USDhy: Gateway to Strategy Vaults

USDhy serves as the gateway token in HYYY's vault ecosystem, enabling users to enter the protocol's strategy vaults. Created through 1:1 conversion of USDC in the Gateway Vault, USDhy provides the foundation for accessing various yield-generating strategies.

Core Mechanics

USDhy maintains its dollar peg through:

  • 1:1 backing with USDC in the Gateway Vault
  • Seamless conversion process
  • Instant liquidity for entry and exit
  • Transparent on-chain verification

Strategy Tokens Overview

When USDhy is staked in strategy vaults, users receive corresponding yield-bearing tokens:

  • stUSDhyy-C: Conservative vault strategy token
  • stUSDhyy-B: Balanced vault strategy token
  • stUSDhyy-A: Aggressive vault strategy token

Each strategy token:

  • Automatically accrues yield from its specific vault strategy
  • Represents ownership in the strategy's performance
  • Can be used as collateral in compatible DeFi protocols
  • Has unique risk-reward characteristics

Integration with Hyperliquid

As a Hyperliquid-native stablecoin, USDhy enjoys several unique advantages:

  • Seamless trading experience with CEX-grade performance
  • Deep liquidity through direct DEX integration
  • Transparent on-chain position management
  • Reduced transaction costs and improved efficiency

Use Cases

USDhy and strategy tokens serve multiple purposes in the DeFi ecosystem:

  • Entry point for HYYY's strategy vaults
  • Yield generation through strategy-specific staking
  • Trading pairs on Hyperliquid
  • Collateral for future DeFi protocols
  • Settlement currency for cross-chain transactions

Risk Management

Our commitment to stability is reflected in our comprehensive risk management framework:

  • 24/7 AI-powered position monitoring
  • Multi-layered security protocols
  • Regular smart contract audits
  • Emergency shutdown procedures

Getting Started

Users can interact with USDhy through multiple pathways:

  1. Convert USDC to USDhy in the Gateway Vault
  2. Stake USDhy in strategy vaults to receive strategy tokens
  3. Trade strategy tokens on supported platforms
  4. Use strategy tokens as collateral in partner protocols

The combination of USDhy and strategy tokens forms the foundation of our vision for a more efficient, transparent, and sustainable DeFi ecosystem built on next-generation DEX infrastructure.