Profit Generation Mechanism

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 of USDa.

• 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 USDa holders.