# What is Raga Finance Raga Finance simplifies DeFi investing through structured products that automate complex on-chain strategies. With one-click deposits and withdrawals, users can effortlessly access diversified yield strategies and track their daily performance in real time. Raga enables both crypto-native and new users to explore, understand, and invest in on-chain strategies tailored to their individual risk profiles. Each vault is deployed on specific chains and categorized by risk level: low, medium, or high, allowing users to earn optimized returns based on their appetite and asset preferences. Users deposit assets into vaults and receive shares in return, which can be redeemed for the underlying assets, subject to strategy-specific withdrawal periods. In addition to curated investment strategies, Raga vaults serve as a tool for pre-deposits and native yield generation on emerging L1s and L2s, ensuring users can earn from the moment liquidity is bridged without missing out on early ecosystem rewards. By abstracting complexity and automating strategy execution, Raga Finance aims to make decentralized finance more intuitive, accessible, and yield-efficient. Raga Finance is live on Hyperliquid and Berachain. You can start earning [here](https://raga.finance/vaults) # How does Raga Finance generate returns Every chain is different, and so are the strategies involved to generate returns on them. The most common ways that Raga vaults generate returns are: * **Delta-Neutral Strategies:** Combine long staking positions with short hedges (e.g. via Ethena) to capture staking rewards while minimizing exposure to price volatility. * **Staking & Restaking:** Lock assets in native PoS or liquid-staking protocols (e.g., Lido, EigenLayer). Rewards are continuously restaked to compound returns. * **Lending:** Supply assets to leading lending platforms (e.g., Aave, LayerBank) to earn interest from borrowers and protocol incentives. * **Looping:** Recursively borrow and re-lend collateral to amplify yield. Loop depth is optimized to balance extra return against liquidation risk. * **Yield trading:** Maximise fixed yield generation through interest trading protocols (e.g., Pendle, Spectra) by looping yields on PT-strategies To know more about the active strategies, you can have a look at vaults for following chains: 1. Hyperliquid-delta neutral strategies: [Delta Neutral](/strategies/delta-neutral) 2. Berachain POL(proof of liquidity) specific strategies: [Raga Auto-compounding Vaults](/berachain/raga-auto-compounding-vaults) 3. Hemi Yield-looping strategies: [Yield-looping Vaults](/hemi/yield-looping-vaults) # Delta Neutral Raga Finance’s **Delta Neutral Vaults** allow users to earn consistent yield without taking directional exposure to price movements. These vaults balance long and short positions to eliminate market risk while generating sustainable returns from funding rates, staking yields, or protocol incentives ### **How It Works** The delta neutral strategy is designed to stay *market-neutral,* meaning your returns don’t depend on whether the price of the underlying asset goes up or down. Here’s how it works in practice: 1. **Long Exposure via DeFi Protocol:**\ The vault opens a long position on an asset (for example, HYPE) through a DeFi protocol or LP exposure. This leg earns the base yield, such as staking rewards or trading fees. 2. **Short Exposure via Perpetuals on Hyperliquid:**\ To hedge the price risk of the long position, the vault simultaneously opens an equal-sized short position on **Hyperliquid Perpetuals**, managed by Raga’s on-chain strategy manager.\ This short neutralizes the asset’s price exposure and hence “delta neutral.” 3. **Earning Neutral Yield:**\ Since price risk is neutralized, the yield comes from **funding rate differentials**, **incentives**, or **protocol yields** rather than speculative price changes.\ In Raga’s case, positions are transparently managed on Hypercore, and anyone can track the backend flow of trades. **Example** Suppose HYPE staking yields 2% APR, and the short position on Hyperliquid pays a 14% funding rate to shorts (positive funding for shorts). * The vault earns 2% from staking and 14% from funding, generating a total of 8**% market-neutral yield,** regardless of HYPE price movement. ### **User Benefits** * **Stable Returns:** Earn consistent yield without worrying about market volatility. * **Fully On-Chain & Transparent:** Positions are managed on Hyperliquid’s on-chain orderbook; users can track the strategy in real time. * **Non-Custodial:** Users always maintain control over their assets; Raga never takes custody. * **One-Click Execution:** The complex hedging strategy is abstracted into a simple, single-click experience for users. ### **Supported Networks** Raga Finance’s first **Delta Neutral Vaults** will launch on [**Hyperliquid**](/hyperliquid/about-hyperliquid)**.