Aegis
  • Get Started
    • Introduction
    • Modern Money Problems
    • Aegis Solution
    • How It Works?
  • Overview
    • Profit Generation Mechanism
    • Profit Distribution Mechanism
    • Peg Stabilization Mechanism
    • Off-exchange settlement
    • Real-Time Transparency
    • Aegis Insurance Fund
    • Mint Security Layer
    • Scalability
    • Liquidity
    • Security
  • Risks
    • Counterparty Risks
    • Stabilization Risks
    • Operational Risks
    • Investment Risks
    • Regulatory Risks
  • Aegis FAQ
    • How can I buy YUSD?
    • How can I get my earned YUSD?
  • How can i stake YUSD?
  • Tokens
    • YUSD Stablecoin
    • sYUSD Stablecoin
    • Aegis Governance (AEG)
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  1. Overview

Profit Generation Mechanism

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Last updated 9 days ago

Delta-Neutral Position Opening Mechanism

Aegis employs a delta-neutral position opening mechanism using Coin-M futures, providing unparalleled stability and yield generation. This approach ensures that our operations remain independent of market volatility, offering consistent returns to our users.

Mechanism Overview

  • Delta-Neutral Strategy: Aegis achieves a delta-neutral position by holding Bitcoin as collateral and selling Bitcoin-margined perpetual contracts simultaneously. This strategy balances out any gains or losses due to Bitcoin’s price fluctuations, ensuring the stability of YUSD.

  • Coin-M Futures: These contracts are margined and settled in Bitcoin, allowing Aegis to leverage Bitcoin's inherent value and liquidity while mitigating exposure to price changes.

  • Funding Accrual: The funding rate is a periodic payment between long and short positions. The rate can be positive or negative depending on market conditions, effectively redistributing risk and ensuring market equilibrium. Aegis capitalizes on this by strategically positioning to earn funding fees, thus generating consistent yields for YUSD holders and sYUSD stakers.