Skip to main content
USDhm Dual Token System USDhm is a synthetic dollar backed 1:1 by USDC. It serves as the base unit of account within Huam and the entry point to the protocol’s yield strategies. USDhm is not a yield-bearing token. Users who hold USDhm without staking maintain full USDC backing with zero exposure to strategy performance. The peg holds regardless of whether LP positions gain or lose. To earn yield, users stake USDhm to receive sUSDhm.

​
Minting

Approved users deposit USDC to mint USDhm at a 1:1 ratio. The collateral is held in the Minter contract until the corresponding USDhm is staked. Minting is currently restricted to whitelisted addresses. Non-whitelisted users can acquire USDhm on secondary markets.

​
Redeeming

USDhm can be redeemed for USDC at any time at 1:1, minus a 0.1% fee. This fee covers operational costs of maintaining the backing infrastructure. USDC backing unstaked USDhm remains in the Minter contract at all times, ensuring redemption availability independent of strategy positions.

​
Peg Mechanism

USDhm maintains its peg through arbitrage incentives:
  • USDhm < $1: Arbitrageurs buy USDhm on secondary markets and redeem for $1 of USDC, pocketing the difference.
  • USDhm > $1: Approved minters create new USDhm at $1 and sell at market price.
These incentives naturally push USDhm toward parity with USDC.