Bitcoin holders have always wanted the same thing: access to liquidity without being forced to sell the asset they want to keep.

That demand is not new. What has been missing is a borrowing product that feels mature enough for real capital.

Most onchain credit today still depends on floating-rate debt, which turns borrowing into an actively managed position. That works for traders and market makers, but it creates extra operational costs for borrowers who simply want predictable capital access against their Bitcoin. For treasury teams, institutions, or long-term BTC holders, the problem is not only rate volatility. It is the ongoing need to monitor, refinance, and manage a debt position that should be simple, fixed, and predictable.

This is why fixed-rate borrowing matters.

Babylon’s Trustless Bitcoin Vaults and Aave V4 make non-custodial Bitcoin-backed borrowing possible without launching a new chain, wrapping BTC, or rebuilding lending from scratch.

Babylon provides the Bitcoin-native collateral layer. Aave V4 provides the liquidity, accounting, and risk engine. Aegis adds the rate structuring layer, turning variable-rate borrowing into a fixed-rate user experience.

From the borrower’s perspective, the product is simple: deposit BTC through Babylon, borrow on Aave V4, and lock the borrowing cost through Aegis.

The infrastructure is complex under the hood, but the user experience is clear: Bitcoin-backed borrowing with fixed-rate certainty.

Why the existing borrowing stack is not enough

There is no shortage of demand for Bitcoin-backed liquidity. The shortage is in product quality.

If a user wants to borrow against BTC today, they can usually find a way to do it. But the tradeoffs are often unattractive:

• sell the BTC and lose the upside

• use a centralized lender and accept custody risk

• bridge or wrap the collateral into a weaker trust model

• borrow at floating rates and actively manage the risk yourself

Each of these approaches solves one problem by creating another.

For sophisticated users, floating-rate debt can be tolerated. For a broader borrower base, it is often a reason not to borrow at all. A treasurer, founder, fund, or long-term holder may be willing to accept BTC mark-to-market volatility because that is native to the asset. They may be far less willing to accept open-ended uncertainty in interest cost on top of that.

The goal is not merely to help BTC holders borrow. It is to make Bitcoin-backed borrowing feel more predictable, more legible, and more aligned with how serious borrowers think about liabilities.

Layer 1 — The collateral: Trustless Bitcoin Vaults

To understand why this product is interesting, it helps to start with the collateral layer.

Babylon's Trustless Bitcoin Vaults architecture is not just "BTC on Ethereum." It is a system for using Bitcoin as collateral while preserving a trust-minimized relationship to the underlying asset.

At the base layer, a depositor locks BTC into a Taproot script on Bitcoin, creating a BTC vault. That vault is not a generic ERC-20 asset and it is not a freely fungible unit. It is an indivisible, non-fungible collateral object tied to actual Bitcoin UTXOs on the Bitcoin network.

From there, the vault is onboarded through the BTC Vault Manager on Ethereum. That contract coordinates the onboarding process, verifies the relevant Bitcoin transaction data, tracks approved application integrations, and ultimately oversees the redemption flow when the vault is ready to be claimed.

This process is not purely onchain. It depends on a system of vault keepers, which are critical to the trust and redemption model.

There are three main keeper roles:

• Vault provider — chosen per vault; can claim on the depositor's behalf and challenge malicious claims.

• Universal challengers — defined at the protocol level as a fallback challenge set.

• Application-elected vault keepers — chosen per application; in the Aave V4 context these include the actors that support liquidation and redemption routing

Before a vault becomes active, the relevant parties complete an offchain ceremony. They prepare the transaction graph, pre-sign the required redemption paths, and generate the cryptographic material required for the challenge mechanism. Once the Bitcoin transaction is confirmed and the required inclusion proof is submitted, the vault becomes active and passes into the integrated application layer.

That matters because the system is not pretending Bitcoin suddenly became a native Ethereum asset. Instead, it builds a controlled bridge between Bitcoin-native collateral and Ethereum-based application logic.

This is the first important feature of the stack: the collateral model is designed around real Bitcoin constraints rather than hand-waving them away.

Layer 2 — The translation: making Aave V4 understand BTC vaults

Once a BTC vault becomes active, it can be handed to an integrated application. In this case, that application is Aave V4.

Aave V4 is a natural liquidity layer for this use case. It brings deep reserves, a modern hub-and-spoke architecture, and a risk engine designed for lending markets at scale. But Aave does not natively understand indivisible Bitcoin vaults as collateral.

That mismatch creates the core design challenge.

Aave expects ERC-20 collateral that can be accounted for, transferred, and partially liquidated. BTC vaults are none of those things. They are indivisible units tied to Bitcoin UTXOs. They cannot be split, merged, or treated like standard fungible collateral.

The Aave V4 integration solves that by minting vaultBTC, a synthetic ERC-20 representation of each onboarded BTC vault, on a one-to-one basis. vaultBTC acts as a translation layer between the Bitcoin vault system and Aave's lending engine.

This is an elegant design, but it comes with strict constraints.

vaultBTC cannot behave like a freely tradable collateral token without breaking the relationship between the Aave position and the underlying redeemable BTC vault on Bitcoin. In other words, it is not meant to become just another composable token floating through DeFi. It is a tightly controlled accounting bridge that lets Aave reason about BTC-backed collateral positions without pretending the underlying collateral has the same properties as ERC-20 assets.

That design choice leads to two especially important consequences.

1. Liquidation respects indivisibility

In a standard DeFi lending market, partial liquidation can seize a precise fraction of collateral. With BTC vaults, that is not always possible, because each vault is a whole unit.

The integration handles this by allowing a borrower position to contain multiple ordered BTC vaults. During liquidation, the system walks the borrower's ordered list and seizes consecutive vaults until the required liquidation amount is covered.

That can create over-seizure. If the next vault in line is larger than the exact amount needed, the system cannot split it cleanly. Instead, the architecture includes fairness mechanics that use the excess value for additional debt repayment or return value to the borrower through a fairness payment in WBTC.

This is not a cosmetic implementation detail. It is one of the core reasons the product is credible. The system acknowledges Bitcoin's indivisible collateral structure and builds liquidation logic around it instead of pretending it does not matter.

2. Two liquidation paths, not one

Not every liquidator can redeem a seized vault directly on Bitcoin.

• In the claiming set (an application-elected keeper or arbitrageur with the right infrastructure): they take the seized vault through the Bitcoin-side redemption path after the challenge period.

• Permissionless, outside the claiming set: the integration uses a Vault Swap. The liquidator receives an immediate WBTC payout from the Aave-side liquidity layer, while the seized vault is escrowed for a qualified arbitrageur to purchase and redeem later.

This broadens who can liquidate — keeping the market permissionless — without assuming every participant can operate keeper infrastructure across both chains.

Layer 3 — The rate: where Aegis fits

Babylon and the Aave V4 integration make Bitcoin-backed borrowing possible.

Aegis is what makes it usable as a fixed-rate credit product.

Aegis inserts a fixed-rate credit layer on top. The borrower selects amount and term; Aegis returns a fixed quote; on approval of the required delegation, the position originates against the underlying Aave infrastructure while Aegis handles the rate-transformation logic and downstream protection.

What will this loan cost me?

Aegis answers that question by inserting a fixed-rate credit layer on top of the Aave borrow flow.

The borrower chooses the desired loan amount and term. Aegis returns a fixed-rate quote. Once the borrower approves the required delegation and confirms the transaction, the position is originated against the underlying Aave infrastructure while Aegis handles the rate transformation logic and downstream protection mechanics.

From the user's perspective, the experience is straightforward:

• receive a fixed quote at origination

• borrow against vaultBTC-backed collateral

• get proceeds immediately

• know the borrowing cost in advance

From the system's perspective, the work is much harder:

• source the liquidity through Aave

• manage the mismatch between floating-rate debt and fixed-rate borrower promises

• track the position through on-chain logic

• protect against adverse rate moves over the term of the loan

This is where Aegis' rate engine, position logic, and hedging infrastructure matter.

The important point is not that the product eliminates complexity. It is that it moves complexity away from the borrower and into the protocol layer, where it can be managed systematically.

That is what good credit packaging does.

What the borrower experience should feel like

The user experience here should feel much closer to a modern loan product than a DeFi strategy.

The borrower should not have to assemble the product manually by borrowing variable, thinking about duration, monitoring rates constantly, and trying to hedge the mismatch themselves.

Instead, the ideal experience is:

1. Deposit BTC through the Babylon trustless vault flow

2. Select a borrow asset, amount, and duration

3. Receive a fixed-rate quote from Aegis

4. Execute once and receive proceeds

That is a materially better product than "borrow variable and manage it yourself."

Why this composition matters

No single protocol tries to do everything. Babylon unlocks the collateral, Aave supplies the liquidity engine, and Aegis turns those primitives into a borrowing product that works outside a narrow class of active DeFi users. That's how new financial primitives become real markets — different layers becoming good enough to compose into something users actually want.

What comes next

Aegis is preparing to launch fixed-rate borrowing against vaultBTC collateral on Aave V4 on 01.07.2026.

If you are interested in becoming one of the first users or clients, please reach out to

ermin@aegis.im or aurelien@aegis.im

Final thought

The strongest version of this story is not "Bitcoin holders can now borrow." That is too narrow, and it undersells what is being built.

The stronger claim is this:

Bitcoin holders can access non-custodial onchain credit without selling their BTC, without relying on a simplistic bridge-and-wrap model, and without taking floating-rate uncertainty directly at the user layer. That is a meaningful product improvement.

It makes Bitcoin-backed credit more predictable, DeFi borrowing more legible and the overall stack more useful to serious borrowers.

Babylon is helping make Bitcoin usable as programmable collateral.

Aave V4 provides the lending engine that gives that collateral access to liquidity.

Aegis is building the fixed-rate layer that turns those primitives into a cleaner borrowing product.

Together, that creates something compelling:

Bitcoin-backed borrowing with fixed-rate certainty, built for the next phase of onchain credit markets.

