We have seen fiat-backed stablecoins and cryptocurrency-collateralized stablecoins. However, Aegis has a different approach: a Bitcoin-backed stablecoin.
The following are its bold design aspects and possible reasons for success.
Most stablecoins today rely on a centralized system, which is what Bitcoin was designed to avoid:
Fiat Custody
Bank Settlement
Regulatory Constraints
Aegis has adopted a different strategy, choosing to build its system around Bitcoin rather than banks.
Aegis has named its stablecoin YUSD:
Pegged to 1 dollar price
Supported by Bitcoin collateral
Maintain stability by shorting perpetual contracts
No need for an oracle, no reserve of non-fiat currency, no third-party intermediaries.
YUSD can only be minted when stablecoins such as USDT, USDC, or DAI are deposited into the Aegis Mint smart contract.
Once verified, YUSD will be generated, and the corresponding collateral will be transferred to a secure custody vault.
No off-chain minting switch, no human intervention, everything is controlled solely by smart contract logic.
So, how does Aegis achieve end-to-end operation?
You can use funds to mint or exchange (on-chain or decentralized exchange) to obtain YUSD.
Aegis uses these funds to purchase BTC
Hedge against price volatility risk by opening short perpetual contracts
Earn funding rate income from short positions
Profit Distribution: Part injected into the insurance pool, part distributed to YUSD holders.
This is the circulation mechanism of YUSD.
But where do these profits come from?
When Aegis shorts the Bitcoin perpetual contract, it profits by receiving the funding rate paid by traders with long positions.
As long as there is demand for long positions, these fees will be charged three times a day.
This is neither staking nor inflation.
This is how the pressure from the opposing side is converted into profit.
Aegis will not require you to do anything extra.
Hold YUSD → Earn fees with Aegis → Snapshot records shares → Rewards generated → Claim through the APP
Look, the profits come like a strong wind.
The construction of Aegis is designed to ensure safety and reliability, independently avoiding centralized risks and bypassing common single points of failure:
No fiat currency support
No USDC reserves
No oracle dependency
Limited to Bitcoin, collateral hedging processing, off-exchange holding, real-time monitoring.
No profit model is perfect, especially models linked to funding rates. So, what would happen if the funding rate turned negative?
Aegis has established an insurance fund for this.
1-5% of the earnings will be transferred to the insurance fund.
This fund is activated when the funding rate turns negative, increasing the cost of shorting.
Managed by multi-signature smart contracts
The subsequent control will be transferred to Aegis DAO
Aegis seems to place great emphasis on transparency:
Custodial reserves are verifiable
Exchange Position Disclosure
Read-only API to expose system status
You don't have to guess its internal operating logic, but you can observe the results in real time.
The insurance fund is responsible for managing risks, while the Aaegis points system is responsible for promoting growth. Users can earn points daily through the following methods:
Hold YUSD (earn 15 points for every $1 daily)
Provide liquidity (earn 30 points for every $1 daily, double bonus)
Borrowing through Euler (45 points per day, 3x bonus)
Complete social tasks (50 points per task, 5x bonus)
The product and service are now fully launched on the Ethereum and BNB chains.
In Season 1, all points earnings will receive a 50% bonus reward, allowing early users to receive a higher proportion of AEG token rewards.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
The New Paradigm of Bitcoin Perpetual Hedging: How Aegis Creates the Decentralized Stablecoin YUSD with Short Positions?
Author: Stacy Muur
Compiled by: Tim, PANews
We have seen fiat-backed stablecoins and cryptocurrency-collateralized stablecoins. However, Aegis has a different approach: a Bitcoin-backed stablecoin.
The following are its bold design aspects and possible reasons for success.
Most stablecoins today rely on a centralized system, which is what Bitcoin was designed to avoid:
Aegis has adopted a different strategy, choosing to build its system around Bitcoin rather than banks.
Aegis has named its stablecoin YUSD:
No need for an oracle, no reserve of non-fiat currency, no third-party intermediaries.
YUSD can only be minted when stablecoins such as USDT, USDC, or DAI are deposited into the Aegis Mint smart contract.
Once verified, YUSD will be generated, and the corresponding collateral will be transferred to a secure custody vault.
No off-chain minting switch, no human intervention, everything is controlled solely by smart contract logic.
So, how does Aegis achieve end-to-end operation?
This is the circulation mechanism of YUSD.
But where do these profits come from?
When Aegis shorts the Bitcoin perpetual contract, it profits by receiving the funding rate paid by traders with long positions.
As long as there is demand for long positions, these fees will be charged three times a day.
This is neither staking nor inflation.
This is how the pressure from the opposing side is converted into profit.
Aegis will not require you to do anything extra.
Hold YUSD → Earn fees with Aegis → Snapshot records shares → Rewards generated → Claim through the APP
Look, the profits come like a strong wind.
The construction of Aegis is designed to ensure safety and reliability, independently avoiding centralized risks and bypassing common single points of failure:
Limited to Bitcoin, collateral hedging processing, off-exchange holding, real-time monitoring.
No profit model is perfect, especially models linked to funding rates. So, what would happen if the funding rate turned negative?
Aegis has established an insurance fund for this.
1-5% of the earnings will be transferred to the insurance fund.
Aegis seems to place great emphasis on transparency:
You don't have to guess its internal operating logic, but you can observe the results in real time.
The insurance fund is responsible for managing risks, while the Aaegis points system is responsible for promoting growth. Users can earn points daily through the following methods:
The product and service are now fully launched on the Ethereum and BNB chains.
In Season 1, all points earnings will receive a 50% bonus reward, allowing early users to receive a higher proportion of AEG token rewards.
Excess Rewards: Euler Integrated Unlock Loop Strategy - Deposit YUSD → Earn Points → Borrow Stablecoins → Repeat this process.
This can maximize profits and double points.
Points are not just numbers. Every week, 0.2% of the total AEG supply will be allocated based on your point share.
Don't worry about the delay in airdrop distribution, and there's no need to speculate on the allocation rules.
Transparent and open, everything is proceeding as planned and is directly linked to the use of agreements.
Aegis is an early project aimed at building a stablecoin that does not rely on fiat currency, oracle, or permissioned collateral.
It is still uncertain whether the model remains effective in volatile markets or if it can scale in real-world use cases.
But this is one of the clearest experiments to date in the design of Bitcoin-based currencies.