# Introduction
SHRED is a high-yield savings protocol, designed to provide simple returns on stablecoins. \ At its core, SHRED transforms complex delta-neutral arbitrage strategies into a one-click savings experience for users on Ethereum and HyperEVM. By depositing USDC (and eventually USDT), depositors gain access to up to 15% APY. It powered by real yield from staking on Ethereum and perpetual futures DEX funding rates on Hyperliquid. The importance of SHRED lies in its ability to democratize one of the most effective yield strategies in finance. In traditional savings accounts, capital underperforms the inflation (\~3%) and debasement rate (\~8%). In DeFi, most yield opportunities are either variable, unsustainable, or dependent on inflationary token emissions. SHRED fills this gap with a professional-grade, transparent savings protocol for the internet of money. Our vision is to become the stablecoin savings layer for the crypto the industry. Over time, we intend have vaults integrated on all the major DeFi protocols and FinTech platforms. As well as, for shUSD, our future yield-bearing receipt token, to become a core piece of DeFi collateral. Ultimately, when users want stable and predictable, high-yield savings, they come to SHRED. **Roadmap**
# Yield & Strategy The yield generated by SHRED comes directly from funding fees paid by traders on perpetual futures exchanges like Hyperliquid. These funding payments are real, market-driven revenues — not emissions or subsidies. \ \ SHRED targets a stable 10-15% APY\* on stablecoins such as USDC (and eventually USDT). To achieve this, the protocol employs a delta-neutral arbitrage strategy. More detailed information on the strategy mechanics can be found below. To smooth out fluctuations, SHRED maintains a buffer fund. This reserve absorbs short-term dips in funding rates, helping users receive stable yields. While prolonged negative funding rate environments could lower yields, such periods have historically been rare and temporary.\ \ *\*Note - The target 15% APY, which we call the watermark, is subject to change in the future due to market conditions such as prolonged negative funding rates during a bear market.* #### **The Trading Strategy** The strategy is "delta-neutral," meaning it holds offsetting long and short positions so that ETH price movements don't cause profits or losses. Instead, the strategy earns yield from other sources.
**Yield and Cost Breakdown:** | **Side** | **Yields** | **Costs** | | ------------------------------------- | ----------------------------------------------------- | ------------------------------------- | |

Long
(Aave on Ethereum)

| wstETH staking yield + Aave supply interest on wstETH | USDC borrow rate on Aave | |

Short
(Hypercore Perp DEX)