** But, similar strategy can be launched on any chain with yield bearing token and perp dex depending on how deep liquidity is there. # Auto-compounding Raga Finance’s **Auto-compounding Vaults** maximise the returns earned by Raga users in a safe and efficient way. Raga earns compound interest on user assets by reinvesting the returns generated in DeFi strategies at regular intervals. As a user, you earn more with minimal effort. ### **How It Works** Users deposit assets (e.g., ETH, ETH derivatives, BTC, USDC, WBERA, etc) into a dedicated vault on Raga Finance. Each vault has a predetermined investment strategy through which it allocates the capital to DeFi protocols. Raga then compounds the returns on the strategy by claiming and reinvesting the earnings at regular intervals ### **User Benefits** * **Maximise returns:** Raga earns compound interest by reinvesting the earnings * **Minimise costs:** The Costs of harvesting returns and reinvesting are amortised over all the users, reducing the cost per user * **Save time and effort**: Users can deposit in the strategies for the long term and keep earning returns without the need for active management ### **Supported Networks** Raga Finance auto-compounding vaults are live on Berachain. You can access them [here](https://app.raga.finance/) To know more about the active strategies and other vault details, you can refer to the [Berachain section](/berachain/about-berachain) # Yield-looping Raga Finance’s **Yield-looping Vaults** utilise leverage to allow the users to double down on their favourite strategies. This allows users to earn 2-3 times more on their favourite strategies, while controlling their own risk vs reward tradeoffs. ### **How It Works** The yield-looping strategy takes advantage of the difference between the yield generated through a DeFi protocol and the cost of borrowing the input asset. For example, the most popular is a leveraged liquid staking strategy. Assume that liquid staking ETH through Lido has a staking return of 4%. Also, you can borrow ETH on Aave at 2%. Then, if you just stake ETH on Lido, you earn 4%. Instead, if you use the wstETH (Lido-staked ETH) as collateral to borrow more ETH and stake, you earn an extra 2% (4%-2%) return. The higher the leverage, the larger the earnings. In this case, for a 3x leverage, the returns generated become 8% against a base return of 4%, doubling the returns. Summary: * Hold wstETH, return = 4% * Leverage liquid stake at 2x leverage, earn 2\*4% = 8%, pay interest = 2%, net return = 6% ### **User Benefits** * **Increased returns:** Higher returns by doubling down on strategies that you believe in * **Simplified strategies:** Raga abstracts out the complexities and allows the user to single click open and close their positions * **Transparent**: User has complete control of their assets, and can visualise the risk reward curve through simplified parameters shown by Raga ### **Supported Networks** Raga Finance will soon go live with its first yield-looping vaults in partnership with [Spectra](https://www.spectra.finance/) and [Hemi](https://hemi.xyz/). You can get yourself whitelisted and read more about the vaults [here](/hemi/about-hemi) # Predeposits Raga Finance’s **Pre-Deposit Vaults** empower users and emerging ecosystems to bootstrap liquidity seamlessly and earn yield before a network’s public launch. ### **How It Works** Users commit assets (e.g., ETH, ETH derivatives, BTC, BTC derivatives, USDC, DAI, USDT) into a dedicated vault on Raga Finance. These funds remain productive—earning native yield—throughout the bridging or network warm-up period. Once the target Layer 1 or Layer 2 ecosystem launches, liquidity is automatically deployed to support on-chain activity. ### **Ecosystem Advantages** * **Early Capital Access:** Secures the necessary liquidity runway for critical initial transactions (DEX listings, staking programs, airdrops). * **Smooth Bootstrapping:** Reduces launch­-day volatility and friction by front-loading capital in a controlled, transparent manner. ### **User Benefits** * **Yield Preservation:** Idle assets earn native protocol rewards instead of sitting dormant during pre-launch phases. * **Opportunity Protection:** Users avoid missing out on early incentives or high-APR opportunities once the network goes live. ### **Supported