In June 2026 Aegis published the YUSD Reserve Strategy Mandate. The mandate sets how YUSD reserves allocate between the BTC funding strategy and tokenized treasury bills. The allocation follows one number, the Funding Rate Premium. This article defines the Funding Rate Premium, presents the funding rate record that motivates the rule and walks through how the mandate applies it.

The definition

Funding Rate Premium (FRP) = 30-day BTC funding APR − 4-week treasury bill yield.

The funding APR is the weighted average of OKX and Bybit COIN-M funding rates over the trailing 30 days. The treasury bill yield is the 1-month APY on Centrifuge JSTRY.

FRP is the excess yield the BTC funding strategy earns above treasury bills. A positive FRP means the funding strategy pays more than treasury bills. A negative FRP means treasury bills pay more. FRP is calculated weekly and the series is published with the mandate.

Where the funding carry comes from

A perpetual future has no expiry date. Exchanges keep the perpetual price near the spot price through funding payments that pass between longs and shorts at fixed intervals. When the perpetual trades above the spot index, the funding rate is positive and longs pay shorts. When the perpetual trades below the spot index, the funding rate is negative and shorts pay longs.

Aegis holds the short side. The short BTC perpetual position hedges the BTC collateral, and on positive funding days the position collects the funding payment. That payment is the funding rate carry, and it accrues to sYUSD holders as a rising sYUSD to YUSD exchange rate. On negative funding days the position pays funding, the Aegis insurance fund covers the outflow and sYUSD holds at 0% for that day.

The funding rate record

The funding rate is variable. Aegis published the BTC perpetual funding rate distribution recorded from January 1, 2024 through May 17, 2026, 868 daily observations of the realized BTC perpetual funding rate averaged across the Binance, Bybit and OKX feeds.

Quarterly mean annualized funding rate across the dataset:

• Q1 2024: 23.70%
• Q2 2024: 7.78%
• Q3 2024: 3.63%
• Q4 2024: 13.70%
• Q1 2025: 4.53%
• Q2 2025: 3.13%
• Q3 2025: 6.80%
• Q4 2025: 2.92%
• Q1 2026: 1.29%
• Q2 2026 through May 17: -0.85%

The mean across all 868 observations is 7.05% APY and the median is 4.89% APY. Q1 2024 holds the highest quarterly mean. Q2 2026 holds the only negative quarterly mean in the dataset.

The dataset contains 33 negative funding regimes. 12 regimes lasted 1 day and 18 regimes lasted 2 to 5 days. The longest regime ran 15 days, from April 11 to April 25, 2026. April 2026 recorded 20 negative funding days, the highest monthly count in the dataset.

Why the allocation follows a rule

A reserve strategy that earns only the funding carry earns close to 0% in a quarter like Q2 2026. The 4-week treasury bill paid 3.5% over the same period. The mandate exists for this case. When funding pays well above treasury bills, reserves run the funding strategy and sYUSD holders earn the carry. When funding pays below treasury bills for a sustained period, reserves move to treasury bills and sYUSD yield holds near the treasury bill yield net of management fees.

The BTC funding strategy carries exchange and operational risk. Treasury bills carry duration risk capped at 180 days. FRP measures whether the funding strategy is paying enough to take its risk.

The allocation bands

FRP above 250bps: 100% funding strategy, 0% treasury bills. The mandate labels this band Funding Dominant.

FRP below -250bps: 0% funding strategy, 100% treasury bills. The mandate labels this band Treasuries Dominant.

FRP is calculated weekly. The 250bps threshold requires the funding strategy to pay at least 2.5% APY above treasury bills before reserves take its exchange and operational risk. The full mandate sets the allocation at each band and publishes the back-tested FRP series.

The 14-day hold

A band change is acted on only after FRP holds the new band for 14 consecutive days. This prevents a reallocation on a transient funding spike, and it prevents one on a transient funding drop.

The dataset supports the threshold. 30 of the 33 negative funding regimes on record lasted 5 days or fewer. A 14-day hold keeps reserves in place through the regimes that revert within days and acts on the regimes that persist.

Execution controls

A reallocation moves positions in tranches. Spot long and perpetual short positions close as paired legs in the same tranche, so no naked exposure exists between tranches.

The slippage and cost budget is 20bps per tranche. Execution pauses if a tranche breaches the budget by 1.5x and the Risk Committee reviews before resuming.

Governance

Adding or removing a treasury instrument issuer requires Board approval, a diligence pack and 7-day notice. Any Risk Committee member can halt a rebalance immediately, with 24 hours to ratify the halt or resume.

What a YUSD holder should understand

The FRP series tells a our holders where reserves sit and where the yield comes from in the current band. In the Funding Dominant band the yield is the BTC funding rate carry. In the Treasuries Dominant band the yield is the treasury bill yield net of management fees. In both bands the yield accrues as a rising sYUSD to YUSD exchange rate and direct native claim for YUSD holders.

Current sYUSD 7d APY: 3.7%.
Current FRP: 0.15%

Access YUSD: https://app.aegis.im
Stake YUSD to receive sYUSD: https://app.aegis.im/stake

Check the current collateral allocation: https://app.aegis.im/transparency
Proof of reserves: https://aegis.accountable.capital/

Every protocol should be able to answer what happens when something goes wrong.

Recent exploits share a common failure mode. Protocols rely on offchain infrastructure to authorize critical operations, creating a single point of failure. When that infrastructure is compromised, the contracts execute exactly as written, including instructions that damage users.

The gap between when an exploit begins and when it is contained is where losses accumulate. In several recent incidents, that gap was measured in hours.

Mint Security: No Uncollateralized Path

The mint contract enforces collateral requirements before any new supply is created.

Only onchain whitelisted addresses that have passed KYC/KYB are permitted to mint YUSD/ jUSD. Once a mint request is submitted, collateral verification runs in 2 steps: first offchain, then onchain using oracle pricing to confirm both the amount and current value of the collateral. New YUSD/ jUSD is only created after both checks pass.

When collateral in USDT or USDC is deposited to mint YUSD, it is transferred to institutional custodians first, then converted to BTC. There is no function in the contract that allows supply to be created without a corresponding collateral deposit.

When USDC is deposited to mint jUSD, it is used to acquire JLP, which becomes the primary collateral backing jUSD. Hedging positions are opened against the underlying JLP composition to neutralize price exposure.

There is no single point in the protocol that provides unlimited opportunity to drain assets at once.

Custody: Collateral Never Sits on an Exchange

Aegis does not store user funds on exchanges. All assets are held with institutional custodians, Copper and Fireblocks, and hedging operations are executed through off-exchange settlement.

When a position needs to be managed, assets are temporarily allocated for execution and returned to custodian vaults post-trade. Collateral is never transferred directly onto a centralized exchange. If an exchange were to become insolvent, face a security breach or go offline, the underlying collateral remains in custody and is unaffected.

Both custodians are audited to institutional custody standards.

Operational Security: Multisig With Hardware Controls

All operational actions are controlled by a 3-of-5 multisig. Signers are core team members, with a maximum of 2 in the same physical location. All signers use hardware wallets and follow an internal signing procedure with strict restrictions on where signing requests can be sent or opened.

An automated monitoring process tracks significant events, including large mints and unexpected transfers.

Response and Containment

Protocol monitoring runs continuously across collateral balances, mint activity and hedge positions. When an anomaly is detected, the response is coordinated through the full multisig threshold.

Mint and redemption activity can be paused independently. In a scenario requiring immediate action, new supply creation can be frozen while redemptions remain open, preserving users' ability to exit.

The Insurance Fund

The insurance fund absorbs losses that arise from negative funding rate periods, execution slippage and temporary rebalancing inefficiencies. It operates as a reserve between strategy performance and user positions, ensuring that short-term market conditions do not affect protocol stability.

Its balance and usage are tracked in real time on the Accountable dashboard.

Additional Cover Through Nexus Mutual

Users can purchase cover for YUSD positions through Nexus Mutual. This provides additional protection on top of the existing insurance fund and delta-neutral hedging positions.

Single Protocol Cover protects against smart contract exploits, oracle failure, oracle manipulation, liquidation failure and governance takeovers. Cover is valid across all EVM-compatible chains where YUSD is deployed.

Insure your YUSD at Nexus Mutual.

Transparency: Verifiable in Real Time

Proof of reserves is published continuously through the Accountable dashboard at aegis.accountable.capital. Collateral balances, hedge positions, market neutrality and solvency ratios are independently verifiable at any time, with data sourced directly from custodians and exchanges through cryptographic verification.

When collateral cannot be independently verified, uncertainty spreads fast. Several 2026 incidents accelerated from exploit to depeg within hours precisely because users had no way to assess protocol solvency in real time.

What Audits Do Not Cover

Audits verify that contracts execute as written. They do not cover compromised keys, manipulated offchain inputs or operational failures that feed valid instructions to correct contracts.

When an operational component is compromised in the Aegis protocol, the scope of potential damage is bounded because collateral is held in custody by Copper and Fireblocks, new supply requires verified collateral deposits confirmed by oracle pricing, and all operational actions require 3-of-5 multisig consensus from geographically distributed signers using hardware wallets.

That is the architecture. The PoR dashboard is where you verify it.

Website: aegis.im

App: app.aegis.im

Proof of Reserves: aegis.accountable.capital

X: x.com/aegis_im

This shift reflects a broader focus on working with platforms that custody or manage stablecoin balances at scale and aligning Aegis assets with real usage across trading, payments, lending and treasury management.

1. YaaS Launch

Yield-as-a-Service enables platforms to integrate yield directly into stablecoin balances using YUSD and jUSD. Partners integrate once and gain access to revenue generated by the assets. Users hold YUSD or jUSD like any other dollar-denominated stablecoin, and yield accrues automatically to their balances.

Partners configure how yield is allocated between users and the platform. Aegis operates execution, hedging, custody coordination, monitoring and risk management. This allows partners to offer yield-bearing balances without building or maintaining strategy infrastructure internally.

