Technical Architecture

HYYY's architecture is built on three core pillars: yield-optimizing delta-neutral strategies, AI-driven position management, and efficient capital utilization through our vault system. Our system leverages Hyperliquid's high-performance DEX infrastructure to deliver a stable, capital-efficient ecosystem.

Minting Process

  1. Users deposit USDC collateral into our Gateway Vault
  2. Smart contract verifies the collateral
  3. USDhy is minted to user's wallet at 1:1 ratio
  4. Users can then stake their USDhy in strategy vaults to earn yield

Redemption Process

  1. Users initiate redemption request with their USDhy
  2. USDhy is removed from circulation immediately
  3. Original collateral is released within 24 hours
  4. Users can withdraw their collateral from the smart contract

Risk Management

Our multi-layered risk management framework includes:

  • Real-time monitoring: Continuous tracking of all delta-neutral positions, market conditions, and vault metrics
  • Health checks: Regular validation of position health and system parameters
  • Circuit breakers: Automatic suspension of minting/redemption during extreme market conditions or technical anomalies
  • Emergency shutdown: Coordinated unwinding of positions and return of collateral in crisis scenarios

System Diagram

graph TD A@{ shape: curv-trap, label: "User Interface" } --> B[Smart Contract Layer] B --> C[Delta-Neutral Engine] B --> D@{ shape: procs, label: "Position Manager"} C --> E[Hyperliquid DEX] D --> E E --> F[(Market Data Feed)] F --> D

Position Manager

The Position Manager is a critical component that orchestrates all trading activities and risk management operations. It's designed with a unique approach that combines AI-driven automation with human oversight capabilities:

  • Open Architecture: While optimized for AI agents, the position manager exposes all functionality through public APIs, enabling both AI and human managers to participate
  • Standardized Interface: All position management operations are conducted through a unified API layer, ensuring consistent behavior regardless of the manager type
  • Real-time Monitoring: Continuous tracking of position health, market conditions, and risk parameters
  • Automated Adjustments: Dynamic position sizing and rebalancing based on market conditions and system parameters

Performance Metrics

  • Minting ratio: 1:1 with USDC
  • Position establishment: < 24 hours
  • Redemption processing: 24-hour release
  • Gas efficiency: Optimized for Hyperliquid