Assets** * **Ethereum & Derivatives:** ETH, staked ETH, wETH * **Bitcoin & Derivatives:** BTC, tokenized BTC * **Stablecoins:** USDC, DAI, USDT, USDe By aligning the interests of both participants and protocols, Pre-Deposit Vaults create a win-win: ecosystems gain immediate liquidity, and users maximize their capital’s earning potential from day one. # Institutional Vaults Raga Finance’s **Institutional Vaults** deliver reliable, enterprise-grade yield solutions for large-scale investors across Proof-of-Stake networks. ### **How It Works** Institutions deposit assets (e.g. ETH, SOL, tokenized PoS tokens) into Raga Finance’s non-custodial vaults. These assets are staked directly on the underlying chain, and rewards are automatically harvested and credited back to the institution on a configurable cadence. ### **Key Benefits** * **Predictable Yields:** Leverage attractive staking returns native to each PoS network—returns that scale with institutional capital. * **Enterprise-Grade Security:** * **Non-Custodial Flow:** Assets remain under institutional control at all times, minimizing counterparty risk. * **Audited Smart Contracts:** We adhere to industry best practices and engage leading security firms for regular audits. * **Full Transparency:** Institutions receive real-time reporting on balances, pending rewards, and historical performance. ### **Supported Networks & Assets** * **Ethereum & Derivatives:** ETH, stETH, wETH * **Solana:** SOL, mSOL * **Other PoS Chains:** A selection of vetted Layer 1 and Layer 2 networks with robust staking markets For a tailored institutional partnership or custom terms, please get in touch with our team members: * [Rohit](https://t.me/RohitxNexus): Founder/CTO, Raga Finance * [Mayank](https://t.me/mnkrj): Founder/CEO, Raga Finance # About Hyperliquid Hyperliquid is a high‐performance, on-chain derivatives platform which launched in 2023 and has rapidly scaled to handle **over US$1.5 trillion** in annual perpetual futures trading volume. In recent months it has averaged roughly **US$6-8 billion in daily trading volume**, securing market-share leadership in the on-chain derivatives sector. The platform currently services more than **500,000 users** (and counting) and has processed tens of billions of dollars in total deposits, as it builds out its dual-layer architecture combining a high-speed order-book engine with an EVM-compatible smart-contract layer ### How it works? Hyperliquid is a next-generation blockchain architecture combining: * **HyperCore**: A high-performance Layer-1 exchange engine which handles order books (spot & perpetual), staking, vaults, native multisigs and other core exchange state. * **HyperEVM**: An EVM-compatible smart contract environment that runs in tandem with HyperCore, enabling conventional smart contracts to tap into the high-speed liquidity and primitives of HyperCore. Together they use a unified consensus layer (HyperBFT) so that both layers share security, rather than being loosely bridged.
### How HyperCore and HyperEVM Interact **1. Dual-Block Architecture** HyperEVM adopts a dual-block strategy: * Small blocks: \~1 second block time, \~2 M gas limit. * Large blocks: \~60 seconds, \~30 M gas limit for heavier transactions. * This allows for both ultra-low latency (for trading) and large contract executions. **2. Shared Asset Layer & Transfers** Assets (including the native token HYPE) exist in both layers without wrapping. Movement between HyperEVM and HyperCore isn’t “bridging” in the typical sense, but a state transfer within the unified system. * HyperEVM → HyperCore: Transfers finalise in the same L1/Core block after the EVM block completes. * HyperCore → HyperEVM: Transfers are queued until the next EVM block. **3. Read & Write Interfaces** * **Precompiles / Read-Only**: Smart contracts on HyperEVM can query HyperCore state via precompiled addresses (e.g., spot balances, perp positions, vault equity) starting at `0x000…0800`. * **CoreWriter (Write)**: The system contract deployed at a fixed address (`0x3333333333333333333333333333333333333333`) allows EVM contracts to send *actions* to HyperCore (placing orders, vault transfers, etc.). When an EVM contract invokes CoreWriter, the action is logged, queued and executed in a subsequent Core block — so it’s not atomic with the EVM transaction. # Raga Delta Neutral Vault Raga Finance’s **Delta-Neutral Vaults** are built natively on **Hyperliquid’s HyperEVM**, leveraging the full performance of the **HyperCore** order-book engine through **CoreWriter** integration.