YaaS is designed for wallets, exchanges, card programs, lending markets and institutional platforms that manage user balances.

Aegis

@aegis_im

x.com/i/article/2027…

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5:00 PM • Feb 27, 2026

2. Yield Distribution Milestone

Since Aegis went live in April 2025, the protocol has distributed over $1M in yield to YUSD and sYUSD holders. Weekly distributions have remained fully verifiable through real-time collateral and insurance fund reporting, with no losses passed to users.

3. jUSD Proof of Reserves

jUSD is now live on the Accountable Proof of Reserves dashboard. Users can switch between YUSD and jUSD to view real-time solvency data, including reserves, collateral ratios and hedging status pulled directly from source data.

Outlook

Aegis is continuing to expand the distribution of YUSD and jUSD across a broader network of partners. Current efforts are focused on additional integrations through Yield-as-a-Service, enabling balance-based yield across institutional and consumer platforms.

As distribution increases, Aegis is positioning its assets as a core component of digital dollar infrastructure, supporting products that require yield, transparency and institutional execution without introducing operational complexity.

Stablecoins have become one of the most widely used financial instruments. They are used for trading, payments, savings, lending and collateral across nearly every product category. Despite this adoption, the economic model for most stablecoins remains highly centralized. Large issuers such as Circle and Tether capture the full revenue generated by the underlying backing, while products that own distribution, retain users, and build demand receive none of it.

Protocols handle user acquisition, compliance overhead, liquidity management and product development, yet the economic upside from stablecoin balances accrues entirely to the issuer. The yield generated by treasuries, credit, or other backing assets does not flow back to the applications where users actually hold and use their digital dollars. That revenue could otherwise support development, liquidity incentives, TAM expansion, or reduced user fees.

The impact of this model is visible across multiple product categories:

• Traders who use centralized stablecoins as margin collateral on exchanges earn no yield on their positions. Fees and negative funding rates reduce the economic viability of holding leveraged positions for a prolonged period and leads to them being closed earlier than intended. As a result, open interest declines, spreads widen and executing trades at meaningful size becomes difficult.

• On prediction markets, stablecoin balances can remain idle for extended periods of time. Users do not earn any yield while their capital remains locked in holding shares. For longer dated markets, this represents a significant opportunity cost.

• In consumer financial products, users who keep their savings in neobanks are exposed to inflation. Stablecoin balances held for spending or transfers do not preserve purchasing power over time. This reduces long-term retention and forces the product's feature set being limited to spending use cases.

Aegis aims to address these inefficiencies.

YaaS and Partner Integration

Aegis is developing Yield-as-a-Service, which enables protocols to integrate yield directly into stablecoin user balances. Instead of holding idle dollars, users hold yield-bearing assets issued by Aegis. Protocols can benefit directly by retaining a configurable share of the generated yield.

YaaS is implemented through two assets: YUSD and jUSD. Both are dollar-denominated stablecoins, that accrue yield through strategies managed by Aegis. Integration involves a simple replacement of existing stablecoin balances with YUSD or jUSD. No staking, lockups, or additional user actions are required.

For protocols with broad distribution, yield generated from the underlying assets can become the main revenue source. Revenue grows linearly with assets held by users. This aligns protocol incentives with retention and long-term capital allocation.

• Neobanks can integrate YaaS by routing idle user deposits into YUSD or jUSD. Users continue to interact with their balances through existing interfaces. Yield accrues in the background. When users initiate payments or transfers, YUSD/jUSD are redeemed back into standard settlement assets. This enables neobanks to provide a "savings" feature, while introducing a completely new revenue stream.

• Lending markets can integrate sYUSD and sjUSD as collateral assets. Yield-bearing collateral increases borrow demand. Looping strategies become possible without introducing new primitives. Protocol revenue increases through higher utilization rates and fee generation.

• Exchanges can support YUSD and jUSD as margin collateral. Yield continues to accrue while the assets are used for leveraged positions. Yield can offset funding costs and trading fees. This increases the economic viability of holding positions for longer durations and supports sticky open interest.

• Protocol treasuries can allocate idle capital into YUSD or jUSD. Treasury balances generate yield while remaining liquid. This extends operational runway without introducing exposure to volatile assets.

• Wallet providers can integrate YaaS by offering yield on passive balances. Users deposit stablecoins directly from the wallet interface. Yield accrues without additional actions. Wallets benefit from the additional revenue, while improving user retention.

The Aegis Asset Model and Execution

The foundation of YaaS are the yield generation strategies run by Aegis.

• YUSD is a BTC-backed digital dollar. BTC spot positions are hedged using BTC-margined perpetual futures. The strategy is a classic basis trade, yield is generated from BTC perpetual funding payments. Hedging is executed using BTC-M contracts, avoiding reliance on fiat-backed stablecoins for margin.

• jUSD is a JLP-backed digital dollar. JLP represents a basket of BTC, ETH, SOL and USDC held within the Jupiter Perps liquidity pool. Trading fees and liquidation proceeds accrue to JLP as yield. Aegis hedges the volatile assets within JLP to remove price exposure while retaining revenue from trading activity and funding.

  

Custody and execution are handled through institutional custody and OES setups. Collateral is held with regulated custodians such as Copper, with assets remaining segregated and verifiable at all times.

Hedging is executed through off-exchange settlement using ClearLoop, which allows positions to be opened and managed without pre-funding assets directly to exchanges. Settlement and margin rebalancing are coordinated through controlled execution between the custodian and CEX's. This setup limits direct counterparty exposure, reduces counterparty risk and supports continuous strategy operation under defined risk controls.

Aegis operates an insurance fund, funded by a portion of protocol yield. The IF absorbs any potential losses arising from negative funding rates, execution slippage or short-term hedging deviations. This protects user balances during volatile periods.

All strategies are monitored through a real-time proof of reserves by Accountable. Supply, reserves, hedging positions and insurance fund balances are visible to users. This enables independent solvency verification.

Running these strategies requires significant operational investment. Execution infrastructure, custody setup, risk monitoring, audits and dedicated teams are required to maintain these strategies at scale. Replicating this setup independently is complex and capital intensive.

YaaS allows protocols to avoid these costs entirely. Instead of building and operating yield strategies internally, protocols integrate YUSD or jUSD. Aegis operates execution, hedging, monitoring and risk management. Protocols focus on distribution and user experience while benefiting from a new revenue mechanism.

Stablecoins as a Scalable Revenue Source

Stablecoins continue to grow because they scale efficiently as financial products. Yield generated by backing assets compounds as total value held increases. Protocols that give up this revenue to centralized issuers reduce their ability to grow and reinvest in product development and growth. Yield-as-a-Service allows protocols to capture this value without increasing user fees or building complex infrastructure from scratch.

Aegis is positioned to support this transition. YaaS enables protocols to increase retention, generate sustainable revenue and offer more competitive financial products using existing stablecoin TVL.

Protocols interested in learning more about Yield-as-a-Service can visit:
https://aegis.im/yield-as-a-service

Disclaimer: This article is provided for informational and educational purposes only. It does not constitute investment advice, financial advice, legal advice or a recommendation to buy, sell or hold any asset or engage in any specific strategy. Nothing in this article should be relied upon as the basis for making investment or business decisions.

Aegis adjusted its collateral selection in response to prolonged periods of weak basis returns. The objective was to introduce a yield-bearing collateral that can offset periods of negative funding rates while remaining positioned to capture upside once they become positive. This required moving beyond strategies that depend solely on BTC spot and perpetual spreads and toward assets with integrated yield.

Initial exploration focused on BTC wrapped assets and LSTs as potential additions to the YUSD collateral set. These assets did not meet execution requirements at scale. Liquidity across derivatives markets was insufficient to support sustained hedging and rebalancing. Limited depth constrained the ability to maintain delta neutrality under changing market conditions. As a result, these assets did not meet our strict standards and were not suitable to be added into our strategies.

The focus then shifted toward issuing a new stablecoin backed by JLP. JLP is the liquidity provider token for Jupiter Perps and represents a basket of BTC, ETH, SOL and USDC. All trader positions on the platform settle against JLP. Trading fees and liquidation proceeds accrue directly to the pool and increase the value of JLP over time. This creates a yield source derived from trading activity, which removes dependencies on funding rates being positive.

Learn more about JLP.

Holding JLP introduces exposure to the underlying prices of BTC, ETH and SOL. Changes in these asset prices directly affect JLP price. The yield profile of JLP is therefore paired with directional price risk. Aegis addresses this risk by maintaining offsetting derivative short positions against the non stablecoin components of JLP. These hedges are sized and adjusted based on real time JLP composition and Jupiter Perps trader positioning. The objective is to remove price exposure while retaining the yield generated by trading activity of the platform.

Within the Solana ecosystem, several teams operate JLP hedging strategies. Adoption and TAM remain constrained by current DeFi usage on Solana. Ethereum is home to substantially higher TVL and deeper liquidity across lending and yield derivatives markets. At the time of design, no JLP hedging strategy was accessible through EVM based issuance. This presented a clear opportunity to extend the strategy to Ethereum users.

Supporting this expansion required designing a new model and asset flow from the ground up. Users mint jUSD on Ethereum using USDC. The USDC is transferred through a controlled cross-chain path to Solana, where the protocol acquires JLP and executes the hedged strategy. Hedging, rebalancing and monitoring are handled continuously by the protocol. Users hold jUSD on Ethereum while strategy execution occurs on Solana.

This design allows EVM users to access the JLP hedging strategy while benefiting from Ethereum's deep liquidity and ecosystem. Low borrowing rates, liquidity depth and protocol integrations on Ethereum support broader deployment of jUSD and sjUSD. Strategy execution remains settled on Solana, while issuance and distribution occur on EVM.

jUSD and sjUSD extend the Aegis yield-bearing stablecoin framework beyond BTC funding driven strategies. Yield generated through the JLP hedging strategy is distributed to sjUSD holders through the staking mechanism. Upcoming integrations across DeFi will allow users to deploy jUSD and sjUSD as collateral, provide liquidity and trade the underlying sjUSD yield.