| Funding rate payments (when positive) | Funding rate payments (when negative) | The funding rate on perpetual futures fluctuates based on market conditions. When more traders are long, shorts get paid (positive yield for us). When more traders are short, longs get paid (a cost for us). **Rebalancing** The strategy requires periodic rebalancing to maintain healthy positions and avoid liquidation. There are two types: USDC Rebalancing (no cost, preferred) This moves USDC between the two sides without changing position sizes: | **If ETH price...** | **What happens** | | ------------------- | ------------------------------------------- | | Goes up | Long side gains value, short side loses | | Goes down | Short side gains PnL, long side loses value | This keeps both sides healthy and away from liquidation, with no trading fees. **Exposure Rebalancing (has costs)** This actually changes the size of the positions. It's needed when: New deposits increase total NAV (need bigger positions) Withdrawals decrease total NAV (need smaller positions) Large price moves require resetting the hedge Exposure rebalancing incurs costs like spot swap fees, slippage, and perpetual trading fees, so we minimize how often it's needed. **Triggers** Rebalancing is based on LPM thresholds (how close to liquidation), not fixed time intervals. **Yield Determination** The advertised yield rate is determined through: **Backtesting** 1. Running the strategy against historical data to estimate returns. 2. Live Testing ("Proof of Profit") — Running with real capital to validate performance. 3. Conservative Launch — Starting with a rate we're confident we can sustain. If market conditions change significantly (e.g., sustained below optimal funding rates), the target rate may be adjusted downward. A buffer fund (\~1% of total value) helps smooth short-term volatility. # Deposit & Withdraw ### Deposit 1. Connect your wallet 2. Select an amount of USDC or USDT, and approve the transaction 3. Once confirmed, funds are automatically routed into SHRED's strategy Your full deposit amount is reflected in your balance immediately and begins earning yield right away. There are no deposit fees — see Costs & Fees for details. In the early days, SHRED enforces TVL caps to ensure the strategy scales responsibly. These caps protect the system from capacity constraints and are gradually raised as strategy limits expand. ### Withdraw 1. Connect your wallet 2. Click the "Withdraw" button 3. Enter the amount and confirm the transaction 4. Receive your funds — either instantly or after a short processing period #### Instant vs queued withdrawals The vault maintains a pool of liquid USDC to service withdrawals on demand. When you request a withdrawal, the app checks the available funds in the smart contract: * **If enough USDC is available**, your withdrawal is processed instantly. The estimated withdrawal time in the app will show as immediate. * **If the vault needs to free up capital**, your withdrawal is queued while the strategy unwinds positions to generate the required USDC. This can take up to 48 hours. Once your withdrawal is ready, you'll be able to claim it from the app. Queued withdrawals are most likely during periods of high withdrawal volume, when many users are exiting at the same time and the vault's liquid reserves are temporarily depleted. #### When does yield stop accruing? Your shUSD is burned at the moment you submit your withdrawal request. This means yield stops accruing immediately when you withdraw — not when you claim. There is no benefit to delaying your claim once it's ready. #### Price impact on withdrawal A small price impact cost is deducted from your withdrawal amount. This covers the real costs of entering and exiting the strategy (swaps, trading fees, bridging, etc.) and is not a fee taken by SHRED. The rate is dynamic and shown in the app before you confirm. See Costs & Fees for a full breakdown. #### Good to know * Your withdrawal amount is calculated based on your balance and the price impact rate shown at the time of withdrawal * The protocol currently operates natively on Ethereum L1 with additional HyperEVM support, with plans to expand to additional chains in the future * For a deeper look at how deposits and withdrawals work under the hood, see the Technology page # Costs & Fees SHRED's fee structure is designed to align incentives between the protocol and its users. There are no deposit fees, no withdrawal fees, and no management fees. Instead, yield is distributed as follows: * \~12% APY target from strategy * \~10% APY paid to users * \~2%+ APY to buffer fund + incentives + costs This model ensures SHRED remains sustainable, transparent, and aligned with long-term user outcomes. | Fee Type | Amount | Notes | | -------------- | --------------- | ---------------------------------------------------------------------------------------- | | Deposit fee | 0% | No fee to deposit | | Withdrawal fee | 0% | No fee charged by SHRED | | Price impact | Dynamic (\~1%+) | Covers strategy entry/exit costs; may include a buffer adjustment. See below for details | | Management fee | None | No ongoing percentage taken from deposits | *** ### Price Impact Price impact is a small cost applied to withdrawals that reflects the real expenses of entering and exiting the vault's underlying strategy. It is **not a fee collected by SHRED** — it covers the actual costs incurred when deploying and unwinding positions across the strategy's execution venues. #### Why does price impact exist? When you deposit USDC, the vault deploys it into a delta-neutral strategy involving spot positions, lending, and perpetual futures. Each of these steps has associated costs: token swaps, trading fees, bridge fees, and spread costs. Rather than charging these costs upfront, the vault defers them to withdrawal. This means your full deposit is reflected in your balance immediately — and importantly, you begin earning yield on your entire deposit amount from day one. If you deposit 100 USDC, you earn yield on 100 USDC, not on a reduced amount after fees. This design maximises your earning potential from the moment you deposit. At withdrawal, the price impact is applied to cover both the original cost of entering the strategy and the cost of exiting it. #### How is it calculated? The price impact rate has two components: **Base component** — This covers the standard cost of entering and exiting the strategy. It's calculated using a weighted moving average of recent execution costs and typically sits around \~1%. Think of this as the "normal" cost of deploying and unwinding positions in the strategy. **Dynamic component** — If the vault's internal safety buffer is below its target level, an additional adjustment increases the price impact. This is normal and expected. It can occur during periods of growth when new deposits haven't yet accumulated sufficient buffer, or during adverse market conditions when the buffer needs additional protection. The dynamic component automatically decreases as the buffer recovers toward its target. It exists to protect the vault's solvency and ensure all depositors are treated fairly. #### Key details * Price impact is applied only on withdrawal, never on deposit * The rate is updated periodically and stored on-chain * The rate shown in the app at the time of withdrawal is the rate you pay #### What does this mean for your returns? Your balance grows continuously based on the vault's yield rate. When you withdraw, the price impact is deducted from your withdrawal amount. Under normal market conditions, a few weeks of yield will typically more than offset the base price impact cost. When the dynamic component is elevated, the breakeven period may be longer. Importantly, an elevated dynamic component only affects you at the moment of withdrawal. If you remain in the vault, your balance continues to grow at the current yield rate with no impact. Once conditions normalise, the dynamic component returns to its base level and withdrawals proceed at the standard rate. If you notice the price impact is above its usual level, it may be worth waiting for it to return to normal before withdrawing. For more information on how SHRED manages risk, see our Risks page. # Performance Users can track their deposits and accrued yield in real time through SHRED’s dashboard. The interface is deliberately simple, designed for retail savers while retaining the transparency expected by power users and institutions. What sets SHRED apart is a combination of predictable returns, cross-chain scalability, and professional credibility. Competing protocols often suffer from low capacity, high fees, or reliance on synthetic assets. SHRED, by contrast, delivers a target 10-15% APY on real stablecoins, managed by a former leading Cosmos team with a impressive track record of zero hacks and zero bad debt. Optimal performance is achieved by remaining invested long-term. Frequent deposits and withdrawals trigger rebalancing costs, reducing net returns. SHRED is designed as a hands-off, compounding savings protocol — not a high-frequency trading strategy. # Technology #### **Summary** SHRED’s backend combines audited smart contracts with automated monitoring systems. Strategies are continuously managed by scripts that monitor position health, balance long/short exposures, and execute rebalancing when required. Alerts are sent if transactions fail or infrastructure components (such as bridges) experience downtime. Ethereum and Hyperliquid were chosen as the initial execution layers due to their deep perp liquidity, fast infrastructure, and ability to support funding rate arbitrage at scale. Over time, SHRED will extend across Solana and other ecosystems, all unified by a single frontend and cross-chain bridging layer. The development team previously built the leading money market and perp DEX on Cosmos with a track record of managing over $300m TVL at its peak - having worked together for over 4 years across multiple chains. The same practices in risk management and capital efficiency underpin SHRED. **Key Terms:** | **Term** | **Definition** | | ---------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | shUSD | A token users receive when they deposit. It represents their share of the pool and grows in value as yield accrues. | | Delta-Neutral | A strategy where long and short positions offset each other, so the protocol doesn't profit or lose from price movements—only from yield sources like funding rates. | |

