD4AD67Edc39823B079f6734Cee`](https://hyperevmscan.io/address/0x01313E95c0dD7FD4AD67Edc39823B079f6734Cee) | | InsuranceFund | [`0x4D9f48F3055FA354254B1CA82a0badb88f7c2106`](https://hyperevmscan.io/address/0x4D9f48F3055FA354254B1CA82a0badb88f7c2106) | #### Redemption & Staking | Contract | Address | | -------------- | -------------------------------------------------------------------------------------------------------------------------- | | RedeemEscrow | [`0xa118B1DBEb940944D071DBeC787A2D2e8D3B6578`](https://hyperevmscan.io/address/0xa118B1DBEb940944D071DBeC787A2D2e8D3B6578) | | sUSDMEscrow | [`0xD81600838Ab778D49038Df9c3B78CDcA244E3707`](https://hyperevmscan.io/address/0xD81600838Ab778D49038Df9c3B78CDcA244E3707) | | YieldEscrow | [`0x12E4F1a26dc008e68C0E77A60881680eDa91c58C`](https://hyperevmscan.io/address/0x12E4F1a26dc008e68C0E77A60881680eDa91c58C) | | InstantRedeem | [`0xaa556b9755C249F9B6b98F89dd20C5D4997B8F32`](https://hyperevmscan.io/address/0xaa556b9755C249F9B6b98F89dd20C5D4997B8F32) | | InstantUnstake | [`0xaaCE6A69C27dF3F92763F688606335cBf3CE329d`](https://hyperevmscan.io/address/0xaaCE6A69C27dF3F92763F688606335cBf3CE329d) | #### Governance & Access Control | Contract | Address | | ------------------------ | -------------------------------------------------------------------------------------------------------------------------- | | MonetrixAccessController | [`0x301024E319191495146AB3627fe3Fc1FfE586595`](https://hyperevmscan.io/address/0x301024E319191495146AB3627fe3Fc1FfE586595) | | Timelock (24h) | [`0x6f00b0Fbc805a8319b4837BB152F4FE700A329BF`](https://hyperevmscan.io/address/0x6f00b0Fbc805a8319b4837BB152F4FE700A329BF) | | Timelock (48h) | [`0xDe54E1F99752062ef448Dcc6C7636f90214C789e`](https://hyperevmscan.io/address/0xDe54E1F99752062ef448Dcc6C7636f90214C789e) | ### mxHYPE #### Tokens | Contract | Address | | -------- | -------------------------------------------------------------------------------------------------------------------------- | | mxHYPE | [`0x0fAfAD2825aa646fDf343A0786D0dC1A842543b6`](https://hyperevmscan.io/address/0x0fAfAD2825aa646fDf343A0786D0dC1A842543b6) | | smxHYPE | [`0xf6B61A1d49B67aC907d825F26e2877F1Ec4f0aE8`](https://hyperevmscan.io/address/0xf6B61A1d49B67aC907d825F26e2877F1Ec4f0aE8) | #### Core protocol | Contract | Address | | ----------------- | -------------------------------------------------------------------------------------------------------------------------- | | HypeVault | [`0x270A9d32F893A5D3ff1878185010894dd890593D`](https://hyperevmscan.io/address/0x270A9d32F893A5D3ff1878185010894dd890593D) | | HypeAccountant | [`0xAcE53c4ef6619E7850E7d5fa45b8410C725D266D`](https://hyperevmscan.io/address/0xAcE53c4ef6619E7850E7d5fa45b8410C725D266D) | | HypeConfig | [`0xBCD2D818FDb0214e90c8fC36e3cdE47218670835`](https://hyperevmscan.io/address/0xBCD2D818FDb0214e90c8fC36e3cdE47218670835) | | HypeInsuranceFund | [`0xc202807f344d16a41a9c107A3c9B0b494124A7C5`](https://hyperevmscan.io/address/0xc202807f344d16a41a9c107A3c9B0b494124A7C5) | #### Redemption & Staking | Contract | Address | | ----------------- | -------------------------------------------------------------------------------------------------------------------------- | | HypeRedeemEscrow | [`0x044B1d5d469584BbD0D380BDEFAfFb4c6046187F`](https://hyperevmscan.io/address/0x044B1d5d469584BbD0D380BDEFAfFb4c6046187F) | | smxHYPEEscrow | [`0x622De41CE43F6E921d0627B281E92b3079d742dC`](https://hyperevmscan.io/address/0x622De41CE43F6E921d0627B281E92b3079d742dC) | | HypeYieldEscrow | [`0x3620db9411907351C28c9ab26A8A51B15699B071`](https://hyperevmscan.io/address/0x3620db9411907351C28c9ab26A8A51B15699B071) | | InstantHypeRedeem | [`0x80e9b092395fda5d4391aE03ACa6Afcf2bAe3051`](https://hyperevmscan.io/address/0x80e9b092395fda5d4391aE03ACa6Afcf2bAe3051) | | InstantUnstake | [`0x930Ec4B9066fCDa704501CFEf286e6f095EF2450`](https://hyperevmscan.io/address/0x930Ec4B9066fCDa704501CFEf286e6f095EF2450) | #### Governance & Access Control | Contract | Address | | ------------------------ | -------------------------------------------------------------------------------------------------------------------------- | | MonetrixAccessController | [`0x212360D36E5efAAA947f64f46a5796FBc0aCDc36`](https://hyperevmscan.io/address/0x212360D36E5efAAA947f64f46a5796FBc0aCDc36) | | Timelock (24h) | [`0x6f00b0Fbc805a8319b4837BB152F4FE700A329BF`](https://hyperevmscan.io/address/0x6f00b0Fbc805a8319b4837BB152F4FE700A329BF) | | Timelock (48h) | [`0xDe54E1F99752062ef448Dcc6C7636f90214C789e`](https://hyperevmscan.io/address/0xDe54E1F99752062ef448Dcc6C7636f90214C789e) | # Monetrix vs Alternatives
No Counterparty Risk — no funds on centralized exchanges, immune to insolvency events
How does Monetrix compare to existing delta-neutral synthetic dollars? | Feature | **Monetrix** (Hyperliquid-Native) | **Ethena (USDe)** | **Other 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 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 | ## What the differences actually mean ### 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. ### Other delta-neutral 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. ### 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. ## 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. ## 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 | Other delta-neutral vaults | | Non-yield-bearing fiat-backed stable | USDC / USDT | Monetrix is not trying to replace all of the above. It targets users who prioritize **transparent, verifiable, all-weather yield** on a fully on-chain stable token. # Overview > **Pre-TGE framework.** Final allocation percentages, vesting schedules, token counts, and emission curves will be published before TGE. Until then, this page explains the intended token categories and design principles, not final token terms. ## Tokens in the Monetrix system ### 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. ### (Governance / incentive token): TBD Details to be disclosed before TGE. ## 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 | ## 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. ## 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. ## 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](/resources/resources) page for announcements. # Team Monetrix is built by the Hybra team. The titles below refer to each member's role within Hybra.
nameHybra titleremark
leo
https://x.com/leo_build_hl		Founderformer co-founder of a unicorn startup, experienced in DeFi.