Aegis continues to expand its approach to yield bearing stablecoins through new collateral types, transparent execution and verifiable risk management.

jUSD Launch

jUSD is now live as a new digital dollar issued by Aegis. The asset is built around a delta-neutral strategy backed by JLP and designed to generate yield from real trading activity while maintaining controlled exposure. jUSD brings a tokenized JLP based strategy to Ethereum, expanding access to this collateral and yield source to the EVM ecosystem.

The release of jUSD represents a major product expansion for Aegis and introduces a new strategy alongside YUSD and sYUSD.

Aegis

@aegis_im

1/ Introducing: jUSD.

An institutional-grade stablecoin designed to deliver reliable returns across all market conditions.

jUSD is built to earn consistent yield through a delta-neutral design, backed by JLP and hedged via derivatives.

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Yield Vault With Accountable

Aegis has continued to expand its transparency framework through the Yield Vault integration with Accountable. The vault combines Aegis strategies with Accountable’s verification infrastructure, allowing users to observe reserves, liabilities and hedge positioning using independently derived data.

This integration reinforces the protocol’s approach to transparency by pairing execution and yield generation with verifiable reporting sourced directly from custodians and exchange accounts.

Aegis

@aegis_im

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2:22 PM • Jan 2, 2026

sYUSD Listed on Stablewatch

sYUSD is now listed on Stablewatch. Users can track metrics such as TVL, APY and YPO through the platform. This listing improves visibility into sYUSD performance and other metrics across the ecosystem.

Learn more: https://www.stablewatch.io/analytics/assets/YUSD-Aegis

FailSafe jUSD Audit

All jUSD smart contracts have been independently audited by FailSafe. The audit reviewed the full jUSD contract suite and confirmed the contracts meet expected security and correctness standards. Capital protection remains a core focus as jUSD continues to scale.

The full audit report is publicly available: https://getfailsafe.com/aegis-jusd-smart-contract-audit

Portals Integration

Aegis has integrated with Portals to simplify execution of complex strategies directly within the Aegis app. As an initial release, users can acquire PT sYUSD through a single flow without leaving the interface.

The integration abstracts routing, approvals and sequencing into one transaction, reducing friction while preserving the same execution logic and risk controls used across Aegis strategies. Additional strategies and integrations through Portals will be added over time.

Looking Ahead

jUSD and sjUSD are the current focus as Aegis continues to expand product coverage and distribution. Upcoming work includes additional integrations across established protocols, new liquidity deployments and further improvements to transparency and execution.

More updates will follow as these integrations go live.

The core idea behind jUSD is to separate yield generation from market conditions. Instead of holding spot assets or taking speculative positions, the protocol earns revenue produced by trader activity on Jupiter and removes price risk through hedging via perpetuals. This allows jUSD to function as a stable, dollar pegged asset with built-in yield, even during periods of low funding rates or choppy markets.

Why JLP?

JLP is a liquidity provider token that represents an ownership share in a pool used to supply liquidity for trading on Jupiter Perps; it consists of SOL, ETH, BTC and USDC.
JLP's yield accrual comes from several sources: trading fees paid by market participants, funding rate payments and liquidation proceeds generated when leveraged positions are forced-closed.

JLP’s value fluctuates based on trader profitability and the price of underlying volatile assets. JLP captures meaningful fee revenue during periods of high market volatility and trading activity. This makes JLP an efficient yield-generating collateral base that largely consists of blue-chip assets.

jUSD uses JLP as collateral because JLP generates yield from trading activity. Price exposure from the assets inside JLP is neutralized through derivative hedging so yield is earned while directional risk is removed.

Tokenizing the Strategy

The central design objective of jUSD is to isolate the revenue component of JLP while removing directional risk. This is achieved by pairing long spot JLP exposure with short perpetual positions that mirror the JLP asset composition.

As the composition of JLP changes over time due to trading activity, the system dynamically adjusts hedge sizing and proportions. The result is a delta-neutral position where gains and losses from price movements are offset, while revenue continues to accrue.

jUSD differs from stablecoins collateralized by idle assets. By using JLP as collateral, it earns yield from trading activity on Jupiter Perps even during periods of low or negative funding rates.

Asset Flow and System Architecture

The operational flow of jUSD utilizes Ethereum, Solana and the perpetual platforms used for hedging. Each step is designed to separate custody, hedge execution and yield distribution, while maintaining transparency.

The asset flow is as follows:

• A whitelisted user deposits USDC into the jUSD minting contract on Ethereum

• The collateral manager transfers the USDC and bridges it to Solana

• JLP is acquired on Solana

• A portion of JLP is posted as collateral to borrow USDC while the rest of the JLP is transferred to a multisig

• Borrowed USDC is sent to Copper, mirrored on an exchange and used to open short perpetual positions aligned with JLP composition

• Hedge positions are continuously monitored and resized as JLP composition changes

• The revenue earned is used to mint new jUSD, which is deposited into the staking contract, increasing the value of sjUSD

• Upon redemption, JLP is sold, USDC is bridged back and part of the hedging position is closed

  

Throughout this process, the protocol tracks balances, exposures and liabilities in real time. The goal is to maintain consistent delta-neutrality while capturing sustainable yield.

Risk Controls

jUSD’s design prioritizes transparency and predictability over aggressive yield optimization. Borrowing against JLP is capped and hedge positions are continuously adjusted to keep exposure aligned with the underlying collateral. The protocol does not rehypothecate collateral and borrowed assets remain within trusted custodians.

Risk management focuses on several components:

• Hedge accuracy: ensuring that exposure to prices of BTC, ETH and SOL remains close to zero, while mirroring JLP's composition

• Leverage constraints: closely monitoring hedge position margin, along with maintaining conservative LTV ratios for borrowed USDC

• Liquidity management: ensuring redemptions can be met without impacting the underlying strategy

• Operational isolation: separating custody, execution and yield to reduce contagion during potential failures

Losses from negative funding or market volatility are absorbed by the Aegis insurance fund, before affecting users, and yield distribution is adjusted dynamically to reflect realized gains.

sjUSD and Yield Distribution

sjUSD represents the yield-bearing version of jUSD. The protocol increases the backing of sjUSD by depositing the earned revenue as minted jUSD, which increases its value. This design allows yield to compound automatically without requiring user interaction.

Users can stake jUSD for sjUSD to earn yield, or unstake sjUSD back into jUSD to realize the yield earned. The yield is earned from JLP revenue and funding rates on the hedge position (if positive).

Design Philosophy

jUSD is built around the idea that sustainable onchain yield should come from real activity within the market, which is verifiable in real time. By anchoring its design to trading revenue and enforcing strict risk controls, the system aims to deliver a stable, transparent yield source that remains viable across various market conditions.

The design emphasizes controlled execution and clearly defined operating boundaries on every aspect of the protocol. Capital movement follows predetermined paths, with specific limits governing how collateral is deployed, how exposure is adjusted and how positions are maintained over time. These limits are enforced through rigorous backtesting that removes unexpected behavior and reduces the chance of asset price exposure as market conditions change.

Choose Aegis, because your money deserves better.

For a protocol that accepts user capital, the absence of a transparency dashboard removes the ability to validate how the strategy is executed in practice. Without direct visibility into collateral management and position handling, users cannot determine how yield is produced or how losses would be absorbed. When a protocol provides no transparency dashboard, risk assessment depends on operator statements because users lack access to verifiable execution data.

At Aegis, transparency is a core operating requirement. Aegis provides a native transparency dashboard along with a third-party Proof of Reserves dashboard provided by Accountable. These interfaces present data on how the underlying strategy operates.

On the transparency dashboard, users can verify the following metrics:

• Weekly APR history (1m, 3m and YTD data showing realized yield distributions to sYUSD holders over time).

• Collateral breakdown (composition of BTC collateral and its allocation to custodians through OES).

  

• YUSD supply and position history (total YUSD in circulation and the notional value of hedging positions, with temporary variance driven by spot and futures price differences).

• Reserve fund history (growth of the insurance fund balance used for loss absorption).

• Custodian attestations and smart contract audit reports.

  

In the market data section, users can review:

• BTC funding rate history

• Positive/negative funding rate days ratio

• YUSD yield relative to 3 month US Treasury yields

  

This data links yield metrics to the underlying funding environment and allows users to evaluate how funding conditions affect sYUSD returns.

The Accountable Proof of Reserves dashboard uses cryptographic verification and secure data acquisition to produce continuous attestations of verified reserves and liabilities. Data is updated in real time with proofs derived from primary onchain and offchain sources and validated through confidential computing and ZK proof methods.

It allows users to verify that reserves cover outstanding liabilities and to confirm hedging positions and reserve status using independently generated attestations.

On the Accountable dashboard, users can view the following data points:

• Verifiability (percentage of total assets pulled directly from primary sources and validated through cryptographic verification during data acquisition).

• Collateral ratio (Value of verified BTC collateral relative to total YUSD in circulation).

• Delta neutrality status (whether hedging positions maintain neutral exposure to BTC price movements).

• Total YUSD supply (verified circulating supply at the time of each update).

• Total protocol reserves (verified total value of BTC collateral and related positions).

• Insurance fund value (verified balance of the reserve used for loss coverage).

• Custodian and chain distribution (locations where collateral is held and the distribution of assets across supported chains).

  

These metrics allow users to evaluate solvency by reviewing reserve coverage, hedging alignment and insurance capacity using independently verified data.

At Aegis, transparency is treated as an operational requirement for any yield-bearing asset. Protocol reporting includes third-party verification and continuous data publication so users can evaluate solvency using independently sourced information. These disclosures allow users to confirm how capital is managed during both normal operation and periods of market stress.

This standard extends to all future product releases. Aegis will apply the same disclosure requirements to each new asset, including third-party verification and continuous publication of reserve and hedging data. Future products will follow the same disclosure framework that defines what data is published, how it is verified and how often it is updated. These requirements ensure that users can evaluate solvency and risk for new assets using the same verifiable data standards applied to YUSD and sYUSD.

