# Underlying Strategies

#### **Principles & Mandate**

Yuzu Money’s (Alpha & Prime) strategies are:

* **100% onchain and verifiable** via [Accountable dashboard](https://yuzu.accountable.capital/)
* Bound by the [Asset Whitelist](https://app.yuzu.money/asset-whitelist) 
* Prioritizing capital preservation over yield
* \[Yuzu Alpha] Tranched based protection (Overcollateralized yzUSD senior tranche supported by yzPP junior tranche and Reserve Fund)

{% hint style="info" %}
*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*](https://yuzu.accountable.capital/) *(Strategy Breakdown section).*
{% endhint %}

***

#### **Strategy Buckets**

At a high level, Yuzu Alpha and Prime's backing strategies are as per the following:

| Strategy Buckets                                 | Yuzu Alpha | Yuzu Prime |
| ------------------------------------------------ | ---------- | ---------- |
| 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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