LPM (Liquidation

Price Movement)

| How far the price would need to move before a position gets liquidated. Higher is safer. | | Price Impact | A small variable fee deducted from withdrawals to cover the cost of unwinding positions. | | Funding Rate | Periodic payments between traders holding long vs short positions in perpetual futures markets. | #### **System Architecture** Deployed Contracts (Ethereum Mainnet) The protocol's smart contracts are deployed on Ethereum (Chain ID: 1): | **Contract** | **Address** | **Purpose** | | ------------ | ------------- | ------------------------------------------ | | ShredVault | TBC at launch | Holds user deposits and manages accounting | | shUSD Token | TBC at launch | The yield-bearing token users receive | **How the System Fits Together** The diagram below shows how funds flow through the system:
**Component Overview:** | **Component** | **What It Does** | | ------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | | ShredVault Contract | The on-chain smart contract that holds user USDC deposits. It tracks balances, mints/burns shUSD tokens, and manages the withdrawal queue. | | shUSD Token | A standard token that users can hold, transfer, or use in other protocols. Only the vault can create or destroy these tokens. | | Fireblocks | An institutional custody service that securely holds the keys for the strategy wallets. Uses MPC (multi-party computation) so no single person controls the keys. | | Aave on Ethereum | A lending protocol where we hold the "long" side of our strategy using wstETH (wrapped staked ETH). | | HyperCore | A perpetual futures exchange where we hold the "short" side of our strategy. | #### **How Deposits and Withdrawals Work** **Depositing** When a user deposits USDC:
The deposit happens instantly in one transaction. The amount of shUSD received depends on the current exchange rate. As yield accrues, each shUSD becomes worth more USDC over time. **Withdrawing** Withdrawals work in one of two ways, depending on how much USDC is available in the vault:
**Key points** The user's shUSD is burned immediately when they request a withdrawal, so they stop earning yield at that moment. A small variable "price impact" fee is deducted to cover the cost of unwinding positions. Most withdrawals complete instantly if the vault has enough USDC on hand. Larger withdrawals may take up to 48 hours while positions are unwound. **How Yield Works** The vault tracks a "liquidity index" that increases over time based on the interest rate set by the admin. This is similar to how Aave's aTokens work—the shUSD token doesn't change in quantity, but each token becomes worth more USDC. Important: The yield rate is variable and not guaranteed. It's set based on actual strategy performance and may be adjusted if market conditions change. #### **Roles & Permissions** **Smart Contract Roles** The smart contract uses role-based access control. Each role has specific powers: | **Role** | **Who Holds It** | **What They Can Do** | | ------------- | ------------------------------------------ | ------------------------------------------------------------------------------------- | | Default Admin |

