Underlying Strategies
Principles & Mandate
Yuzu Money’s (Alpha & Prime) strategies are:
100% on-chain and verifiable via Accountable dashboard
Bound by the Asset Whitelist
Prioritizing capital preservation over yield
[DeFi Suite] Tranched based protection (Overcollateralized yzUSD senior tranche supported by yzPP junior tranche and Reserve Fund)
This page explains the main strategy buckets which backing assets are deployed into. A live view of underlying strategies exposure is available on Yuzu Money's Accountable dashboard (Strategy Breakdown section).
Strategy Buckets
At a high level, Yuzu Alpha and Prime's backing strategies are as per the following:
Tokenized U.S. Treasury Bills
Yes
Yes
AAA-rated Collateralized Loan Obligations (CLOs)
Yes
Yes
Overcollateralized Lending
Yes
Yes
Funding Rate Arbitrage
Yes
No
Leveraged Positions
Yes
Yes
(Cross-chain) Stablecoin Arbitrage
Yes
No
1. Tokenized U.S. Treasury Bills
The U.S. Sovereign Rate, fully on-chain with near-instant liquidity. Issued by leading asset managers via Superstate, Securitize, Centrifuge, and others (BUIDL, VBILL, WTGXX, JTRSY).
2. AAA-rated Collateralized Loan Obligations (CLOs)
Senior tranches of collateralized loan obligations. Zero principal loss in their 30+ year history. Tokenized via Superstate, Securitize, Centrifuge, and similar institutional vehicles (e.g., JAAA, STAC).
3. Overcollateralised Lending
Loans managed by Maple Finance / Syrup, strictly secured by high-quality liquid digital assets (BTC, ETH, XRP, etc.). Recourse and KYC'd institutional borrowers only.
4. Funding Rate Arbitrage
Indirectly positioned through platforms such as Ethena, or directly via fully on-chain trading platforms like Hyperliquid. Captures the persistent funding-rate spread.
5. Leveraged Positions
Spread capture on fundamentally backed assets (e.g., USDe/stables) within safe LTV thresholds. Uses fundamental / hardcoded oracles for price marking — eliminating market-driven liquidation risk.
6. (Cross-chain) Stablecoin Arbitrage
Spread capture across a basket of fundamentally backed stablecoins (USDT0, USDC, AUSD, USDG, USD1, USDS, DAI, PYUSD, cUSD, RLUSD, etc.). Sell premiums, buy discounts.
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