How It Works?

Step-by-Step Process

1. Acquiring YUSD

Begin your journey with Aegis by acquiring YUSD through a DEX exchange (no KYC required) or directly via the Mint function (KYC included). To start earning rewards, simply register your wallet in the Aegis system.

2. Transfer to Custodial Vaults

All stablecoins are securely transferred to custodial vaults before being made available on exchanges. This ensures the highest security and integrity of the assets.

3. Off-Exchange Settlement

Once deposited in vaults, stablecoins are made available on exchanges through off-exchange settlement. This method mitigates the risks associated with centralized exchanges.

4. Delta-Neutral Position

Aegis purchases Bitcoin and opens a delta-neutral position using coin-margined perpetual contracts. This strategy effectively balances long and short positions to mitigate price fluctuations, ensuring stability.

5. Profit Generation

Aegis generates profits through delta-neutral arbitrage in spot and perpetual markets, earning from funding fees. These profits are derived from exploiting differences in funding rates across markets, providing consistent returns.

6. Mint Security Layer

Profits are deposited, and new YUSD is created. Aegis employs a mint security layer that ensures new YUSD is created only when collateral in USDT, USDC, or DAI is deposited into the Aegis Mint smart contract.

7. Claiming Rewards

Users can claim new YUSD every seven days. This process allows users to earn yields without staking, lockups, or waiting periods, ensuring immediate liquidity and perpetual rewards. For sYUSD — No action is required. Simply holding sYUSD is enough to receive rewards. Yield accrues automatically inside the staking contract, so each holder’s sYUSD balance—and therefore its value—increases steadily over time.