Deribit, a leading exchange for digital assets derivatives, has announced the launch of the US Yield Coin (USYC), an innovative yield-bearing cross-margin collateral option, available to all users from October 8, 2024. This new collateral option is designed to enhance flexibility and provide an additional risk management tool for traders on the platform.
USYC is an ERC-20 token that derives its value from reverse repurchase agreements on U.S. Government Securities. This backing offers both stability and a daily yield for holders. Hashnote, the world’s premier on-chain asset manager, has ensured the security and transparency of USYC by securing the assets in a segregated account at the Bank of New York Mellon. The arrangement is compliant with regulations from the Commodity Futures Trading Commission (CFTC) and Cayman Islands Monetary Authority (CIMA). Users will receive daily price and asset updates via Oracle, further enhancing the transparency of the investment.
Key features of USYC include:
- A dual benefit of low volatility and daily yield disbursement.
- Security backed by U.S. Government-backed securities.
- Instant redemption into yield-bearing tokens for 20% of assets under management (AUM).
- T+0 redemption for fiat currency.
Luuk Strijers, CEO of Deribit, stated, “By offering USYC as yield-bearing cross-margin collateral, Deribit is providing users with the ability to choose collateral that generates passive returns while leveraging the exchange. Adding USYC to our collateral options is another step in our ongoing efforts to help traders manage risk effectively when trading derivatives.”
With the integration of USYC, traders will have the ability to use it as collateral for trading popular cryptocurrencies such as BTC, ETH, USDC, and USDT on Deribit. This addition aims to increase capital efficiency within the derivatives market, allowing users to earn passively through the use of yield-bearing collateral.
To withdraw USYC from the Deribit platform, users must transfer it to a wallet that has been verified and whitelisted by Hashnote, which involves undergoing a rigorous know-your-customer (KYC) process to ensure security and compliance.
Leo Mizuhara, founder and CEO of Hashnote, expressed enthusiasm about the launch, stating, “Adding USYC to Deribit sets a new standard for capital efficiency in the market, combining the stability of U.S. Government-backed assets with the yield generation that traders demand on-chain. This latest offering from Deribit represents a significant advancement in providing secure, yield-generating, and fast-moving on-chain collateral for derivatives trading.”
The introduction of USYC marks a notable development in the digital asset trading landscape, as it aligns with the increasing demand for secure and yield-bearing financial instruments in the cryptocurrency space. As traders seek innovative ways to optimise their strategies, USYC presents a compelling option for those engaging in derivatives trading on the Deribit platform. For additional information, visit: https://www.deribit.com