Fireblocks (quorum

required)

| Upgrade the contract code; grant or revoke other roles | | Admin |

Fireblocks (quorum

required)

| Change interest rate, deposit limits, price impact; pause the protocol in emergencies | | Operator |

Fireblocks (quorum

required)

| Fulfill pending withdrawals; move USDC to the approved strategy address | | Users | Anyone | Deposit, withdraw, claim, and transfer shUSD tokens | **Off-Chain Strategy Roles** The off-chain strategy that manages positions on Ethereum and Hyperliquid has its own permission structure: | **Role** | **What They Can Do** | | ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------- | | Strategy Executor Wallet | Proposes transactions to the Fireblocks vault (e.g., rebalancing, position adjustments) | | Fireblocks Policy Engine | Enforces rules about what transactions are allowed (spending limits, approved addresses, etc.) | | Guardian Network | A Guardian Network built on top of Fireblocks that verifies strategy logic and nyst approve before any strategy transactions execute. | This multi-layer approval process means no single person or system can unilaterally move funds. **Security Measures:** | **Measure** | **Status** | | ---------------------- | ------------------------------------------------------------------------------------------------ | | OpenZeppelin contracts | Using industry-standard, audited libraries for access control, pause-ability, and safe transfers | | Reentrancy protection | All functions that move funds are protected against reentrancy attacks | | Fireblocks MPC custody | Keys are distributed across multiple parties; no single point of compromise | | Guardian approval | Multiple independent signers must approve strategy transactions | | Deposit insurance | None — users bear full risk of any losses | **Protocol Limits:** | **Parameter** | **Value** | **Can Be Changed?** | | ---------------------- | ------------------------------------------------------ | --------------------- | | Maximum APY | 100% | No (hard-coded limit) | | Current target APY | \~10-15% | Yes (by Admin role) | | Maximum total deposits | 10M initial cap (increases systematically - 20M, etc.) | Yes (by Admin role) | | Minimum deposit | 10 USDC | Yes (by Admin role) | # Custody SHRED uses Fireblocks, an institutional-grade digital asset custody platform trusted by leading exchanges and funds, to securely hold and move user assets. All funds are stored in Fireblocks Vault accounts protected by multi-party computation (MPC), eliminating single private-key risk by distributing signing authority across multiple parties. Every transaction passes through a strict rule engine and allow-listed destinations, meaning assets can only move to pre-approved wallets, exchanges, or contracts. \ \ Beyond Fireblocks’ native safeguards, SHRED adds an independent guardian layer that performs automated cross-checks through multiple systems before any transfer is finalized, creating an extra institutional-grade validation step. For users, none of this adds friction. When you deposit into SHRED, your funds are custodied through Fireblocks and governed by multiple layers of automated, policy-based security before a single coin moves. # Tokenomics SHRED will launch a points program at its public release in Q1 2026. Users will earn points based on being early, deposit size, duration, and community participation. These points will convert into SHRED tokens at TGE. The token itself has multiple roles: boosting yield and variable rewards. A portion of protocol revenue will be used to buy and burn SHRED, ensuring scarcity and value accrual over time. Early depositors and the most engaged community supporters will enjoy multipliers and unique privileges during this rollout. # Risks No yield-generating strategy is risk-free. Anyone who claims otherwise is either uninformed or dishonest. SHRED does not promise to eliminate risk. We promise to identify it, disclose it transparently, and reduce it through deliberate design choices. This page explains the risks you take when depositing into SHRED, what we do to mitigate them, and what residual exposure remains. #### **Risk Summary** | **Category** | **Mitigation** | **Residual Exposure** | | ------------------------- | ------------------------------------------------------------------------- | ---------------------------------------- | | Strategy & Yield | Buffer fund absorbs volatility; dynamic target rate adjusts to conditions | Yield depends on market conditions | | Infrastructure & Protocol | Battle-tested venues; audited contracts; MPC custody | Third-party failures outside our control | | Operational | Multi-party authorization; role separation; fail-safe defaults | Human error remains possible | | Liquidity & Withdrawal | TVL caps; liquidity buffers; orderly withdrawal queues | Extreme conditions may delay withdrawals | #### **Strategy & Yield Risk** SHRED generates yield through funding rate arbitrage on perpetual futures, combined with returns from staking and money market lending. This