Delta-Neutral Tokens (dnTokens)
Earn real, market‑neutral yield from perpetual funding payments on Hyperliquid.
Designed for efficiency and performance over the long term, these tokens automatically earn real yield from funding rates paid by leverage traders on Hyperliquid while limiting market exposure. Built for users, protocols and institutions.
How it works
A delta-neutral position is opened on HyperCore
The execution engine opens an optimized delta-neutral position e.g. spot leg holding Unit assets or yield bearing assets, and a matched perpetual short on Hyperliquid, so net delta ≈ 0 limiting market exposure. With each dnToken operating a single asset strategy e.g. dnHYPE and HYPE.
Architecture
Purpose‑built execution: The Hyperbeat execution stack dynamically hedges, monitors, and automates rebalancing to maintain neutralisty.
Long term, stablecoin yield: dnTokens prioritize funding yield on stables. Automating spot and perp based strategies, minimizing directional risk to generate cash‑denominated returns from funding payments.
Unit expansion: Uses Unit assets to broaden asset coverage, including spot‑only yield pathways where appropriate.
Native to Hyperliquid: dnTokens integrate directly with HyperCore for real‑time spot/perp execution and data feeds.
Sourced from Hyperliquid: APY net of all fees updates directly via the Hyperliquid API to reflect current funding conditions.
Fees aligned with users: 10% performance fee charged only on PnL and net of all execution costs (e.g. Hyperliquid trading fees).
Open Access: Open to all users, strategies previously available to the few, now available to all. No Min or Max deposit. Asset‑level TVL caps are in place to start, scaling dynamically over time.
Composable: Strategies are tokenised to plug into DeFi enabling lending use cases such as yield tokenisation and onchain leverage.
FAQs
What is delta‑neutral?
Balancing long spot and short perp (equal size) so net delta ≈ 0, isolating funding payment yield from from price movements.
What happens to the deposited assets?
They are deployed on HyperCore to run an automated delta‑neutral strategy, holding Unit/yield-bearing assets for the spot-leg and shorting the corresponding perpetual market on Hyperliquid to create a delta-netural position. Each dnToken runs a single strategy on one asset e.g. dnHYPE and HYPE.
Where does yield come from?
This strategy captures yield from perpetual funding payments, paid by long traders on Hyperliquid, yield bearing spot assets (when applicable) and any additional incentives.
How long do withdrawals take?
During the bootstrapping phase, withdrawals are processed in 1-3 days. As safeguards taper, withdrawals will be processed in real-time. A withdrawal closes both spot and perp legs and incurs HL trading, spread, and potential slippage costs. Safe unwinds depend on orderbook liquidity and volatility; aggressive exits can incur execution costs that eat into yield, hence the staged approach.
The vault mandate is to maximize yield for depositors. Users always maintain the right to withdraw their capital and have direct flow through to strategy deposits.
How are fees charged?
10% Performance fee, charged only on yield. If the strategy does not earn i.e. when funding is negative, fees are not charged. No hidden fees. Hyperbeat applies its referral code automatically for a trading‑fee discount and trading fee rebate.
What are the risks?
Market risk is managed through design, monitoring, and active rebalancing to maintain neutrality. However, unexpected events such as sudden volatility spikes, Hyperliquid downtimes, shallow market depth, latency issues, or sharp funding rate reversals can temporarily disrupt the balance between spot and perp positions, reducing or even negating expected yields. APY can swing more than diversified vaults that smooth returns with other yield sources. Funding spikes are short‑lived and compress with inflows; frequent switching compounds spread/fee drag, these tokens are designed for long term yield.
How is risk managed?
Through dynamic rebalancing, liquidation avoidance, and real‑time performance monitoring. Several mechanisms are maintained to preserve capital integrity such as a real-time execution engine for dynamic rebalancing, liquidation avoidance, real-time performance monitoring. Users always retain the right to withdraw; strategy flows are directly connected to vault deposits.
Risks
While delta‑neutral structures reduce market direction risk, they are not risk‑free.
Potential risk factors
Market & funding dynamics: Sudden volatility or funding reversals can dampen or negate expected yield; neutrality is maintained but returns vary.
Infrastructure dependency: If Hyperliquid experiences downtime or maintenance, execution and (temporarily) withdrawals may be affected.
Stablecoin issuer risk: Depeg/issuer events can impact deposits.
Execution frictions: Depth/latency/slippage, particularly on volatile/illiquid assets, can add costs.
Volatility spikes that momentarily unbalance spot/perp legs.
Exchange/infra events (e.g., Hyperliquid downtime), market depth limits, or latency.
Funding reversals or sharp changes that can reduce/negate expected yield.
Institutional delegation: Understand Agent permissions and avoid manual sub‑account actions.
Risk controls
Low‑leverage design; proactive rebalancing and liquidation avoidance
Real‑time monitoring and safety caps; always‑on withdrawal access with market‑aware safeguards.
Real‑time execution engine for fast, dynamic rebalancing.
Liquidation avoidance parameters, monitoring, proactive and reactive defenses.
24/7 performance & risk telemetry with active controls.
Disclosures
This page is for informational purposes only and does not constitute investment advice. Yields are variable and not guaranteed. Capital is at risk.
Last updated