\ This architecture allows Raga to execute complex hedging strategies in a fully on-chain, transparent, and non-custodial manner, without relying on centralized market makers or opaque execution layers. ### Why We Built on HyperEVM? When Hyperliquid launched **HyperEVM** on top of **HyperCore**, it unlocked a new design space for DeFi automation.\ Traditional delta-neutral platforms such as Ethena, Liminal, or HarmonixFi face three persistent limitations: 1. **Centralized dependencies** – execution or hedging handled by off-chain systems. 2. **Opaque risk management** – users can’t verify real-time hedging activity. 3. **Fragmented yields** – no efficient cross-chain method to optimize yield differentials. HyperEVM and CoreWriter solve these issues by combining **HyperCore’s on-chain liquidity** with **EVM composability**, allowing Raga to: * Execute hedged positions directly on HyperCore. * Read and verify real-time vault state transparently on-chain. * Deploy vaults that autonomously rebalance exposure across multiple ecosystems like Berachain or Hemi, while shorting on Hyperliquid. ### How Raga Leverage Corewriter? Raga’s delta-neutral vaults combine long and short exposures to eliminate market risk while capturing yield differentials: 1. **User deposits stablecoins** into the vault. 2. The vault splits the capital: * **Long leg:** Buys or stakes the target asset (e.g., HYPE, BTC, or BERA) to earn staking yield. * **Short leg:** Opens an equal short perpetual position on **Hyperliquid** to hedge price exposure. 3. **CoreWriter** executes these actions programmatically on HyperCore, ensuring atomic, on-chain transparency. 4. The vault continuously monitors funding rates, staking yields, and collateral efficiency to maximize **neutral yield**. Example: Backtesting the data for HYPE: * HYPE staking yield ≈ 2 % APR * Short funding rate ≈ 25 % APR\ → Net neutral yield ≈ 13.5 % APR (without taking directional risk). ### CoreWriter Integration The **CoreWriter** precompiled contract (address `0x3333333333333333333333333333333333333333`) is the bridge between **HyperEVM logic** and **HyperCore execution**.\ Every vault action like opening a short, transferring collateral, or closing a position is encoded and sent through CoreWriter to be executed by HyperCore validators. **Action Encoding Format:** ``` abi.encodePacked( bytes1(0x01), // Encoding version bytes3(actionId), // Action type identifier abi.encode(data) // ABI-encoded payload ) ``` Example: Sending funds from HyperEVM to HyperCore: ``` abi.encodePacked(bytes1(0x01), bytes3(6), abi.encode(destination, tokenId, weiAmt)) ``` Each transaction: * Emits an **event** that validators read and execute in the next Core block. * Takes at least one small block (\~1 sec) to relay. * Requires state verification to ensure success (Raga runs a lightweight oracle to confirm execution). This system design keeps execution **transparent**, **verifiable**, and **non-custodial**. #### What We Learned * **Latency awareness** – CoreWriter calls are not atomic, requiring careful queue management. * **Cross-chain consistency** – when transferring assets between HyperEVM and HyperCore, the balance momentarily disappears (\~1 sec). The vault’s state machine accounts for this. * **Resilience** – occasional CoreWriter failures require off-chain watchers and retry logic for robustness. Despite these challenges, HyperEVM’s unified consensus, dual-block system, and direct Core access make it the most suitable environment for **high-frequency, liquidity-intensive DeFi strategies**. # 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. #### Withdrawals of Funds Users can go to their portfolio and schedule a withdrawal. The oracle processes withdrawals every epoch and it takes 1-2 days for closing the positions and transfer the funds to users account. \ Once the withdrawal is scheduled, users can sit back and relax, the funds are automatically transferred to user wallets once positions are closed. # About Berachain POL auto-compounding vaults Berachain went live with a completely new paradigm to incentivise liquidity on the chain through chain-level emissions for each pool deployed on Berachain baked in Berachain consensus mechanism ### How it works? Proof-of-Liquidity (PoL) is an extension of Proof-of-Stake (PoS) that realigns economic incentives among validators, applications, and users. This is enabled through a two-token model - a token responsible for chain security (`$BERA`) and a token accountable for governance and rewards (`$BGT`)
The main components in POL are: 1. **Validators**: Anyone who wants to be a validator has to stake `$BERA` and run the software on a VM that should be connected to the wider network. Validators are responsible for: 1. Producing blocks and verifying transactions 2. Redirecting BGT emissions to reward vaults 3. Participating in governance 2. **Reward Vaults:** These are vaults that validators decide through governance to redirect `$BGT` emissions to. The reward vaults incentivize certain actions, like staking of LP tokens. 