is not a fixed-income product. Returns depend on market conditions. | **Risk** | **Description** | **How It's Managed** | | ----------------------- | ---------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | | Negative funding rates | If funding rates go negative, the short side costs money instead of earning | Buffer fund absorbs short-term dips; target rate reduced if sustained | | Liquidation | Extreme price moves could liquidate leveraged positions on either leg | Liquidation price movement (LPM) monitoring; automatic rebalancing at conservative thresholds | | Execution slippage | Rebalancing during volatile conditions may incur unfavorable prices | Threshold-based rebalancing; capital-only adjustments where possible; slippage controls | | Under-collateralization | Prolonged underperformance could leave protocol liabilities exceeding assets | Buffer fund reserves; dynamic target rate adjustment; withdrawal fees to prevent cost externalization | **How the Buffer Fund Works** The buffer fund is a protocol-level reserve that smooths returns for depositors. When strategy performance exceeds the target rate, excess yield flows into the buffer. When performance falls short, the buffer covers the gap. If market conditions deteriorate for a sustained period and the buffer is strained, we adjust the target rate downward to preserve fund health. If conditions improve, we adjust upward. In extreme scenarios where adverse conditions persist and the buffer is depleted, the protocol may become undercollateralized relative to outstanding shUSD liabilities. This represents risk to both yield continuity and, in severe cases, depositor principal. #### Infrastructure & Protocol Risk SHRED depends on external infrastructure and deploys its own smart contracts. Any of these systems can fail. | **Risk** | **Description** | **How It's Managed** | | ------------------- | ------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------- | | Venue failure | Hyperliquid, Ethereum, or Aave could experience exploits, halts, or downtime | Only battle-tested protocols with significant TVL; real-time monitoring; ability to pause and unwind | | Bridge risk | USDC transfers between Ethereum and HyperCore rely on bridging infrastructure | Circle CCTP only (burn-and-mint, not liquidity bridge); native USDC only; bridge status monitoring | | Smart contract bugs | Vulnerabilities in SHRED vault or shUSD contracts could result in loss of funds | OpenZeppelin primitives; independent third-party audits; minimal contract surface area | | USDC depeg | USDC could lose its $1 peg temporarily or permanently | No direct mitigation; risk disclosed transparently; users accept stablecoin counterparty risk | | wstETH depeg | wstETH could trade at a discount to ETH, increasing liquidation risk on the long leg | High-quality collateral with deep liquidity; conservative leverage limits | **Note on Bridging** The strategy currently uses Circle's CCTP (Cross-Chain Transfer Protocol) to move USDC between Ethereum and HyperCore. CCTP is a burn-and-mint mechanism, meaning USDC is destroyed on the source chain and minted on the destination chain. This avoids the liquidity pool risks of traditional bridges. If the protocol later expands to use HyperCore for spot trading or leverage, reliance on bridging infrastructure would increase. #### **Operational Risk** Running a yield strategy requires custody infrastructure, execution systems, monitoring services, and administrative controls. Each introduces operational risk. | **Risk** | **Description** | **How It's Managed** | | ------------------- | ------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | | Key compromise | Unauthorized access to custody keys | Fireblocks MPC custody; no single-key control; allowlists restrict fund destinations | | Upgrade errors | A bad contract upgrade breaks functionality or introduces vulnerabilities | Multi-party approval required; testing and review before execution | | Governance failures | Administrative actions introduce errors or are exploited | Role separation (admin, operator, guardian); controlled upgrade paths | | Service downtime | Off-chain monitoring or execution systems go offline | Redundant monitoring across independent services; fail-safe defaults pause rather than force execution; manual override capability | Custodial infrastructure remains a centralized dependency. While MPC eliminates single points of failure for keys, the custody provider itself represents operational risk that cannot be fully decentralized. #### **Liquidity & Withdrawal Risk** SHRED aims to offer withdrawals without extended lockups. However, the strategy requires position management, and large or concurrent withdrawal requests may require unwinding positions. | **Risk** | **Description** | **How It's Managed** | | -------------------- | -------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | | Withdrawal delays | Large requests may take time to process if positions must be unwound | Liquidity buffers for routine