known for his exceptional patience, persistence, and long-term commitment. combines deep technical understanding with a steady, reliable approach
syc
https://x.com/Sychype		Head of Growthseasoned DeFi and marketing professional with deep experience in project growth, ecosystem partnerships, and GTM strategy.

previously led campaigns for major Web3 brands and oversaw multiple portfolio projects at VC.

known for his patience, integrity, and strong network across the ecosystem, he brings both execution and long-term vision to Monetrix.
kaneCTOyears of engineering and management experience in the tech industry, former senior engineer at FLAG , and deep expertise in smart contract architecture and security design.
# Links & Contact ## Community & Contact Use the official link hub for the latest Monetrix community, announcement, and contact channels: * Official link hub: * Twitter / X: * Discord: * Telegram: see the official link hub * Email: see the official link hub ## 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. ## Security disclosures Responsible disclosure channels will be published at mainnet launch. For critical issues before then, reach out via the contact channels above. # Terms & Disclaimer This page is an informational risk and use notice for Monetrix documentation and interfaces. ## Acceptance of risk By accessing Monetrix documentation, interfaces, smart contracts, or related services, you acknowledge that DeFi protocols involve material risk. You are responsible for understanding those risks before depositing, minting, staking, redeeming, or otherwise interacting with the protocol. Key risks include, but are not limited to: * **Smart contract risk.** Bugs, design errors, access-control failures, upgrade mistakes, or integration issues can cause loss of funds. * **Market and strategy risk.** Monetrix uses delta-neutral strategy mechanics, but hedge execution, liquidity, funding rates, slippage, and extreme market events can affect performance. * **Protocol dependency risk.** Monetrix is Hyperliquid-native, so it depends on Hyperliquid execution, margin, oracle, liquidation, and infrastructure behavior. * **Liquidity and redemption risk.** Redemptions and unstakes can require cooldowns. Under stress, exits may be slower, more expensive, or temporarily constrained. * **Operational risk.** Monitoring systems, keepers, parameter changes, governance processes, emergency controls, and frontend infrastructure can fail or behave unexpectedly. ## No guaranteed yield Monetrix does not guarantee a fixed yield, fixed return, or fixed redemption timing. Any displayed yield, APR, APY, funding rate, portfolio value, or projected result is informational and may change with market conditions, protocol parameters, and execution outcomes. ## Eligibility and restricted access You may not use Monetrix if doing so would violate applicable law, regulation, sanctions rules, or restrictions in your jurisdiction. You are responsible for determining whether you are permitted to access or use the protocol, interface, documentation, or related services. Monetrix may restrict access to the interface or services for users, wallets, jurisdictions, or activities where required by applicable law, sanctions compliance, risk controls, or internal policy. ## No investment advice Nothing in the documentation, interface, community channels, or related materials is an offer to sell, a solicitation to buy, financial advice, investment advice, or a recommendation to enter any transaction. You should make your own decision and consult qualified advisors where appropriate. ## User responsibility You are responsible for: * Securing your wallet and private keys. * Verifying contract addresses and transaction details before signing. * Understanding cooldowns, redemption mechanics, and strategy risks. * Paying gas and transaction costs. * Complying with all laws and obligations that apply to you. Transactions on-chain are generally irreversible. Monetrix cannot reverse user mistakes, compromised-wallet transactions, or interactions with malicious third-party links. ## Third-party links and services The documentation may link to third-party websites, wallets, explorers, bridges, analytics tools, social platforms, or ecosystem partners. Those services are outside Monetrix control. Links are provided for convenience and do not imply endorsement, guarantee, or responsibility for third-party content, security, availability, or accuracy. ## Changes Protocol parameters, documentation, risk disclosures, interface behavior, and these terms may change over time. The latest published documentation and official channels should be treated as the current reference, but users remain responsible for independently verifying material information before acting.