Long the asset. Short its perpetual. Same size, same moment — what's left is the funding rate, collected continuously and compounded into the share price.
Every deposit splits in two, instantly, and stays split until it's withdrawn.
The vault buys the asset at spot — a plain, fully-collateralized long.
An equal notional short opens on the perpetual. Price risk on both legs offsets.
The funding rate paid between longs and shorts remains — collected every period, compounded into the share.
Perpetuals never expire, so exchanges tie their price to spot with a periodic funding payment. Across most of crypto's history, demand to hold leveraged long exposure has outweighed demand to hold short — so longs pay shorts to stay open. The vault sits, deliberately, on the side being paid.
Funding can rest negative for short stretches. The hedge holds exactly regardless of which way it tilts.
Each period's yield is added to principal before the next period begins. Plotted, the curve is a logarithmic spiral — the same proportion a fern follows as it unfurls, a nautilus as it grows, a seed head as it spins.
Plate ref. — the fiddlehead follows the identical spiral, chamber for chamber.
{{ sp.pair }}
{{ active.pair }}
{{ active.note }}
Funding compounds directly into {{ active.name }}'s share price — no separate reward token to claim.
Every contract governing the hedge has been reviewed line by line before it touched a deposit.
Vault assets are never commingled with operating funds or other strategies.
The spot and perpetual legs are checked against each other continuously, not once a day.
{{ f.a }}
One deposit. Two positions. A single number that only moves one way.
Noted. We'll be in touch.
We onboard in small batches to keep the hedge precise.