The protocol generates returns by providing funding via perpetual contracts while hedging positions through underlying token ownership to eliminate price risk, effectively capturing perpetual basis yields that typically exceed 14%. Users can mint UTY with USDC, choose their preferred vault strategy, and withdraw funds after a 7-day unbonding period designed to protect against mass withdrawals and allow safe position closure.

XSY provides a yield-generating protocol that allows users to mint UTY tokens by depositing USDC and earn yields above 15% APY through perpetual contract funding strategies. The platform offers two vault options: yUTY for auto-compounding yield payments and xUTY for governance token accumulation, with plans to expand into inverse basis trading, tokenized T-Bills, and tailored liquidity loops.

XSY is a decentralized finance protocol built by cryptocurrency and traditional finance veterans from Algorand, Paxos, and major Wall Street derivatives firms. The project operates on Avalanche blockchain with institutional-grade security through Quantstamp audits and Ceffu & Copper custody solutions.