✨HLUSD Stable Mining
Welcome to the HLUSD Stable Mining page, your comprehensive guide to engaging with the HeLa chain ecosystem through stablecoin mining.
Introduction
HLUSD Stable Mining offers a straightforward way to participate in the HeLa chain ecosystem, utilizing its native stablecoin, HLUSD. Participants can earn genuine profits through arbitrage opportunities and receive additional incentives from ecosystem partnerships.
How to Deposit Stablecoins
Choosing Your Coin and Chain: Users can deposit stablecoins such as USDT and USDC from supported blockchains, including Ethereum (ETH), Arbitrum, Binance Smart Chain (BNB), Optimism, and Polygon. With the launch of HeLa’s mainnet, the platform plans to allow deposits directly in HLUSD on the HeLa chain itself.
Staking the Assets: After selecting the stablecoin and chain, users stake their assets on the HeLa platform.
Monitoring your Staked Assets: Once staked, the platform displays the total amount of USDT and/or USDC deposited along with the maturity date—the date when the staking period ends and the tokens can be accessed again.
Secure Handling of Funds: Post-deposit, the stablecoins are transferred into a secure custody account or a Multi-Party Computation (MPC) wallet, ensuring safety and security of the funds.
Yield generation
Once users stake their stable coin, they begin to accrue rewards without any further action.
The yield is generated by funding and basis spreads earned from the delta hedging derivatives positions. Further yield is generated by holding native staked tokens and obtaining their corresponding staking rewards in a delta neutral position.
How funding arbitrage works
Once stable tokens are deposited into the protocol, a long position will be opened by purchasing a token directly in the crypto exchanges. A short position will simultaneously be opened in perpetual futures of the same token to earn a positive funding cost. This is a delta neutral position with little to no exposure to the direction of the market.
Alternatively, a short position can also be opened in the quarterly settled futures market to capture the price difference between spot and futures market. This is called the cash and carry arbitrage
In some cases, a staked token might be purchased instead of the underlying token. For eg, stETH or liquid staking tokens like EETH. These generate additional yield on the strategy
Why is the crypto market conducive to funding rate arbitrage opportunities?
Cryptocurrencies are traded on numerous exchanges worldwide
Each exchange operates independently, leading to varying funding rates for perpetual contracts
These disparities create opportunities for arbitrage
Last updated