> ## Documentation Index
> Fetch the complete documentation index at: https://docs.huam.io/llms.txt
> Use this file to discover all available pages before exploring further.

# What is Huam

> Introduction to the Huam protocol and its core components

Huam is a yield-bearing stablecoin protocol built on hedged DEX liquidity provision.

Huam systematizes liquidity provision and derivatives hedging within a structured stablecoin framework, enabling access to high-return onchain strategies without direct management of LP positions or hedge parameters.

## Key Properties

| Attribute                | Description                                                                                                                                                                                                                                             |
| :----------------------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **High Return**          | Huam captures DEX trading fees, one of the most profitable and inherently volatile yield sources in DeFi. The strategy offers higher return potential relative to funding-rate or RWA-based models, with performance driven by market trading activity. |
| **Collateral Isolation** | USDhm remains backed 1:1 by USDC held separately from strategy capital. Strategy losses do not affect collateral backing unstaked USDhm or redemption availability.                                                                                     |
| **Risk Management**      | Huam applies systematic hedging to liquidity positions to mitigate directional exposure and reduce impermanent loss impact. Risk controls are embedded directly into protocol execution logic.                                                          |
| **Transparency**         | Liquidity positions, hedge exposure, reserves, and performance metrics remain verifiable onchain in real time.                                                                                                                                          |

## Core Components

Huam operates through a dual-token architecture separating stablecoin backing from yield exposure:

* **USDhm** is Huam’s stablecoin. USDhm is mintable and redeemable 1:1 with USDC. Unstaked USDhm remains fully backed by USDC held in the Minter contract and is never deployed into yield strategies.

* **sUSDhm** is the yield-bearing token built on the ERC-4626 vault standard. Staking USDhm converts stable collateral into strategy exposure. sUSDhm reflects realized strategy performance and may appreciate or depreciate depending on returns.

The dual-token structure maintains strict separation between stablecoin collateral and strategy capital, preserving redemption integrity while enabling performance exposure through staking.