DeFi has a transparency problem when it comes to providing information on how capital is actually deployed. Vault products are often packaged as a simple "one click" experience while the actual risks are obfuscated in a way which makes it impossible for depositors to evaluate. Counterparty exposure, offchain strategies, hidden leverage and third-party fund managers are rarely disclosed to the average retail user. That lack of visibility goes unnoticed until a sharp market move triggers a liquidation cascade and causes a bank run event.

The past few months have provided several relevant examples:

1.1 Stream's xUSD

Stream disclosed a ~$93m loss tied to an external fund manager and paused deposits and withdrawals. Once withdrawals were paused, xUSD's price plummeted on DEX's, as that was the only way for the users to exit.

The users were only able to see the onchain wallets shown on Stream's DeBank, while a significant portion of the backing was deployed offchain with no independent verification. As a result, depositors had no way to assess the true solvency of the protocol or the risks they were exposed to.

Current xUSD price: $0.034

1.2 Elixir's deUSD

Following xUSD's insolvency, Elixir announced it would wind down deUSD after it became clear that a significant portion of the backing had been lent out to the Stream team. This exposure was not disclosed to users beforehand, despite deUSD being positioned as a market-neutral asset. The team has enabled 1:1 USDC redemptions and made the holders whole, however Elixir later shut down the protocol and transferred control to the community following the incident.

Even if a token appears “fully-backed”, backing that is lent out to a third-party can automatically be considered lost.

Current deUSD price: $0.01

1.3 USDX by StablesLabs

USDX is another example of how quickly a depeg can happen when users have no way to independently assess a synthetic dollar's backing. After the crash on 10/10, questions began to surface about whether losses had occurred within the basis trade strategy backing USDX, but there was no onchain data or external verification to confirm the state of the positions.

With no visibility into collateral solvency, uncertainty quickly spread. As redemptions weren't being facilitated and no communication was provided by the team, users rushed to secondary markets to exit, causing a rapid selloff and pushing the price well below its intended value.

Current USDX price: $0.043

1.4 DeFi Contagion Effects

When xUSD and deUSD lost their pegs, the impact spread immediately through lending markets. Positions backed by these assets were forced liquidated as collateral values dropped, leading to increased withdrawals, which sharply pushed utilization and borrow rates higher across affected vaults.

Many users had supplied assets like USDC and USDT into lending markets that were used as loans for xUSD and deUSD looping. When the collateral value dropped, borrowers stopped repaying, leaving lenders effectively trapped. Even though they had supplied stable assets, withdrawals became impossible because the collateral supporting those loans had lost value and could no longer be liquidated in an orderly way.

This is what happens when risk is hidden and not fully disclosed. When visibility is absent, an asset's price becomes the only signal left.

2. Accountable's Solution

Accountable provides infrastructure that allows protocols to prove their assets, liabilities and solvency using verifiable data from custodians and trading venues. Instead of relying on self-reported dashboards or periodic attestations, Accountable connects directly to data sources and produces cryptographic proofs that reflect the current state of funds and positions. This allows users to verify backing and exposure in real time without relying on trust or manual disclosures.

2.1 YieldApp

YieldApp is the first yield marketplace built on top of DVN. Every opportunity from borrower vaults to structured credit strategies is backed by live, cryptographically verifiable data. Designed for allocators, YieldApp makes it easy to discover, assess and deploy into yield opportunities you can trust.

2.2 Vault as a Service

Vault as a Service is a modular infrastructure for launching and managing tokenized yield and credit offerings. Each vault is fully customizable, from access rules and interest models to collateral terms, and backed by real-time proofs from DVN. Built for institutions seeking transparency and control to confidently attract allocators through verified offerings.

2.3 Data Verification Network

DVN is a neutral infrastructure layer that enables institutions to share real-time financial reporting of assets and liabilities across wallets, exchanges, custodians and banks without revealing sensitive information like API keys, wallet addresses or trading strategies. Reports can be shared privately (peer to peer), semipublicly, or fully onchain through oracle feeds, with cryptographic proofs embedded by default.

3. The Aegis Yield Vault

Pre-deposits are open until Jan 8 for the Aegis Yield Vault on Monad.

The vault is built via Accountable's VaaS and limits exposure exclusively to Aegis assets and predefined conservative strategies, with all positions and balances verifiable through the DVN.

3.1 Deposit Asset Flow

The operational flow is:

1. A user deposits USDC into the vault on Monad

2. The USDC is bridged to Ethereum

3. USDC is used to mint YUSD

4. Most YUSD is staked for sYUSD to earn native yield

5. A smaller allocation is utilized in the YUSD/sYUSD Curve liquidity pool to support deep liquidity

The user experience remains a single click deposit, while the vault manages the execution steps in the background.

3.2 Vault Exposure

Below is a breakdown of what users gain exposure to by depositing into the vault:

1. YUSD is a BTC backed delta-neutral digital dollar. The core of the strategy is utilizing BTC-M perpetual futures. BTC is held on custodians while offsetting perpetual short positions are opened to hedge its price and earn funding rate payments, which become the yield source.

   Collateral balances and hedge positions are made visible through Accountable’s Proof of Reserves dashboard, allowing users to see how the BTC collateral is managed.

2. sYUSD is the yield-bearing version of YUSD. When users stake YUSD for sYUSD, their balance begins to accrue yield generated by the underlying strategy. The value of sYUSD increases over time as yield accumulates, reflecting the performance of the strategy while keeping exposure tied to the same underlying asset.

3. YUSD and sYUSD are deployed into a Curve liquidity pool, a widely used and established protocol for stable asset trading. The pool is designed to support efficient entry and exit under normal market conditions.

   Exposure to the Curve pool is limited and used only to support liquidity, where pricing and liquidity are determined by pool balances and trading activity.

3.3 Yield Generation

Aegis generates yield by using BTC-M perpetual contracts. Margin and PnL are settled in BTC, which allows the strategy to hold spot collateral and hedge asset price exposure. This avoids reliance on stablecoin based settlement, reduces counterparty exposure risk and provides access to deeper liquidity in BTC derivatives markets.

The strategy maintains offsetting positions so price movements are neutralized, while funding rate payments accumulate over time and are the yield source for sYUSD. Position sizing, margin buffers and liquidation thresholds are actively managed to keep exposure within defined risk limits and ensure funding rate revenue remains stable.

3.4 Risk Mitigation

Aegis uses institutional custody and off-exchange settlement for its BTC holdings. This includes utilizing Copper's ClearLoop, to reduce CEX counterparty exposure during trade execution and collateral management.

Aegis also maintains an insurance fund designed as an additional buffer for negative funding rate periods or any potential losses incurred by the strategy.

These components are designed to reduce the surface area where depositors take uncompensated risk.

Learn more about the custody model used by Aegis:

Aegis

@aegis_im

x.com/i/article/2004…

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1:48 PM • Dec 29, 2025

3.5 Vault Earnings

Depositors receive 4 return streams, each tracked independently:

• sYUSD native APY

• MON incentives

• ACC points

• Aegis points

This strategy is designed to produce double-digit returns while maintaining a conservative risk profile.

4. How to Deposit

Depositing into the vault is very simple:

1. Go to the vault page

2. Connect your EVM wallet

3. Review, accept and sign the MLA

4. Enter a USDC amount on Monad (keep some MON for gas)

5. Approve USDC

6. Sign the deposit transaction

After that, the vault executes the bridging, minting and routing while the user accrues yield and additional incentives.

5. A New DeFi Primitive

Many recent DeFi failures could have been mitigated if users had the ability to verify where collateral was held or the health of underlying positions. These failures typically occurred when exposure was obscured, leverage was embedded in ways users could not see and collateral could not be independently assessed. When users had no way to verify how assets were deployed or how positions were structured, risk accumulated undisclosed, until redemptions were paused and available liquidity in secondary pools was depleted, leading to the assets depegging.

Aegis is a protocol built to issue transparent dollar assets, designed to withstand any market environment. The goal is to offer a stablecoin with a transparent yield-generating strategy, strict risk limits and collateral composition that can be monitored continuously.

The Aegis Proof of Reserves dashboard is powered by Accountable and is intended to give users visibility into collateral value and hedging positions with ZK-proof based verification. Users can review reserve composition, overcollateralization ratios, supply and delta-neutrality indicators, with data sourced from custodians and exchanges, and proven through Accountable’s verification framework.

In an environment where stablecoins and yield products have failed due to hidden leverage and unclear backing, the Aegis Yield Vault provides verifiable asset data, enforces defined risk controls and reduces uncertainty around how funds are managed.

Choose Aegis, because your money deserves better.

The collapse of FTX in 2022 showed the consequences of centralized exchange risk. FTX was once one of the largest crypto platforms in the world, with over a million users, but it suddenly became insolvent after a market downturn revealed deep financial mismanagement. Investigations showed that FTX had transferred customer deposits to its affiliated trading firm, Alameda Research, without users’ knowledge. Alameda used those assets to make risky investments and cover losses. Much of Alameda's balance sheet was concentrated in FTT, the FTX native token, which lacked independent market value outside the exchange and it was used as collateral for loans. When the true state of Alameda’s holdings became known, the value of FTT collapsed and customers rushed to withdraw funds. FTX was unable to meet withdrawal requests, froze customer access and ultimately filed for bankruptcy, leaving billions of dollars of customer funds stuck in the bankruptcy process for years.

For protocols that rely on centralized exchanges to execute trading strategies, this introduces a critical design question. How can exposure to exchange liquidity be maintained without transferring custody or underwriting full counterparty risk?

This question is particularly important for delta-neutral strategies, where capital efficiency and uninterrupted execution are required, but capital preservation is paramount.

Counterparty Risk Explained

Yield strategies built around perpetual futures rely on continuous access to derivatives markets. Funding rate payments, position rebalancing and margin maintenance all require reliable exchange execution.

