Current APY: USDC - 100.68% HYPE - 40.67% 7d APY: USDC - 20.21% HYPE - 7.29% FAQ 1⃣Is it safe? Seeing high APYs doesn't automatically mean the strategy is unsafe. You just need to understand where the yield comes from. 2⃣Where does the APY come from? From HYPE funding rates. When you deposit USDC or HYPE into Monetrix, they use it to open a delta-neutral position on Hyperliquid (buying spot HYPE + opening a short HYPE position) with the same notional. This means the position doesn't change in value if HYPE goes up or down. The strategy simply earns or pays funding on the short position. The average HYPE funding rate was 9.45% APR over the last month, and it has remained positive. 3⃣But if HYPE funding is 9.45% APR, shouldn't the APY be around 9% or less? Not at all. Monetrix uses Hyperliquid's Portfolio Margin feature. It was the first project to use it for this strategy. Basically, if you hold HYPE, BTC or ETH, you can use those assets as collateral to open positions. Applied to Monetrix's delta-neutral strategy, this allows them to add some leverage to the position while using the spot asset as collateral. With USDC, you can use your entire deposit. With HYPE, you can only use less than half because you need to start borrowing. 4⃣Wow... but is this feature and strategy actually safe? The strategy itself is well established: Ethena uses a similar delta-neutral approach (USDe/sUSDe), although it executes the hedges on centralized exchanges rather than Hyperliquid. That doesn't mean either strategy is risk-free. The risks are different depending on the venue, collateral model, funding rates and implementation. If you're holding HYPE or stables and earning low APRs on lending protocols or similar strategies, Monetrix is worth looking into. At the very least, give it a try. 🔗