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Huam generates yield primarily from two sources:
  1. DEX Trading Fees: The protocol provides liquidity to decentralized exchanges (like Uniswap or Aerodrome), earning a share of every trade.
  2. Funding Rates: To hedge the market exposure of these positions, the protocol holds short positions in perpetual futures. When funding rates are positive, these shorts earn payments from long traders.
  • USDhm is the stablecoin. It is designed for payments and transfers. It does not earn yield but is backed 1:1 by USDC in the secure Minter contract, with zero exposure to strategy risks.
  • sUSDhm is the staked version of USDhm. It is an investment token that represents a share of the protocol’s trading portfolio. It earns yield but carries the risks associated with the trading strategy.
Most yield-bearing stablecoins derive returns from basis arbitrage (funding rates) or off-chain assets (T-bills, money markets). Huam sources yield from DEX LP fees—a higher but more variable yield source. The tradeoff is increased complexity in position management and hedging, which the protocol handles automatically.
USDhm is backed 1:1 by USDC held specifically in the Minter contract. This capital is isolated and never deployed into trading strategies. Because any user can redeem USDhm for USDC 1:1 (minus a small fee), arbitrageurs naturally keep the market price close to $1.00.
  • Minting: Restricted to whitelisted market makers to ensure controlled growth.
  • Redemption: Open to everyone. Any user holding USDhm can redeem it directly with the protocol for USDC.
  • Secondary Market: Anyone can buy or sell USDhm on decentralized exchanges (DEXs) without interacting with the protocol directly.
All LP positions on DEXs, hedge positions on perpetual exchanges are verifiable onchain. The Collector and Adaptor contracts hold protocol assets directly—users can inspect positions, collateral levels, and historical performance at any time. Exchange margin balances used for hedging are held through OES (Off-Exchange Settlement) providers, keeping assets in custody while delegating trading access to exchanges.
Yes. Staking involves converting your USDC-backed stablecoin into a share of an active trading portfolio. While the strategy is hedged to be delta-neutral, risks such as extreme volatility (where hedging costs exceed fees) or prolonged negative funding rates can lead to drawdowns.However, Huam is designed with a Reward Manager that acts as a protocol-managed junior tranche. This buffer consists of retained protocol earnings and unallocated yield, which is used to absorb initial losses and volatility. Stakers only experience a reduction in the sUSDhm exchange rate if these protection layers are completely exhausted.
There is a 7-day cooldown period for unstaking sUSDhm. When you request to unstake, your assets enter a queue. This delay allows the protocol to orderly unwind complex trading positions and bridge funds back from other chains without incurring high slippage costs. After 7 days, you can claim your USDhm. Redemptions from USDhm to USDC are instant.
Huam is currently in its MVP phase. Smart contracts have not yet been fully audited. Users should exercise caution and understand that interacting with the protocol at this stage involves significant smart contract risk.