Helios Finance
  • Introduction
    • Problem - Solution
    • How Helios Differs from Other Protocols
    • Summary of Capabilities
  • Quickstart
    • Installing Leather Wallet
    • Add MIDL regtest on Leather
    • Get test tokens from faucet
    • Experience the new BTC Defi
  • Architecture
    • Overview
      • Helios & MIDL Architecture Overview
      • MIDL Validator Network (DPoS Consensus Layer)
      • Threshold Signature Scheme
      • Lending Logic Layer by Helios
      • Roles and Responsibilities Summary
    • Bitcoin-Native Smart Contracts
    • Bitcoin Settlement Flow and One-Step Transactions
    • Bitcoin Settlement & Finality
  • Core Concepts
    • Overview
    • BTC-Native Liquidity, Expanded Asset Support
      • Interest Mechanics
      • Supported Assets
    • Partial Collateral Swap (Flexible Position Management)
  • Risk Framework
    • Overview
    • Adaptive Risk Optimization (Mempool- & Volatility-Aware LTVs)
      • More on Adaptive Risk Engine
    • Liquidation Mechanics
  • Capital Efficiency and Use Cases
    • Overview
    • Delta-Neutral Yield Strategies
    • Enhanced Yield for Bitcoin Holders
    • Arbitrage and Market Efficiency
    • Tax-Optimized Borrowing
  • Institutional Compliance and Security
    • Overview
    • KYC-Ready Architecture and Permissioned Pools
      • More on Dual-Layer Market
    • AML, Monitoring, and Auditability
    • Regulatory Alignment (MiCA, BIS/IOSCO, etc.)
  • For Developers
    • Overview
    • Interest Rate Model
    • Supply & Borrow Interest
    • Functions
      • Common Functions
      • Supply & Withdraw
      • Borrow & Repay & Liquidate
      • Flashloan
    • SDK Release Plan
    • Smart Contract Interface via MIDL (EVM on Bitcoin)
    • Transaction Fees
  • Oracles and Price Feeds
  • Running a Liquidator or Integration with Exchanges
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  1. Capital Efficiency and Use Cases

Overview

Helios not only focuses on security, but also on capital efficiency – making sure that BTC deposited can be used in productive ways and that users (especially institutions) can execute advanced strategies. This section explores how Helios enables delta-neutral strategies, BTC basis arbitrage, and tax-optimized use cases that are particularly relevant for sophisticated investors. These examples illustrate the value Helios provides beyond a simple lending platform, highlighting how users can optimize yield and risk.

In summary, Helios significantly improves capital efficiency for BTC:

  • It allows yield generation on a traditionally idle asset (BTC).

  • It opens arbitrage paths that tie Bitcoin into the broader crypto financial system.

  • It provides tools for risk-managed leverage and hedging.

  • It addresses tax and regulatory pain points by design (no forced token swaps, clear record-keeping).

All of these make BTC a more productive asset, potentially attracting large institutional balances to participate, knowing they can do so safely and in a compliant manner.

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Last updated 1 month ago