> For the complete documentation index, see [llms.txt](https://docs.hermetica.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hermetica.fi/hbtc/how-it-works/yield/basis.md).

# Basis

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

<figure><img src="/files/zbtbIZawb26aqkMe5Cnp" alt=""><figcaption></figcaption></figure>

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

{% hint style="info" %}
*For additional details, see the* [*USDh yield mechanism documentation*](/usdh/how-it-works/yield.md)*.*
{% 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.

{% hint style="success" %}

## 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*](/usdh/how-it-works/backing.md)*.*
{% endhint %}

{% hint style="info" %}

## 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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