withdrawals; orderly queues for large exits | | Market impact | Unwinding positions during stress may move markets against remaining depositors | TVL caps relative to market depth; phased processing of large withdrawals | | Cost externalization | Withdrawing users could leave execution costs for remaining depositors to absorb | Dynamic withdrawal fee covers slippage, market impact, and rebalancing costs | **Why Withdrawal Fees Exist** When a user withdraws, SHRED may need to unwind positions, incurring real costs: slippage, market impact, gas, and rebalancing. Without a fee, these costs would be absorbed by remaining depositors, effectively subsidizing exits. The withdrawal fee ensures that exiting users bear their own execution costs. The fee is dynamic and may change based on market conditions. Our long-term goal is to minimize this fee as liquidity, integrations, and strategy efficiency improve. #### **Who Bears What Risk** Clear accountability matters. Here is how risk is distributed: | **Risk Type** | **Borne By** | | ------------------------------------------------ | ------------------------------------------ | | Strategy underperformance (lower yield) | Users | | Strategy undercollateralization (principal loss) | Users | | Smart contract vulnerabilities | Users (financial), Protocol (reputational) | | Venue failures (Ethereum, Aave, Hyperliquid) | Users | | Bridge failures (CCTP) | Users | | USDC or wstETH depeg | Users | | Withdrawal delays | Users (opportunity cost) | | Operational errors | Users (financial), Protocol (reputational) | #### **The Bottom Line** Risk management is not a checkbox. It is an ongoing process that evolves as market conditions, infrastructure, and strategy design change. This page represents our best-faith effort to describe the risks inherent in the system, the mechanisms we use to reduce them, and the trade-offs involved. There is always the possibility that certain risks are not fully identified, that mitigations prove insufficient under unforeseen conditions, or that residual risks are underestimated. Evaluate SHRED not on the absence of risk, but on how risks are acknowledged, bounded, and actively managed. If you have questions about anything on this page, ask us. Transparency is not a marketing claim. It is how we operate.
# Audit [Security Audit Report](https://github.com/pashov/audits/blob/master/team/pdf/Shred-security-review_2026-01-31.pdf) [Pashov](https://www.pashov.com/) (Auditor) [Announcement on X](https://x.com/PashovAuditGrp/status/2021184521765376413?s=20) # Points Campaign The SHRED points program is designed to reward early adopters of our protocol. Earn points by depositing stablecoins and accruing yield over time. We'll automatically track and calculate your points daily on your points dashboard - no manual claims required. The number of points you earn may determine your allocation in future distributions. #### **How It Works** Deposit USDC into the SHRED vault. You earn points based on your deposit size, how long you hold, the current TVL tier and number of people you refer. Base Rate: 1 point per $1 deposited per day #### **Timeline** Season 1: Starts at our public launch in Q1 and ends at the team's discretion likely Q3/4 2026. #### **Points Calculation** Points Earned = Deposit Amount × Days × Multiplier #### **Size Multipliers** | **Deposit Caps** | **Multiplier** | | ---------------- | -------------- | | First $10M | 10x | | $10M - $50M | 6x | | $50M - $150M | 4x | | $150M - $350M | 2x | | $350M+ | 1x | Multipliers apply based on total protocol TVL at time of deposit. Earlier depositors earn at higher rates. #### **Withdrawals** If you withdraw, you keep all points earned up to that point on the withdrawn amount. Any new deposit re-enters at the current TVL multiplier tier. #### **Referral Program** Refer other depositors and earn 10% of their points. Your referrals keep 100% of their own points. #### **How to Maximize Points** 1. Deposit early when multipliers are highest 2. Deposit larger amounts for more base points 3. Avoid withdrawals to maintain tier progression 4. Use your referral link to invite friends #### **Frequently Asked Questions** * **When and where do I see my points?** * On the "Points" dashboard in your account on our app (icon is at the top right). * **Can I withdraw funds and still earn points?** * Yes. You keep all points earned up to the withdrawal. However, any new deposit restarts at the current TVL multiplier tier. * **What's the endgame for points?** * Reveal coming soon. Stay tuned for updates on our official channels. * **What if there's an error in my points calculation?** * Reach out to us via [Telegram](https://t.me/shredfi). * **How do I join the SHRED community for more info?** * Follow us on[ ](https://x.com/shaborfinance)[X](https://x.com/shredfi) and join our [Telegram](https://t.me/shredfi). # Referrals SHRED will launch a referral program alongside its points campaign. Users will earn additional rewards for inviting friends and growing the ecosystem. **Your referral link can be located on your dashboard:** 1. Under the wallet address dropdown at the top right. 