Delta Hedge Standalone
The conservative product, one wide WBTC/USDC range and one tracked BTC short covering 80% of its delta.
Delta Hedge Standalone (product code 2) is a single WBTC/USDC concentrated liquidity position paired with a BTC perpetual short on Hyperliquid. It is the DynHedge sleeve of Basis Plus Core run on its own: one range, one short, no signal-driven entries or exits.
| Deploys as | 1 Uniswap V3 LP + 1 Hyperliquid short |
| Risk label | Conservative |
| Backtest target return | About 20% net APY (backtest target) |
| Expected drawdown | About 16.4% (backtest target) |
| On-chain policy | 1 open range, up to 90% of basis on the hedge venue |
Composition
| Leg | Venue | Pair | Share of deposit | Range width |
|---|---|---|---|---|
| DynHedge | Uniswap V3 | WBTC/USDC 0.05% | 100% | +/-20% around the entry price |
| BTC hedge | Hyperliquid | BTC perpetual short | Margin drawn from the same deposit | Covers 80% of the range's BTC exposure |
How it behaves
The range is wide, at plus or minus 20% around the price it opens at, so it stays in range through ordinary moves and earns fees for longer than a narrow range would. It is always on: the engine does not wait for a signal to open it, and it re-centres or closes the range only when the price has been outside it for more than two days.
The short follows the live BTC exposure of the range, which shifts as the price moves inside it. The target is 80% of that exposure with 2x leverage. The engine checks coverage daily and resizes the short once it drifts more than 30% away from the target.
Why 80% and not 100%
The short deliberately covers 80% of the range's BTC delta, leaving roughly 20% long BTC exposure in place. This is a design choice of the frozen strategy, not a limitation: a full hedge costs more in funding and rebalancing than the residual exposure is expected to cost, over the backtest period. It also means the product is not market neutral. In a BTC drawdown, about a fifth of the range's BTC exposure is unhedged.
What the vault enforces
- at most 1 open range on the position,
- at most 90% of the position's basis moved to the hedge venue at any one time,
- the range in the allowlisted WBTC/USDC pool, every swap through an allowlisted aggregator.
The 90% hedge cap is higher than Basis Plus Core's 50% because the single short carries the whole hedge for the whole deposit. In practice that means a larger share of this product's capital can sit at the Tuo-operated Hyperliquid account while the hedge is open. Read Custody model before choosing it.
Up to 90% of a Delta Hedge Standalone position's basis may be held as hedge margin at a Tuo-controlled address on Hyperliquid while the hedge is open. That margin is outside the vault's on-chain custody until it is returned. See Counterparty and venue risk.