3. **Protocols:** Protocols on Berachain incentivize their preferred user action by rewarding validators to emit `$BGT` to the reward vault participants. Most of these rewards earned by Validators are passed on to the vault users to incentivise them to deploy funds to their vaults. This also incentivises the delegation of new `$BGT` emissions back to the validators 4. **Users**: Users deposit assets in whitelisted reward vaults to receive BGT emissions. These emissions can be redirected to validators so that they can generate more BGT emissions. Berachain employs a unique three-token system: * **BERA**: The native gas token used for transaction fees and staking by validators. * The more `$BERA` a validator stakes, the more chances they get to propose a block. * **BGT (Berachain Governance Token)**: A non-transferable token earned through liquidity provision, used for governance and staking. * The BGT emissions are directly proportional to the BGT emissions redirected to validators. * **HONEY**: A stablecoin used within the ecosystem for trading and as a medium of exchange. # Berachain user research ### Issues faced by Berachain users Raga team did a survey of 100+ Berachain users to understand the pain points of PoL. The top three issues raised by Berachain users were - 1. Complexity to understand the POL mechanism 2. Constantly moving funds to different reward vaults for maximising returns 3. Manually claiming and restaking BGT to validators ### How Raga Finance solves them? Raga Finance vaults enable users to earn maximum return while removing the complexities faced by them. These are the features of Raga Finance vaults - 1. Auto-compounding of rewards 2. Easy withdrawals 3. Users can deposit and withdraw the asset they want 4. Visibility of strategy risk 5. Transparent investment strategy that every user can see and understand # Raga Auto-compounding Vaults Vaults on Berachain are auto-compounding, i.e, they reinvest all the earned rewards back into the strategy to increase the return. Raga Finance vaults allow users on Berachain to: 1. Buy shares of vaults using any token on Berachain 2. Earn auto-compounded returns - Raga runs auto-compounding loops every few minutes to claim the rewards. All the staking rewards are claimed and converted to base asset and supplied back to the vaults 3. Withdraw assets anytime ### Vault Partners We are partnering with liquid staking providers on Berachain to optimise the yields. ### [Infrared Finance](https://infrared.finance/) Infrared Finance aims to maximize value capture by providing easy-to-use liquid staking solutions for `BGT` and `BERA`. Users can deposit LP tokens to Infrared vaults and get iBGT. iBGT, when staked, earns you `WBERA` and `HONEY` . Currently, these vaults are live on Raga Finance * **BYUSD/HONEY:** Stable vault that lets you earn returns on your stables. Your base asset dollar value never goes down while you earn BGT returns on top * **WBERA/iBGT:** BERA token-specific vault, letting people participate in the ecosystem with high APR. ### [BeraPaw](https://www.berapaw.com/) BeraPaw is a novel liquid wrapper protocol built atop **Berachain’s Proof of Liquidity (PoL)** consensus mechanism. It simplifies and automates PoL interactions for participants, enabling them to unlock the full potential of Berachain’s governance token, **BGT**, in a decentralized and user-friendly manner. Users can deposit any LP token and get BGT emissions in the form of LBGT. Currently, these vaults are live on Raga Finance: * **LBGT/WBERA:** Bera token-specific vault, letting users participate in the ecosystem with high APR and earn pPaw rewards on top of the emissions. # Infrared Vaults ### Introduction The Infrared Strategy is one of Raga Finance's automated yield optimization solutions that compounds returns from liquidity provision. This document explains how our simulation system models potential earnings when using this strategy, providing transparency into our methodology and helping users make informed decisions about capital allocation. ### Strategy Overview The Infrared Strategy employs an automated compounding approach that maximizes returns from liquidity provision through a systematic process: 1. **Initial Liquidity Provision**: Your tokens are swapped and used to provide liquidity to selected pools (e.g., wBERA/iBGT). 