What is Tuo
Tuo earns Uniswap V3 trading fees and hedges the price exposure with shorts on Hyperliquid, inside a vault where only the position owner can withdraw.
Tuo is a DeFi platform that does two things with your deposit. It provides concentrated liquidity on Uniswap V3 to earn trading fees, and it holds short perpetual positions on Hyperliquid to offset most of the price exposure that liquidity carries. The aim is a position that earns fees without taking a full directional bet on ETH or BTC.
The idea in three sentences
- Concentrated liquidity earns a high share of a pool's trading fees, but it also means holding the pool's tokens, so it loses value when the token price falls.
- A short perpetual position gains when the token price falls, so it cancels most of that loss.
- Tuo combines the two, sizes the short with a quantitative engine, and reviews the pair every day.
What happens to a deposit
- You deposit any allowlisted token on Arbitrum. The vault converts it to USDC through a DEX aggregator. The USDC actually received becomes your position's basis.
- The vault mints a position NFT to your wallet. The NFT is the position. Whoever holds it is the only address that can withdraw.
- Tuo's keeper deploys the USDC as Uniswap V3 liquidity at ranges prescribed by the engine and sends part of it to Hyperliquid as margin for the short.
- The engine reviews the position once a day and the keeper acts on its signals: resize a hedge, close a range, re-enter a range.
- When you withdraw, the ranges close, the shorts unwind, the margin comes home, and you receive USDC or any allowlisted token.
The full sequence is on the Position lifecycle page.
What Tuo holds, and what it does not
Tuo holds exactly two things.
| Tuo holds | What it means |
|---|---|
| Keeper privileges | The right to reshape a position inside the vault: swap idle balances, mint and burn liquidity ranges, and move hedge margin to the position's Hyperliquid account. Every action is metered and value-floored |
| A 30% performance fee | Charged on realized profit only, at withdrawal. The percentage is a constant in the contract with no setter. Deposited capital is never charged |
Tuo does not hold your position. The keeper cannot send funds anywhere except back to the vault, to Uniswap, to the position's own Hyperliquid account, or to you. There is no admin key that can upgrade the contracts, change the fee, or touch a position. The details are on the Custody model page.
One part of every hedged position sits outside the vault: the margin backing the Hyperliquid short is held at a Tuo-operated account on that venue while the hedge is open. This is a disclosed custody gap, bounded by the contracts and explained in full on the Custody model page. Tuo does not describe itself as fully non-custodial.
Two products
| Product | Shape | Risk label |
|---|---|---|
| Basis Plus Core | Three Uniswap V3 ranges across WETH/USDC and WBTC/USDC, two shorts | Balanced |
| Delta Hedge Standalone | One WBTC/USDC range, one BTC short covering 80% of the BTC exposure | Conservative |
Both accept the same deposit tokens and the same minimum. The return figures shown in the app are backtest targets from the engine's historical simulations, not guarantees. See Products.
Where the strategy lives
The contracts hold no strategy logic. Range selection, hedge sizing and rebalance timing all come from Engine v25, a proprietary quantitative engine that runs off-chain as a service. Its signals reach the vault as ordinary keeper transactions, and the vault checks each one against allowlists, budgets and price floors. The chain's job is not to be right about the strategy. Its job is to make sure that whatever the strategy decides stays inside a perimeter that cannot move customer funds anywhere except back to the owner.
Status
Tuo is in a guarded launch. The first mainnet deployment targets Arbitrum One, positions are capped at 25,000 USDC each, the independent external review of the contracts is pending, and no token exists or is planned. See Guarded launch and Audits.