We are currently building out the infrastructure to support additional strategies to generate yield that are performing well in this environment. This includes strategies like the funding rate arbitrage on RWAs (i.e. tokenized gold) and structured credit yield capture. Our belief is that a blended mix of these strategies should get our depositors to a target yield of 10-15% on their stables.

In a bull market, sitting in stables earning yield is a massive opportunity cost relative to price appreciation. In a bear market, sitting in stables earning yield is not only growing purchasing power, but you'll get a better entry, which amplifies future price appreciation.

Those of you who still here on CT reading these posts... are absolute lunatics. Which is how we know you're one of the "lucky" ones who are GMI.

When you're in a global super cycle, Dips are meant for buying.

The verticals you probably want to be paying close attention to right now: - Hyperliquid - Crypto x AI - Stablecoins + yield protocols - RWA/tokenization - Revenue tokens (i.e. buybacks) If we are in the early stages of the next bull market, it may look different than the last.

We will offer "tap to earn" yield on stablecoins.

Our industry is maturing. DeFi and TradFi are merging into one and we're simply calling it "financial services." The verticals clearly making the leap so far are: - bitcoin - stablecoins - equity infra - tokenization

Funding rate arbitrages on Hyperliquid: Arb ETH/BTC Arb Oil Arb Gold Arb Stocks Arb Commodities The opportunities are endless.

Initially, we were going to run one strategy to generate yield for our stable depositors. Now, we are planning to offer 2-3 yield strategies & allocating dynamically between them. This diversification provides more stable & predictable returns, regardless of the market cycle.

Our team has been fully distributed since day one. We operate from 6 different countries around the world. As we use are using AI more in our day-to-day operations, we find that the digital nature of remote work is giving us an advantage. Intelligence is built into everything.

Points programs are out of favor right now, but we don't think that'll last forever. It's a short-term response to market sentiment from bearish price action. Want to maximize our upcoming points program? - deposit early - go bigger - stay longer = pays better

An important part of our delta-neutral strategy involves something called "looping". This essentially means we use Aave to get leverage on our ETH spot exposure to match our leveraged ETH short on Hyperliquid. Here's how it works: - Stablecoins (like USDC) are deposited into SHRED. - We use part of them to buy wstETH (Lido's staked ETH). - The wstETH goes into Aave as collateral. - We borrow more stablecoins against it. - Those stablecoins get swapped into wstETH and redeposited into Aave. - The cycle repeats until the long position sits at roughly ~2x leverage Why do we do this? Because it's more capital efficient. As mentioned earlier in this post, we need leveraged ETH exposure on the long side to match leveraged ETH shorts on Hyperliquid. The shorts capture the funding rate (where our yield comes from). The long side exists to neutralize the price risk (what it means to be delta-neutral). If ETH drops, the Aave position tightens. When it does, the system reduces leverage or adds collateral before we lose money. Without looping, the same delta-neutral position would need roughly twice the capital.

Quick explainer of our protocol "Health" dashboard. Want even more transparency? Let us know what else you'd like to see so we can add it.

Protocol Health Dashboard: • TVL Over Time (#) • Performance Over Time (%) • Protocol Backing Ratio (%) • Total Users (#) • Yield Generate for Users (%) • Funding Rate Days (pos/neg) More coming soon.

When we launch we will do so with a public points campaign. It's the best way for us to reward our early adopters and kickstart the protocol. Learn more about our Leaderboard now so you're prepared when the time comes.

APR is the raw yearly rate WITHOUT compounding. APY is the effective yearly rate WITH compounding. Or in other words… APR is what the underlying strategy generates. APY is what you earn if you stay invested in SHRED.

We value consistent yields over peak yields.