If assets are custodied directly on an exchange, any failure of that platform creates an immediate and total risk to capital. Even if the strategy itself is sound, counterparty failure alone can result in a loss.

For a yield-bearing stablecoin protocol like Aegis, this risk is unacceptable. A delta-neutral system designed to produce stable returns must be insulated from potential exchange failures. This is where off-exchange settlement becomes foundational rather than optional.

Overview of Major OES Providers

Several infrastructure providers now offer off-exchange settlement frameworks designed to separate custody from execution. The three most relevant to institutional crypto trading are Copper, Ceffu and Fireblocks.

1. Copper: ClearLoop

Copper's ClearLoop enables clients to trade on supported exchanges while keeping assets in Copper controlled custody. Funds remain in segregated accounts, and trading exposure is mirrored to exchanges via a controlled credit framework.

Settlement occurs through predefined reconciliation cycles, reducing direct counterparty exposure while preserving execution efficiency. Aegis uses ClearLoop alongside institutional trading desks and custodians to access exchange liquidity without transferring asset custody.

2. CEFFU: MirrorX and MirrorRSV

CEFFU offers an off-exchange model built around asset mirroring. Assets are held in segregated custody while corresponding balances are reflected on connected exchanges.

MirrorX supports active trading with periodic settlement, while MirrorRSV emphasizes on onchain verification and segregated custody. Ceffu’s architecture is closely integrated with Binance infrastructure and is primarily used by institutional clients operating within that ecosystem.

3. Fireblocks: Off-Exchange Settlement

Fireblocks provides an off-exchange model built on MPC controlled vaults. Assets remain in Fireblocks custody while mirrored exposure is granted to exchanges through controlled settlement channels. Fireblocks emphasizes real-time risk controls, policy enforcement and integration across multiple exchanges and custodians.

Each of these systems addresses counterparty risk in different ways, but the common objective is the same: preserving asset custody while enabling active trading.

How Aegis Implements OES

Aegis integrates off-exchange settlement through Copper ClearLoop as part of our core infrastructure.

YUSD backing collateral is held with Copper in segregated custody. When Aegis deploys capital to execute its delta-neutral strategy, positions are mirrored onto supported exchanges (currently OKX and Bybit) through ClearLoop rather than transferring assets directly onto exchange wallets.

For BTC exposure, Aegis uses BTC-M perpetual contracts, which allow hedging without centralized stablecoin counterparty exposure. These positions are opened against mirrored collateral while the underlying BTC remains under custodial protection.

This setup enables several critical properties:

• Custody separation: Assets remain under third-party custody and are never deposited onto the exchange.

• Operational continuity: Positions can be managed without moving funds between wallets.

• Risk containment: Exchange failure does not automatically imply loss of collateral.

We publish transparency data showing custodial balances, hedge exposure and system status. Custodian attestations provide additional verification that assets held off-exchange correspond to deployed positions.

The purpose of off-exchange settlement within the Aegis model is not complexity for its own sake. It is a safeguard designed to support sustainable low volatility yield.

By combining delta-neutral strategies with institutional custody and verifiable settlement, Aegis reduces reliance on any single exchange while preserving the ability to generate funding rate revenue. This architecture allows the protocol to earn yield without exposing users to the same risks that have historically affected centralized exchanges.

As Aegis continues to expand its infrastructure, off-exchange settlement remains a foundational component of its risk framework. It enables the protocol to operate with institutional risk management while remaining accessible onchain.

This approach reflects Aegis’ broader design philosophy: prioritizing capital protection, transparency and resilience over short-term yield maximization.

Below is a full recap.

1. TermMax Integration: sYUSD and PT-sYUSD Markets Live

sYUSD and PT-sYUSD (Dec 18) are now listed on TermMax.
Users can borrow USDC at a fixed rate using sYUSD or PT-sYUSD as collateral. The borrowed capital can be cycled into additional PT-sYUSD to enhance exposure to fixed yield while keeping borrowing costs predictable.

A looping guide is available here.

These markets expand the fixed rate environment for Aegis and give users access to fixed borrowing rates that align with their risk profile.

2. Nexus Mutual: YUSD Cover Now Available

YUSD is now supported on Nexus Mutual.
Users can purchase cover for their YUSD exposure, adding an optional protection layer on top of the existing insurance fund provided by Aegis.

This gives users access to third-party risk protection across custody, exchange, and strategy components.

Cover is available at:
https://app.nexusmutual.io/cover/product/357

3. Orderly Championship: Aegis DEX Participation and AEG Rewards

Aegis is contributing 0.3% of total AEG supply to the Orderly Ultimate Crypto Championship.
Traders who use YUSD as collateral across participating Orderly platforms are eligible for the rewards.

Allocation is based on YUSD usage and overall trading performance.
This includes users trading on Aegis DEX.

Competition details:
https://app.orderly.network/campaigns

4. Season 1 Recap

Season 1 ran from April 16 to November 17 and played a core role in scaling Aegis.
During this period Aegis expanded across chains, integrated with leading DeFi platforms, and launched Aegis DEX.

Highlights include:

• YUSD exceeding $40m in TVL
• Thousands of users participating across LPing, staking, and fixed yield markets
• About 9.5% of future AEG supply allocated to Season 1 participants
• More than $750k distributed in yield to YUSD and sYUSD holders
• Weekly distributions of 0.3% of future AEG supply, fully visible to users

Season 1 established a clear standard for transparency and supply visibility in point programs.

5. Season 2 Launch

Season 2 is now live and represents the final stage of the points program before TGE.
6% of total AEG supply is allocated to this phase.

Key updates:

• Points now appear as a unified balance
• Weekly token distributions continue, but weekly token supply allocations are no longer displayed
• The change provides Aegis with flexibility to align reward timing with integrations and liquidity growth
• Core DeFi multipliers remain the same
• Aegis DEX reward mechanisms for trading and YUSD balances will go live a few weeks into the season

Season 2 is designed to be a clean continuation for existing users while preparing the ecosystem for TGE.

Start earning:
https://app.aegis.im/earn

6. sYUSD/USDC Pool Live on SushiSwap on Katana

A new sYUSD/USDC pool is now active on SushiSwap on Katana.

Liquidity providers earn:

• Native sYUSD APY
• Swap fees
• KAT incentives
• 5x Aegis Points multiplier

The pool gives users a simple path to combine multiple yield sources while deepening liquidity for sYUSD.

Pool link:
https://www.sushi.com/katana/pool/v3/0xa9d2dcc7581dd96c4851afb04463ddb65a4b0d87

Closing

Thank you to everyone participating across Season 1 and Season 2.
The progress of Aegis has been shaped entirely by the community. Each integration, liquidity expansion, and new market reflects user demand for transparent, risk-managed, yield infrastructure.

Season 2 is underway, and the next phase of growth is already in motion.
More integrations, more fixed yield markets, and a new product launch are on the way as we continue preparing for TGE.

Choose Aegis, because your money deserves better.

Aegis Points reflect ownership in the system and will eventually support governance once AEG is live. The program is designed to reward long-term participation and provide users with direct influence over how the protocol evolves. This guide explains every way points can be earned and how each strategy works at a technical level.

Ways to Earn Aegis Points

Below is a complete outline of all supported strategies.

1) Holding YUSD

Users earn 1 point per YUSD per day.
YUSD is the base stablecoin of the Aegis ecosystem.

Acquire YUSD at: https://app.aegis.im/buysell?direction=buy

2) Holding sYUSD

Users earn 0.5 points per sYUSD per day.
sYUSD represents staked YUSD that accumulates underlying yield.

Stake your YUSD: https://app.aegis.im/yield

3) Providing Liquidity

Liquidity providers earn 10 points per 1 dollar of liquidity.

To provide liquidity, users supply assets to the YUSD liquidity pools, allowing swaps between YUSD and other stables assets. LPs earn points and trading fees. Liquidity provision supports market depth and improves execution quality for traders.

A full guide is available here.

4) Pendle Liquidity Provision

Pendle liquidity providers earn 5 points per 1 sYUSD in the pool (only on the SY portion).

Providing liquidity on Pendle offers several yield sources and remains one of the more efficient ways to gain diversified exposure to sYUSD yield.

When users supply SY-sYUSD liquidity to the Pendle market, they earn:

• PT-sYUSD yield
• sYUSD underlying yield
• Swap fees from market activity
• Aegis Points
• Pendle incentives (when active)

Deposit liquidity here.

5) Holding Pendle Yield Tokens (YTs)

YT holders earn 5 points per YT-sYUSD per day, and they capture the entire variable yield of the asset.

What YTs represent

A YT is a tokenized claim on all future yield generated by a yield-bearing asset until maturity. Holders receive yield directly, while PT holders redeem principal at maturity.

Benefits of YTs

Right now, users can acquire approximately 265 YTs per 1 sYUSD.
This gives YT holders:

• Yield equivalent to 265 sYUSD until Dec 18
• 1325 Aegis Points per day until Dec 18
• A leveraged claim on future yield without supplying large principal
• A direct bet on future sYUSD yield performance

YT strategies have become the most efficient way to accumulate Aegis Points and capture amplified yield exposure.

Check out our YT guide here.

6) Depositing YUSD on Rho

Users locking YUSD into fixed yield vaults on Rho X receive Aegis Points and Rho Points.

How Rho X Earn works

Rho packages delta-neutral trading strategies into fixed yield vaults. These vaults provide a target APY for a defined maturity date. Users do not manage positions themselves. They deposit YUSD, hold until the term ends, and withdraw principal plus fixed yield at maturity.

What users earn

• Fixed YUSD yield
• 5 Aegis Points per YUSD per day
• 50 Rho Points per 100 YUSD locked

This provides predictable yield without active management.

