# Basis

The basis strategy maintains a delta-neutral position by holding spot Bitcoin while simultaneously shorting Bitcoin perpetual futures. 

<figure><img src="https://2201013687-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fxp26OjT5H1o55M1QMDI4%2Fuploads%2FOjfRfe47ta6ev5m7oSJd%2FFrame%20316125630.png?alt=media&#x26;token=d07194e6-6fd0-42f0-8677-17bc815acab4" alt=""><figcaption></figcaption></figure>

Yield is generated from periodic funding payments paid by perpetual futures traders, which accrue to the strategy.&#x20;

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*For additional details, see the* [*USDh yield mechanism documentation*](https://docs.hermetica.fi/usdh/how-it-works/yield)*.*
{% endhint %}

Hermetica’s liquid yield token, sUSDh, accrues daily yield from funding rate payments sourced from Binance, Bybit, OKX, and Bitget.\
\
Protocol backing assets are custodied with Copper and Ceffu and mirrored to exchanges via off-exchange settlement solutions (ClearLoop and MirrorX). Assets custodied with Copper are held in a bankruptcy-remote English trust structure.

Only **mainnet BTC** is used as collateral asset.

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## Custodian Attestations

The protocol publishes monthly custodian attestations detailing backing assets and publicly verifiable liabilities.&#x20;

*For additional details, see the* [*USDh backing mechanism documentation*](https://docs.hermetica.fi/usdh/how-it-works/backing)*.*
{% endhint %}

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## Transparency Dashboards

The protocol transparency dashboard provides near real-time visibility into system backing, venue allocation, reserve fund status, and historical performance.

*For additional details, see the* [*USDh transparency dashboards*.](https://app.hermetica.fi/dashboard)
{% endhint %}


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