2. On the official "Points" page (icon found at the top right) **How it works:** 1. Copy your unique referral link 2. Share it with friends 3. When they sign up and deposit, you receive 10% of their points (and they keep 100% of their own points). # Support For assistance, users can: * Message us on Telegram at[ t.me/SHREDfi](http://t.me/SHREDfi) * DM on[ X (Twitter)](http://x.com/SHREDfi) * Email Our team monitors channels closely and responds to technical or support issues quickly. Bugs can also be reported directly via Telegram or email. # FAQ ### INTRODUCTION **What is SHRED?**\ SHRED is a high-yield stablecoin savings protocol. Powered by Ethereum and Hyperliquid. It allows anyone to earn a target 10-15% APY on USDC (and eventually USDT) using delta-neutral arbitrage strategies. **Why does it matter?**\ Most savings today either underperform inflation (TradFi savings accounts, bonds, treasuries) or come with complexity and risk (DeFi farms, synthetic stablecoins). SHRED changes that by: * Delivering one of the safest ways to outperform inflation. * Offering sophisticated strategies in a simple, one-click savings vault * Focusing on real yield backed by real revenues, not token emissions. * Providing a foundational, stable product that outperforms most TradFi and DeFi products on a risk-adjusted basis. **How does it work?**\ Earning yield is simple: 1. Visit shred.fi. 2. Connect your wallet. 3. Deposit USDC or USDT. 4. Watch your balance grow — withdraw anytime. **What’s your vision?**\ Our mission is to build the default savings layer for the internet of money. SHRED will expand from Ethereum and Hyperliquid to a multi-chain protocol, creating the most scalable, reliable savings product in crypto. The long-term goal is to make shUSD, our receipt token, one of the most trusted collateral in DeFi via integrations with only the most trusted and reputable platforms. *** ### YIELD & STRATEGY **Where does the yield come from?**\ Yield comes from funding fees paid by perpetual traders on Hyperliquid (and eventually other perp DEXs). Unlike many protocols, we do not rely on inflationary token incentives — only real, sustainable revenue from perps markets. **Is the yield fixed or variable?**\ Variable. We target to deliver a 15% APY, but it's not guaranteed. Depending on market conditions this can be a range between 10-15%. Our buffer fund absorbs short-term fluctuations to stabilize returns, though in rare prolonged negative markets, yields may systematically adjust lower. **Is SHRED safe?**\ Yes, SHRED is: * Over-collateralized and transparent metrics via a Protocol Health dashboard. * Monitored 24/7 by automated risk bots. * Built by a former leading Cosmos team (0 hacks, 0 bad debt across years of DeFi). * Supported by a buffer fund designed to smooth volatility. Please refer to our "[Risks](/documentation/risks)" section for a more detailed explanation. **What assets are supported?**\ Currently USDC (and eventually USDT), which are fully backed stablecoins. We may decide to accept other high-quality stables in the future. **Does the strategy APY change over time?**\ Funding rates vary, but SHRED targets a stable 10-15% APY net to users. Returns may fluctuate slightly depending on execution costs, market volatility, and rebalancing activity. **What is a delta-neutral arbitrage strategy?**\ It’s a market-neutral trade where long and short positions cancel out price exposure (delta = 0). Profit comes from supply and demand dynamics of funding rates, not market direction. This strategy is widely used by professional hedge funds to generate stable returns on USD assets. *** ### DEPOSITS & WITHDRAWALS **How do I deposit into SHRED?** * Visit shred.fi. * Connect your wallet. * Click “Deposit” and approve the transaction. **Can I withdraw anytime?**\ Yes. Most withdrawals are instant. Very large withdrawals may be queued for up to 48 hours to ensure stability. **What are the deposit caps?**\ To scale safely, SHRED enforces dynamic TVL caps. These grow over time as liquidity capacity increases and risk parameters are validated. **Which networks are supported?**\ SHRED will go live on Ethereum and Hyperliquid first, and then expand cross-chain to other major blockchains. **Why is my withdrawal amount slightly different than my dashboard?**\ Due to execution of the strategy, slight differences between balances and final withdrawal amounts may occur, usually from spread, slippage, order sizing, rounding, etc. *** ### COSTS & FEES **What are your fees?** * We charge a 1% operational fee only after we pay out the target 15% to users and the buffer fund is healthy. * No fees on deposits or withdrawals. * No performance fee on user principal. **How is yield distributed?** * \~20% → Historical strategy performance * 15%\* → Target to users * 5% → Target to buffer fund + variable rewards + operational costs \ *Note - This is a target yield for users, but final results could differ due to market conditions.