2. **LP Staking**: The received LP tokens are automatically staked in Infrared reward vaults. 3. **Reward Collection**: iBGT rewards are claimed and staked in dedicated iBGT vaults. 4. **Additional Rewards**: wBERA and HONEY rewards are regularly harvested. 5. **Optimal Swaps**: Assets are exchanged when necessary to maintain optimal ratios. 6. **Re-liquidity Provision**: Newly acquired assets are used to provide additional liquidity. 7. **Continuous Compounding**: This process repeats every 10 minutes, creating a compound growth effect. ### Current Strategies Raga has implemented following strategies for the Mainnet: 1. **Stable coin strategy(HONEY/BYUSD):** User's assets are converted to underlying lp token on BEX pool and supplied to infrared staking vault 2. **Infrared vault(wBERA/iBGT):** User's assets are converted to underlying lp token on Kodiak pool and supplied to infrared staking vault # Berapaw Vaults ### Introduction Berapaw is the most decentralised liquid staking protocol on Berachain, which uses `$Paw` token for governance of delegation of BGT to validators. Raga Finance leverages BeraPaw's infrastructure to offer users optimized yield strategies through auto-compounding mechanisms. ### Strategy Overview 1. User Deposits: Your tokens are swapped and used to provide liquidity to selected pools (e.g., wBERA/LBGT). 2. Earning `$LBGT`: As a result of staking, Raga earns `c` tokens, representing the liquid derivative of `$BGT` emissions. 3. Auto-Compounding: Raga then converts the earned `$LBGT` back into the underlying LP tokens and re-stakes them into BeraPaw's vaults, effectively auto-compounding the user's yields. 4. `$PAW` Rewards: Any `$PAW` tokens delegated to Raga from BeraPaw are also distributed back to users, enhancing their overall returns. # BERA VAULT (TESTNET) ### Simulation Methodology Our simulation engine provides a realistic projection of potential earnings by modeling the complex interactions between different yield sources and compounding mechanics. #### Data Sources The simulation is powered by comprehensive real-time and historical data: * **On-chain Data**: Pool metrics, token prices, and reward rates are pulled directly from the blockchain via smart contract interactions and GraphQL queries. * **Protocol Parameters**: Fee rates, emission schedules, and incentive distributions are captured with precision. #### Simulation Components **1. Revenue Stream Modelling** Our simulation accounts for three primary sources of return: **Pool Trading Fees** * Calculated per dollar of liquidity provided * Based on actual pool trading volume and the applicable fee tier * Dynamically updated as market conditions change **BGT Emissions** * Calculated based on your proportional stake in the liquidity pool * Distributed in consistent intervals (every 10 minutes) * Forms a significant component of the base yield **BGT Incentives** * Additional rewards on top of standard emissions * Includes derivatives from BGT staking (wBERA and HONEY tokens) * Adjusted based on current on-chain reward allocation rates **2. Projection Calculation** For a specified deposit amount X and time period T, the simulation: 1. Initializes the principal investment amount 2. Applies the compounding logic at 10-minute intervals 3. Accounts for all three revenue streams at each step 4. Factors in transaction costs and slippage 5. Calculates the final projected value after T days ### How to Use the Simulator The Infrared Strategy simulator allows you to: 1. **Input Parameters**: * Specify the amount of USD you wish to deposit * Select your preferred time horizon (e.g., 7 days, 30 days, 90 days) * Choose the specific pool (when multiple options are available) 2. **View Projections**: * Total projected value after the selected period * Estimated APY based on current conditions * Breakdown of returns by source (fees, emissions, incentives) 3. **Compare Scenarios**: * Test different deposit amounts * Explore various time horizons * Evaluate performance across different pools ### Simulation Accuracy & Limitations Our simulation aims to provide realistic projections based on current data, but users should note: * **Market Variability**: Actual returns may vary based on changes in trading volume, token prices, and protocol parameters. * **Reward Fluctuations**: BGT emissions and incentives are subject to governance decisions and may change over time. * **Protocol Updates**: Changes to the underlying protocols may impact actual performance. ### Try the Simulator Experience the potential of the