> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hermetica.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# Basis

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

<Frame>
  <img src="https://mintcdn.com/hermeticalabsinc/cr4cicPK4ZdtyX_c/assets/images/hbtc/how-it-works/yield/basis/frame-316125630.png?fit=max&auto=format&n=cr4cicPK4ZdtyX_c&q=85&s=3584050ec89b397501a8655e9575a470" alt="Image for Basis" width="1404" height="790" data-path="assets/images/hbtc/how-it-works/yield/basis/frame-316125630.png" />
</Frame>

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

<Info>
  *For additional details, see the* *[USDh yield mechanism documentation](../../../usdh/how-it-works/yield).*
</Info>

Hermetica’s liquid yield token, sUSDh, accrues daily yield from funding rate payments sourced from Binance, Bybit, OKX, and Bitget.<br />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.

<Check>
  ## Custodian Attestations

  The protocol publishes monthly custodian attestations detailing backing assets and publicly verifiable liabilities.

  *For additional details, see the* *[USDh backing mechanism documentation](../../../usdh/how-it-works/backing).*
</Check>

<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)
</Info>