Delta-Neutral Yield Strategies
Helios makes it possible to turn idle BTC into an on-chain, delta-neutral carry trade that relies solely on decentralized infrastructure—no centralized exchanges, custodians, or CeFi lenders.
Strategy in a Nutshell
Deposit 1 BTC as collateral.
Borrow a Bitcoin-native stablecoin (e.g., Taproot-USDT ) worth 0.67 BTC at a 4 % APR—$65 000 with BTC at $97 000.
Margin-short BTC perpetuals on a decentralized perp DEX using that stablecoin.
Collect funding payments: when the market is net-long—historically the norm—shorts receive 6-10 % APY in funding fees. (Funding Rates For Perpetual Swaps - CoinGlass, GMX | Decentralized Perpetual Exchange, Default funding rates on dYdX, How Delta-Neutral Trading Works: Funding Rate Approach)
Net yield = funding APY – stablecoin borrow APR. With an 8 % average funding rate, the carry is roughly 4 % on $65 000 ≈ $2 600 per year, all while remaining price-neutral.
Why the Position Is Delta-Neutral
Long leg: 1 BTC locked in Helios.
Short leg: the perp contract equal to 0.67 BTC notional.
Gains and losses on BTC price mostly offset; only the interest-rate spread matters.
The sole maintenance task is keeping the loan-to-value below Helios’s adaptive limit—automatically signaled by the protocol’s risk engine.
Pure-DeFi Plumbing
Borrow stablecoin
Helios TSS vaults on Bitcoin
None
Bridge (optional)
Permissionless bridges like Hyperlane for rollup access
Minimal, contract-managed
Perp DEX
GMX (Arbitrum), dYdX (Cosmos), Hyperliquid (Rollup)
None—self-custodial
No wrapped BTC ever leaves the base layer; only the borrowed stablecoin crosses chains if you choose an off-Bitcoin perp venue.
Risk & Mitigation
Funding-rate flip: If funding turns negative, close or size down the short—execution is on-chain and permissionless.
Volatility spike: Helios’s risk engine tightens LTV in real-time; topping up collateral or repaying part of the loan restores headroom.
Bridge risk (optional leg): Limit transfer size or use derivatives on Bitcoin rollups to keep exposure bounded.
Institutional Appeal
Transparent mechanics—all cash flows and collateral states are public and auditable.
No CeFi counterparty risk—entire cycle runs on smart contracts and Bitcoin settlement.
Reg-friendly—every block stores an immutable record, simplifying audit and compliance reviews.
By borrowing a Bitcoin-native stablecoin and matching it with a decentralized perp short, Helios enables a self-custodial cash-and-carry that captures the funding-rate premium while keeping BTC price exposure near zero.
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