rHYPE-DN

The Raga HYPE Delta-Neutral Vault(rHYPE-DN) combines on-chain short positions and long holdings to generate consistent, market-neutral returns for users while maintaining full transparency through HyperCore and HyperEVM integration.

Strategy Overview

The vault maintains a delta-neutral exposure to HYPE by simultaneously:

• Shorting HYPE perpetuals on HyperCore, earning positive funding rates from traders taking leveraged long positions, where average funding rates for shorts have historically hovered around 20–25% APR annually. These positions are managed programmatically through CoreWriter, ensuring on-chain execution and verifiable exposure.

• Holding an equal amount of HYPE tokens on HyperEVM vault contract, neutralizing price exposure and preserving asset balance.

This setup allows users to earn sustainable returns derived from funding rate differentials rather than speculative price movements.

Upcoming Upgrade (v2) — Yield-Enhanced HYPE Vault

In the next iteration of the HYPE Delta-Neutral Vault, Raga will introduce yield enhancement by integrating the long HYPE leg with DeFi protocols on HyperEVM and partner ecosystems.

Planned improvements include:

• Supplying HYPE to on-chain lending markets or staking pools to generate additional base yield (expected 2-4% APR).

• Maintaining the existing short exposure on HyperCore, which continues to accrue funding.

• Automated rebalancing logic to optimize capital allocation between short and yield-bearing long positions, ensuring neutrality is maintained.

With this upgrade, users will earn two simultaneous yield streams:

1. Funding Rate Yield — from the short on HyperCore.

2. DeFi Yield — from supplying HYPE to on-chain protocols.

This design enhances total yield while maintaining a fully hedged, non-directional position.

APY Calculation

Unlike traditional staking or lending yields, returns in a delta-neutral vault depend primarily on funding rates, which fluctuate dynamically based on perpetual market conditions. To make this data more understandable and consistent for users, Raga Finance uses a rolling average model for APY estimation.

To present a clearer, more stable estimate of expected returns, Raga Finance calculates APY as the average of funding rates over the last 8 hours.

Vault APY=(Sum of Funding Rate (last 8 hours))×3×365/2

This rolling average ensures that displayed returns represent a realistic expectation of the vault’s earning potential while still reflecting real-time funding dynamics.