Is 15% yield on @HyperliquidX scalable?
Let's find out.
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Ethena proved the basis trade scales well. It grows with short open interest (OI) on perp exchanges, typically 2-5x the spot's marketcap
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As crypto adoption rises, perp OI should keep climbing, making this trade highly scalable
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Just looking at USDe: nearing ~$15B market cap with growth accelerating
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@SHREDfi’s strategy goes beyond the plain basis trade, using minimal leverage to optimize “risk-adjusted” APRs
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To pull this off, we use spot leverage via DeFi money markets (like Aave v3 on ETH L1).
Scale is limited by money market supply caps and stablecoin borrow supply (& utilization)
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Turns out this scales quite well. One shred strategy (below) can handle ~$3B in TVL.
Our flexible infrastructure supports multiple strategies, pushing potential scale up to $5B-$10B
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As Perps OI and Money Markets' TVL grow with on-chain capital, we can scale even larger alongside them
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