How It Works

A basis trade is at the core of the Harmonix startegies, enabling low-risk high yield generation. By balancing long and short positions, Harmonix neutralizes market direction, earning funding fees from perpetual orderbook exchanges while also generating additional yield by chanelling liquidity through lending, staking, borrowing, and looping assets across ecosystem protocols. This approach allows users to earn returns without exposure to price swings.

Example

• Long 1 HYPE in the spot market (delta = +1)

• Short 1 HYPE in perpetual futures (delta = -1)

• Total delta = 0

• + Funding Rate APR

Yield Sources

Funding Rates

One major source of yield comes from funding payments: periodic payments exchanged between long and short traders in perpetual futures markets to keep contract prices aligned with the spot market. Harmonix captures these payments automatically as part of its low-risk yield strategy.

Additional Yield source

Harmonix also deploys user assets to HyperEVM protocols, including lending, staking, borrowing, and looping. This allows users to earn additional yield from the ecosystem, fully automated alongside the basis trade strategy.

Points

Users earn Points from the protocol and the ecosystem by depositing or holding assets in Vaults, holding Harmonix yield-bearing tokens, and generating yield through ecosystem protocols. Points reflect participation and long-term alignment with Harmonix and designed to be converted into airdrops as the ecosystem grows.