BFY
BFY (BTC Funding Yield): Bitcoin-Native Delta-Neutral Yield Strategy
BFY is a core HyperBond product within HYPERMAX, designed to deliver delta-neutral yield by capturing funding rate premiums from Hyperliquid’s BTC perpetual markets. It offers BTC holders and DeFi participants a way to earn passive, trustless yield without price exposure.
BFY uses uBTC by HyperUnit, which eanbles spot trading on Hyperliquid by porting native Bitcoin liquidity into the Hyperliquid ecosystem—allowing BFY to execute its strategy fully onchain.
While BFY aims for stable returns, funding rate volatility can affect performance. Positive funding drives yield; negative regimes may lead to temporary losses.
We note that BFY may be eligible for Unit airdrop, in which case 100% of the proceeds will be distributed to BFY holders, pending distribution method by team.
Historical Performance
Period
34 days
ROI
0.92%
Max Draw Down
-0.37%
Sharpe Ratio
4.26
Annualized ROI
10.33%
Value
USD
**Note that these results are achieved even though BTC isn't used as marging yet on Hyperliquid. We believe this to change in the future, thereby boosting PnL.
How BFY Works
BFY uses an automated delta-neutral strategy tailored to Bitcoin markets:
Long uBTC (Spot): The SmartFund allocates 60-70% of equity to acquires uBTC on Hyperliquid’s spot market. uBTC is issued and redeemed through HyperUnit’s decentralized protocol.
Short BTC (Perpetual): A matching short position is opened on BTC perpetuals to neutralize market exposure.
Yield Capture: Positive funding rates on BTC perps generate yield on the short leg.
Automation & Risk Management: SmartFund infrastructure rebalances positions automatically to maintain delta neutrality. Note that we adjust the total market exposure in market conditions to optimize the performance.
Liquidity Access: BFY tokens are tradable 24/7 on HYPERMAX’s CLMM, providing frictionless liquidity without redemption delays.
What BFY Enables
BTC-Native Passive Yield Monetize BTC holdings by capturing funding premiums without taking price risk.
Trustless Automation & Transparency All activity is onchain, automated by SmartFund contracts and fully auditable.
Capital Efficiency via Rehypothecation Use BFY as collateral in the HYPERMAX Lending Market to:
Borrow xUSD or other assets
Gain exposure to other DeFi opportunities
Retain base layer yield while accessing liquidity
Seamless Entry & Exit BFY is tradable anytime on CLMM, enabling dynamic treasury or portfolio management.
Risk Considerations
Funding Rate Volatility Yields are variable and may turn negative during certain market conditions.
Liquidity Risk Larger trades may experience slippage based on CLMM depth.
Wrapped Asset & Protocol Risk While uBTC is fully collateralized and audited, wrapped assets carry underlying protocol risk tied to HyperUnit.
Smart Contract Risk Built on audited infrastructure, but standard DeFi risks still apply.
How to Access BFY
Trade Buy or sell BFY tokens directly on HYPERMAX’s Concentrated Liquidity AMM (CLMM).
Leverage Use BFY as collateral in the Lending Market to unlock capital for trading, farming, or other DeFi strategies.
HyperUnit may incentivze users of uAssets in the future. In case such event happens, the vault belongs to the users.
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