Reference announcement:
https://x.com/aegis_im/status/1985380677978828870/photo/1

7) Aegis DEX Signup and Trading

Users who sign up for Aegis DEX and complete a trade earn 500 Aegis Points.
Aegis DEX is available at: https://aegisdex.io/

Trading with YUSD on Aegis DEX provides additional long-term benefits. YUSD functions as yield-bearing collateral, allowing traders to maintain exposure to funding rate yield while using the asset for margin. Activity on Aegis DEX will be included in future reward programs, and early users who trade with YUSD are positioned to receive upcoming incentives tied to the exchange.

This makes Aegis DEX both a functional trading environment and a high-value source of future rewards for users who actively participate.

Closing

Aegis Points outline user participation across the ecosystem and form the basis for future AEG distribution. Season 2 is the final phase before TGE, and the current structure allows users to select the strategies that best match their risk profile and activity level.

We look forward to sharing more as the protocol expands and as new components of the platform come online. The community will play a central role in guiding the direction of Aegis through future governance.

Disclaimer

This guide is for educational purposes only. It does not constitute financial advice, investment advice, or an offer to participate in any financial product. Digital assets carry risk, including potential loss of principal. Users should conduct independent research and consult professional advisors before participating in any strategy described in this document.

The Aegis Points Program has been running since April 16th and it has played a central role in the protocol’s growth. During this period, Aegis has expanded across chains, integrated with leading DeFi protocols, and introduced a new product: Aegis DEX.

The community helped push YUSD past $40 million in TVL, with thousands of participants contributing to liquidity provision, yield trading and staking. Since launch, ~9.5% of the future AEG supply has been allocated to Season 1 participants and more than $750k in yield has been distributed to the YUSD/sYUSD holders.

Season 1 set a new transparency standard for point programs. Every week, Aegis distributed 0.3% of future AEG supply and participants could see exactly what share of the token supply they earned.

This design allowed Aegis to deliver one of the clearest and most transparent points programs in the industry.

Season 1 will end on 17th Nov, with Season 2 starting later that day.

Season 2 Launch

This marks the final phase of the Aegis points program before the AEG token launch. The program will allocate 6% of the total AEG supply to Season 2, creating a clear incentive structure for long-term users as the protocol moves toward governance.

Aegis will shift away from fixed weekly token distribution. This provides the flexibility needed to align rewards with integrations, liquidity partnerships, and milestones leading up to TGE.

Points multipliers remain the same for DeFi activity: holding YT-sYUSD(x5), supplying sYUSD to money markets(x3), and providing YUSD liquidity(x10). This keeps the program structure consistent and ensures a seamless transition for the users.

Season 2 will also introduce new ways to earn points through Aegis DEX. Trading activity and YUSD balances on the DEX will contribute to point accumulation. These new DEX based rewards will go live a few weeks after Season 2 begins, giving users time to position and allowing the program to scale in an orderly way.

Additionally, Aegis will launch a new product during Season 2. It will create additional opportunities for users and play an important role in the next stage of the protocol. More details will be published soon.

Season 2 of the points program will run until the AEG token launch. This is the final phase of the points program before TGE and the team is preparing the protocol for the transition into token governance.

Closing

Thank you to everyone who has participated in the points program so far. The growth of Aegis has been entirely driven by the users. The community has supported every integration, chain expansion, and every new product launch that brought the protocol to where it is today.

Season 2 is the final phase before TGE, and the team is focused on making sure YUSD holders, LPs, stakers, and long-term supporters are rewarded for their role in shaping the protocol. Aegis would not exist without its users, and we look forward to building the next chapter together.

Choose Aegis, because your money deserves better.

What are Pendle PTs

Pendle splits yield-bearing assets into two components:

• PT (principal token)

• YT (yield token)

PT represents the principal value that is redeemed at maturity. When users buy PT at a discount and hold until maturity, they lock in a fixed yield. This creates predictable return that does not depend on variable interest rates or market volatility.

PT-sYUSD gives users exposure to sYUSD’s underlying yield, but in a fixed format with a defined maturity date. Users who prefer stable, consistent returns often choose PTs over variable-rate lending or farming.

Learn more by checking out the Pendle docs.

What is TermMax

TermMax is a fixed-rate lending protocol where users borrow assets at a predictable, pre-agreed rate. Instead of variable borrow APY that can spike when utilization increases, TermMax lets users lock in a fixed borrow rate for the entire term.

In this strategy, users:

• Supply PT-sYUSD as collateral

• Borrow USDC at a fixed rate

• Swap it back into YUSD and repeat the loop

The system revolves around fixed yield on both sides. PT-sYUSD earns fixed returns until maturity, while the USDC borrow rate is also fixed until maturity. This removes the risk of borrow spikes making the position unprofitable.

Step by Step Guide

1. Go to the Aegis buy page and swap USDC or USDT for YUSD

2. Go to the Earn tab and stake YUSD for sYUSD(Unstaking has a 7-day cooldown)

3. Go to the Pendle PT-sYUSD market and swap your sYUSD for PT-sYUSD(Dec 18)

4. Go to the TermMax market, deposit PT-sYUSD as collateral, and borrow USDC

5. Swap the borrowed USDC back into YUSD on the Aegis app and repeat the process.

Understanding the Strategy

• PT-sYUSD allows users to earn fixed APY

• USDC borrow rates are fixed on TermMax

A 90% LTV means the user can borrow $0.9 in USDC for every $1 of PT-sYUSD collateral. When looped, the collateral’s yield is amplified.

PT-sYUSD earns a fixed return until December 18. Borrowing against PT on TermMax lets users buy more PT-sYUSD, which earns a fixed yield, depending on the trading activity in the pool. Each loop adds more PT working for you, while the borrow rate stays fixed for the entire term.

Instead of earning fixed yield on their principal, users can earn it on a larger PT notional balance thanks to leverage. This multiplies the effective return while keeping the borrow rate predictable.

Please note: You must repay your TermMax debt before the market’s maturity on December 25, 2025. When PT-sYUSD matures on December 18, redeem it for sYUSD, convert the sYUSD back to YUSD on Aegis, and use it to repay the USDC loan on TermMax.

Importance of Fixed Borrow Rates

Both sides of the trade are fixed until maturity, which means:

• No exposure to borrow rate spikes

• No auto-liquidations due to variable interest rates

• Predictable returns until December 18 maturity

Many looping strategies fail when variable borrow rates jump higher than the yield being earned. Fixed rates remove this risk. The user does not need to exit early or suffer slippage to unwind during volatile market conditions. As long as collateral value remains stable relative to debt, the strategy remains functional.

Risks

Although this strategy is more predictable than variable-rate looping, it still carries risk:

1. Underlying collateral risk: PT-sYUSD value depends on YUSD being overcollateralized. If the value of YUSD drops due to market stress, collateral value decreases. This can increase liquidation risk.

2. PT price sensitivity: PT prices fall when the implied yield rises. If PT-sYUSD price declines, collateral value decreases. This can push a position closer to liquidation.

3. Smart contract risk: Aegis, Pendle and TermMax are all deployed through onchain smart contracts. Users rely on the security of these contracts, audits, and operational safeguards. Exploits, oracle failures, or contract bugs can lead to loss of funds.

4. Liquidity risk: If users need to unwind early, the PT-sYUSD price on the Pendle market may suffer due to slippage. There is no guarantee of deep liquidity at all times, especially during market stress.

Disclaimer

This guide is for educational and informational purposes only. It should not be interpreted as investment advice, trading advice, financial advice, or a recommendation of any specific product or strategy. Digital assets involve risk, including the potential loss of principal. Users are responsible for conducting their own research, evaluating their personal risk tolerance, and consulting a qualified financial professional if needed. Aegis, Pendle, and TermMax do not guarantee the performance or future value of any asset or return. Onchain strategies can be complex and should only be used by individuals who fully understand the risks involved.

Within 24 hours, over $19 billion in positions were wiped out. More than 1.6 million traders were liquidated. Bitcoin fell from $122,000 to $102,000, a 13% decline. Ethereum dropped 15–18%. Across the market, altcoins collapsed by 50-90%.

The sell-off was intensified by structural flaws on major exchanges, cascading liquidations across the industry and erasing billions in value in a matter of hours.

Yet amid the most violent stress test the digital asset ecosystem has ever seen, YUSD held its peg flawlessly.

YUSD Performance

While major assets crashed and centralized platforms malfunctioned, Aegis continued to operate flawlessly:

• YUSD held its $1 peg across all decentralized exchanges

• No collateral was lost

• No systems failed

The magnitude of the collapse makes this stability even more remarkable. As BTC and ETH shed hundreds of billions in market capitalization and on-exchange stablecoins briefly deviated from their pegs, Aegis systems functioned exactly as designed. No redemption delays occurred, liquidity remained deep, and every YUSD stayed fully backed and accessible.

Aegis Resilience

Aegis was built to eliminate single points of failure and counterparty exposure. During the October 10th event, several key design choices proved decisive:

• Off-exchange settlement via Copper Clearloop: Aegis positions are held with institutional custodians, meaning collateral never sits directly on exchanges. This prevented any exposure to on-platform malfunctions or mispriced collateral systems.

• COIN-M Perpetual Contracts: Aegis operates on COIN-M contracts, which isolate BTC-denominated exposure and remove the risks associated with USD-M contracts that depend on external stablecoins.

• No Price Exposure: The delta-neutral structure ensures YUSD’s value remains stable regardless of BTC’s market movements. The system continually hedges market risk, keeping every unit of YUSD fully backed and neutralized.

• Insurance Fund: A dedicated $600,000 insurance fund exists to cover adverse market events or negative funding scenarios, reinforcing user confidence and capital integrity.

• Real-time Proof of Reserves: Aegis integrates with Accountable, offering continuous, on-chain proof of reserves and liabilities. Every user can independently verify that assets and collateral are exactly where they should be.

These mechanisms worked seamlessly during one of the most violent liquidity shocks in market history.

Conclusion

The recent liquidation cascade underscored a truth many in crypto overlook: knowing where your collateral is matters. Billions were lost because assets were rehypothecated, mispriced, or trapped within opaque systems.

Aegis stands apart. Transparency and security are embedded in our core architecture. Every YUSD in circulation is fully backed, transparently verifiable, and protected by institutional-grade custody and insurance.

