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
- Users deposit USDC collateral into our Gateway Vault
- Smart contract verifies the collateral
- USDhy is minted to user's wallet at 1:1 ratio
- Users can then stake their USDhy in strategy vaults to earn yield
Redemption Process
- Users initiate redemption request with their USDhy
- USDhy is removed from circulation immediately
- Original collateral is released within 24 hours
- 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