Yield Engine

Solomon generates yield from funding rates via a basis trade with t-bill yields in the works

Basis Trade

Solomon utilizes CEXes (eg. Binance) to create its basis trades. It places a neutral spot-long / perp-short across major tokens (eg. BTC, SOL, ETH) to capture perp funding and futures/spot basis rates. The auto-compounding structure ensures yield is efficiently reinvested.

This is then distributed as yield to stakers (sUSDv) and permissioned USDv holders (YaaS).

Yield Flow

  1. Approved users mint USDv by sending equivalent assets in exchange for the minted USDv.

  2. These assets are then used to place positions via custody partners.

  3. The yield is then distributed to the staking contract regularly.

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