When volatility strikes and trust in infrastructure is tested, systems built on transparency, neutrality, and collateral integrity endure.

Choose Aegis, because your money deserves better.

Aegis DEX is a new trading venue designed for capital efficiency and real on-chain yield. Built on top of Orderly One’s omnichain orderbook infrastructure, it combines professional-grade performance with transparent, yield-bearing collateral.

This is not just another DEX. It is where liquidity, execution, and yield converge.

Institutional-grade performance on Orderly One

At its core, Aegis DEX leverages the Orderly One infrastructure to deliver the same high-speed, low-latency trading experience that powers top decentralized perpetual exchanges.

Traders gain access to shared liquidity, deep books, and advanced risk management through a unified matching engine. Execution feels CEX-level, while settlement and custody remain fully on-chain.

This architecture unlocks the best of both worlds: exchange-grade performance with DeFi transparency.

Yield-bearing collateral

The key differentiator of Aegis DEX is its native support for yield-bearing collateral, specifically, YUSD, issued by Aegis.

YUSD is a BTC-backed, delta-neutral stablecoin that generates sustainable real yield from funding rates.

When traders use YUSD as margin, their collateral continues to earn yield in real time. This creates a new form of capital efficiency:

• Instead of idle stablecoins sitting in a wallet, your margin position continues to accrue yield

• Yield offsets funding rates and trading fees, improving profitability

• Collateral efficiency increases as traders maintain exposure to both markets and yield

This mechanism turns trading collateral into a productive asset, aligning incentives between liquidity providers, traders, and the protocol.

Seamless cross-chain access

Aegis DEX inherits Orderly’s omnichain architecture, giving users unified access to liquidity and collateral across EVM ecosystems.

This means traders can bring YUSD across supported chains and deploy it instantly on Aegis DEX without friction. Wherever Orderly goes, Aegis DEX will follow, ensuring deep liquidity and composability across networks.

Sustainable yield meets scalable trading

By combining Aegis’s BTC-backed yield infrastructure with Orderly’s execution layer, Aegis DEX introduces a new model for decentralized trading: one where liquidity is not only deep, but also productive.

The system rewards efficiency and sustainability instead of short-term incentives, building a foundation for long-term adoption among sophisticated traders and institutions.

The future of trading collateral

Aegis DEX represents the next phase of evolution for DeFi derivatives, a platform where collateral is as intelligent as the traders using it.

Yield-bearing margin, omnichain liquidity, and institutional-grade execution define a new standard for decentralized markets.

Trade efficiently. Earn sustainably. Just use Aegis.

Providing liquidity is one of the core ways users earn yield in DeFi. By depositing tokens into a liquidity pool, users enable others to swap between those assets efficiently while earning a share of the trading fees generated by the pool.

People provide liquidity because it allows their idle assets to work for them. Instead of simply holding tokens, LPs earn passive income through fees and potential incentives distributed by the protocol.

Stable pools like YUSD/USDC are especially attractive because both assets are pegged to the same value. This reduces exposure to price volatility and minimizes impermanent loss, making them ideal for users seeking more stable returns.

Step by Step Guide

1) Buy YUSD: Go to the Aegis Buy/Sell tab and purchase YUSD using USDC or USDT.

2) Go to the Curve Pool: Visit the official YUSD/USDC Curve Pool.

3) Connect Your Wallet: Click “Connect Wallet” to allow Curve to detect your Ethereum address.

4) Add Liquidity: Input an equal amount of YUSD and USDC into the deposit fields. This ensures a balanced contribution to the pool.

5) Deposit and Confirm: Approve the tokens and confirm the transaction to deposit liquidity into the pool.

That’s it. You are now providing liquidity in the YUSD/USDC pool. You will start earning swap fees automatically, along with a 10x Aegs points multiplier (150 points per $1 worth of liquidity supplied into the pool).

Final Notes

Providing liquidity to stable pools like YUSD/USDC is a way to earn consistent yield while supporting the growth of transparent, decentralized stablecoin infrastructure.Always monitor the pool’s APR and rewards structure on Curve, and remember that even stable pools carry smart contract and peg risks.

This guide is for informational purposes only and does not constitute financial advice.

What is Pendle?

Pendle is a DeFi protocol that enables users to tokenize and trade yield-bearing assets. By splitting a yield-bearing token into two components: a Principal Token (PT) representing the underlying asset, and a Yield Token (YT) representing the rights to future yield. Pendle allows users to access more advanced and flexible yield strategies.

What are YT Tokens?

A YT-sYUSD token represents the right to claim the yield generated by 1 sYUSD up until Dec 8. In addition to yield, each YT-sYUSD token accrues Aegis Points at a rate of 75 points per day per 1 YT. This means that holding YT-sYUSD provides both financial returns and protocol incentives, making it a dual-yield strategy.

Effectively, purchasing YT-sYUSD allows you to gain leveraged exposure to sYUSD yield and points accumulation, separate from holding the underlying principal token.

How to Buy YT-sYUSD Tokens

To purchase YT-sYUSD on Pendle, follow these steps:

1) Go to the Pendle Swap Interface: Pendle YT-sYUSD Market

2) Select the Amount: Input the amount of assets you want to spend to purchase YT tokens. For precision and price protection, it is recommended to use limit orders.

3) Confirm and Execute: Review the transaction details, including slippage and gas fees, then confirm the swap through your connected wallet.

Once the transaction is confirmed, your YT-sYUSD tokens will appear in your wallet, accruing both yield and Aegis Points.

Selling YT-sYUSD Tokens Before Expiry

YT tokens are tradable before they expire. This allows users to:

• Lock in profits: If the market value of YT-sYUSD increases due to rising sYUSD yield or demand for points, you can sell at a premium.

• Manage risk: Users can exit YT positions to reduce exposure to declining yield or market volatility.

• Engage in secondary trading: YT tokens can be swapped on Pendle’s AMM, allowing active traders to optimize returns dynamically.

This trading flexibility makes YT tokens not only a yield accrual tool but also a potential source of short-term trading gains.

Risks and Considerations

• Expiry Risk: YT tokens are time-bound and will expire at the end of the yield period. After expiry, the tokens have no remaining value.

• Market and Price Risk: YT prices fluctuate based on market demand and the underlying yield of sYUSD.

• Leveraged Exposure: Holding YT-sYUSD provides leveraged exposure to both yield and Aegis Points. Gains are amplified, but losses are also magnified if token prices move unfavorably.

• Smart Contract Risk: Pendle interacts with multiple protocols and contracts. Users should always exercise caution and consider the risks of protocol failure or bugs.

Conclusion

YT-sYUSD tokens offer a powerful way to access Aegis yield while earning additional points for protocol participation. By understanding the mechanics, using limit orders, and carefully considering risks, users can leverage Pendle to optimize capital deployment and engage deeply with the Aegis ecosystem.

Disclaimer:* This article is for informational purposes only and does not constitute financial, investment, or trading advice. Users should conduct their own research and consider their risk tolerance before engaging with YT-sYUSD tokens or any other financial products.*

Centralized exchanges hold billions of stablecoins that earn nothing for users. While platforms benefit from deploying that capital, traders and depositors miss out on the yield that should be theirs.

Aegis and WOOFi want to change this. By making collateral yield-bearing, stablecoins can serve two purposes at once: backing leverage while generating yield in the background. This unlocks new levels of capital efficiency and makes trading more sustainable.

WOOFi’s Approach to Capital Efficiency

WOOFi is a DeFi platform that combines trading, liquidity, and yield into one seamless system.

• Perpetuals with LOB: A decentralized trading experience similar to a CEX, but fully on-chain.

• Vaults and Earn: Assets deposited in vaults are deployed in strategies and liquidity provision, returning yield to users.

• Boosters: Gamified rewards that enhance yields for active participants.

The result is a system that maximizes the utility of idle assets while making advanced strategies accessible to everyday users.

YUSD as Collateral

Aegis issues YUSD, a Bitcoin-backed stablecoin engineered to generate yield by arbitraging the BTC funding rate.

Now, users can use YUSD as yield-bearing margin collateral on WOOFi on Ethereum mainnet. This means the collateral is no longer generating yield for a centralized entity it accrues yield for the users using it as margin.

By integrating YUSD into WOOFi’s margin system, users gain:

• Capital efficiency with leverage and yield in one position

• Yield layering that captures both protocol yield and trading opportunity

• A differentiated stablecoin that functions as a productive collateral asset

Step by-Step Guide

Step 1: Acquire YUSD

Swap USDC or USDT for YUSD on the buy page.

Step 2: Connect to WOOFi

• Visit WOOFi

• Connect your wallet

• Create a trading account (this requires 2 signatures)

Step 3: Deposit YUSD

• Deposit YUSD into your margin account

• Sign the deposit transaction

Step 4: Done

Your YUSD is now available as margin collateral, earning the native APY while you trade.

Why This Matters

This is a major milestone for DeFi yield architecture. By enabling YUSD to serve as yield-generating collateral, Aegis and WOOFi bring together trading, yield capture, and capital efficiency in a way that has not been possible before.

Users now access leverage without surrendering yield, and exposure without sacrificing return.

The implications are broad:

• Save on funding costs as yield offsets borrowing expenses

• Layer returns by combining protocol yield and trading profits

• Boost adoption since YUSD offers differentiated leverage utility

• Strengthen liquidity and utility by moving capital from idle into productive and hedged structures

In short, yield-bearing margin collateral is the next frontier. With Aegis and WOOFi, it is now live.

Disclaimer: This article is provided for educational and informational purposes only and should not be interpreted as financial, legal, or investment advice. The strategies, protocols, and platforms discussed carry inherent risks, and readers are encouraged to conduct their own research before making any financial decisions. Trading futures and using leverage involve a high degree of risk, including the possibility of losing more than your initial investment. Liquidations can occur quickly in volatile markets, and traders should exercise caution, use proper risk management, and never trade with capital they cannot afford to lose.