* *** ### PERFORMANCE **How can I track my performance?**\ All deposits, withdrawals, and yield are displayed in real time on your SHRED dashboard. **What separates SHRED from other similar products?** * Target APY (10-15%) vs. variable yields (Ethena, Pendle). * Real stables only (USDC/USDT) vs. algorithmic/synthetic stables. * Cross-chain scalability vs. single-chain capacity limits. * Proven Mars team with flawless track record. **How can I maximize my yield?**\ Stay deposited long term. Frequent withdrawals and redeposits trigger rebalancing costs. SHRED is designed as a “set-and-forget” savings protocol, compounding best over time. *** ### TOKENOMICS **Will you have a points campaign?**\ Yes. SHRED will launch an official points program with our public release (Q1 2026). **What do I get for joining early?**\ Early depositors will be rewarded with: * Extra points multipliers. * Bonus allocations at TGE. * Long-term loyalty boosts for holding through early phases. *** ### TECHNOLOGY **How is your system built?**\ A hybrid of audited smart contracts and automated monitoring scripts that continuously manage positions, rebalance and protect against risk. Failures trigger alerts for manual intervention. **Why build on Hyperliquid?**\ Hyperliquid offers unmatched perp liquidity, fast execution, and native infrastructure for funding rate arbitrage at scale. **What’s your team’s track record?**\ We are the a proven Cosmos team — veterans of DeFi with 0 hacks, 0 bad debt, and years of experience managing over $300m at peak in TVL and over 4 years across multiple chains. **What’s the roadmap?** * Q1 2026 → MVP live * Q1 2026 → Public launch + points campaign * Q2 2026 → Token launch + variable rewards * Beyond → Vault integrations + shUSD collateral adoption + mobile app **Has the project been audited?**\ All contracts will undergo a full third-party audit before launch. Reports will be published publicly. *** ### CUSTODY **Who holds the assets?** SHRED uses Fireblocks, an institutional-grade digital asset custody platform, to hold and move user funds. Fireblocks is used by exchanges, funds, and fintechs to secure digital assets at scale. **How are wallets secured?** Funds sit in Fireblocks Vault accounts secured by multi-party computation (MPC). Instead of a single private key that can be lost or stolen, the signing process is split across multiple parties, removing a simple “single key” point of failure. **How do we control where funds can go?** All movements go through a strict rule engine and address allow-lists. Only a small set of pre-approved destinations (wallets, exchanges, and contracts we’ve vetted) can receive funds; anything else is blocked by policy. **Is there an extra layer beyond Fireblocks?** Yes. On top of Fireblocks’ built-in controls, we run an additional layer of automated checks using multiple independent services that must all agree before a transaction is approved. In practice, this gives us something that behaves like a deeply inspected multisig or “guardian network” layer on top of institutional custody. **What does this mean for users?** You don’t interact with any of this directly. You deposit into SHRED, and under the hood your assets are custodied with Fireblocks and subject to multiple layers of automated risk controls before they can move. *** ### RISKS **How is risk managed?** SHRED employs continuous monitoring, conservative leverage, delta-neutral balancing, and emergency protocols. Rebalancing is automated with safeguards for slippage, spreads, and liquidation thresholds. **How do you handle extreme volatility?** * Emergency rebalancing procedures. * Buffer fund deployment for stability. * Batch execution to minimize slippage. **What if funding rates go negative?** * Temporary negatives are absorbed by the buffer fund. * Long-term negatives could lower APY but are historically rare. * The strategy has been back-tested across multiple cycles. **Is liquidation possible?**\ Yes, but highly unlikely. We use low leverage and conservative thresholds. In rare extreme cases, partial liquidation may occur — as is true for all protocols in this category. **What are the risks I should know about?** * Stablecoin de-peg risk (USDT/USDC). * Prolonged negative funding rates. * Infrastructure or bridging failures. * Unexpected rise in operational costs. *** ### REFERRALS **Do you have a referral program?**\ Not yet, but we will introduce referral incentives, rewarding users for bringing friends into the platform. *** ### SUPPORT **How can I get support?** * Telegram:[ t.me/SHREDfi](http://t.me/SHREDfi) * X (Twitter):[ x.com/SHREDfi](http://x.com/SHREDfi) * Email: **What if I encounter a bug or issue?**\ Reach out via Telegram or email us directly. Our team monitors reports and responds quickly. # Official Links Website - [shred.fi](https://shred.fi/) X (Twitter) - [x.com/shredfi](https://x.com/shredfi) Telegram - [t.me/shredfi](https://t.me/shredfi) Docs - [docs.github.fi](https://docs.shred.fi/) # Brand Kit