Ever wondered how a stablecoin could generate actual yield while staying stable?

There's this DeFi protocol called Solstice Finance doing something pretty clever. They've created $USX—a stablecoin that's delta-neutral, meaning it's not exposed to price swings. How? By backing it entirely with hedged perpetual futures positions, mostly BTC and ETH.

Here's where it gets interesting: those hedged positions generate funding rates from the perps market. Instead of pocketing everything, Solstice routes that funding yield straight to $USX holders and people who deposit into their YieldVault.

So you're basically holding a stable asset that earns from derivatives market mechanics without taking directional risk. The protocol handles the hedging complexity behind the scenes—you just see the yield flowing in. It's one of those setups where traditional finance meets on-chain innovation, turning perpetual futures funding into passive income for stablecoin users.