Infrared Strategy firsthand: [Launch Infrared Strategy Simulator](https://app.raga.finance/) # About Hemi Hemi Network is a modular Layer-2 (L2) protocol that unifies Bitcoin and Ethereum making them interoperable. Their goal is to bring the best of both worlds so that developers can leverage the chains to build on top. It enables Bitcoin on the network to be able to participate in DeFi on Hemi natively without any wrapping. Core Components of Hemi Network: 1. **Hemi Virtual Machine:** An Ethereum Virtual Machine (EVM) that incorporates a full Bitcoin node, enabling smart contracts to access and react to Bitcoin's state directly. To expose Bitcoin data to smart contracts, hVM introduces a number of new precompile contracts accessible in the EVM which fetch the latest data from the Processed Bitcoin View 2. **Hemi Bitcoin Kit:** The Hemi Bitcoin Kit (hBK) is a set of smart contracts designed to bridge the Ethereum and Bitcoin blockchains, enabling developers to build Bitcoin-aware dApps on an EVM with full access to Ethereum assets and the cross-chain data calls that ETH L2s provide 3. **Tunnels:** Tunnels allow for sophisticated, noncustodial bidirectional asset transfers between networks, such as Bitcoin and Ethereum. Unlike traditional bridges, tunnels within the Hemi Network maintain state awareness of both networks at the protocol level. 4. **Proof-of-Proof (PoP) Consensus:** Proof-of-Proof (PoP) allows Hemi to inherit the solid Proof-of-Work (PoW) security of Bitcoin. To achieve this, Hemi deploys specialized miners, referred to as **PoP Miners**. These miners are responsible for: * Gathering crucial network details and publishing them on Bitcoin's blockchain, thereby linking Hemi's security directly to Bitcoin's proven system. * Employing sophisticated algorithms to generate proofs that are vital for the network's security. * Ensuring Hemi's network integrity by leveraging Bitcoin's security, providing a dual layer of protection. # Hemi User research ### Requirements of Hemi and Spectra users Raga team talked to major users of yield-trading platforms like Spectra on Hemi to understand their pain points. The top requirements from these users are - 1. Earn higher returns on deployed capital on Hemi 2. Simple interface to compound returns on their PT-asset holdings 3. Clear understanding of the risks associated with any yield-looping strategy ### How does Raga Finance solve them? Raga Finance yield-looping vaults enable Spectra users to use leverage to increase their returns on PT-holdings. These are the features of Raga Finance vaults - 1. Create and close positions in a single click 2. Leverage slider to set desired leverage 3. Easy monitoring of position risk 4. Transparent investment strategy that every user can see and understand # Yield-looping Vaults ### What is Raga doing on Hemi Network? With the growth of DeFi, yield trading enabled by Spectra and Pendle has become a go-to way for users to hedge their DeFi yield expectations. This has created PT-assets, a fixed yield product that generates a defined yield if held to maturity. [More details here](https://docs.pendle.finance/ProtocolMechanics/YieldTokenization/PT) Raga is working with the Spectra team to maximise returns on the PT assets through a yield-looping strategy. The basic premise is that the fixed yield on PT-assets on Spectra is higher than the borrowing rates for these assets, creating an arbitrage opportunity. Raga can use the PT-assets as collateral to borrow the base asset, and earn more PT-assets, earning the differential. This can be looped over multiple times to maximise the user returns. For example, bfBTC on Hemi is a yield-bearing BTC derivative with an ongoing PT-asset pool offering a fixed 6% return till Sep 25, 2025. The borrowing rate of BTC on Ajna (a borrowing/lending protocol) as of today is 2.5%. Here is how the strategy goes - 1. Deposit BTC into bfBTC Spectra pool on Hemi to get fixed yield PT-bfBTC (earns 6%) 2. Use PT-bfBTC as collateral on Ajna to borrow BTC (pay 2.5% interest rate) 3. Deposit borrowed BTC into bfBTC Spectra pool on Hemi to get more fixed yield PT-bfBTC (earns 6%) 4. Repeat the loop to reach a target leverage For each loop, the user earns an additional 3.5% (6% yield - 2.5% interest rate). **At 3x leverage, the users generate 13% returns instead of the base 6%, more than doubling the returns.** Yield-looping vaults on Hemi are undergoing audits and will go live soon # Berachain Mainnet Coming soon.... # Hyperliquid Mainnet # Berachain Testnet We have created simulations for our vaults that enable users to visualize their returns on the basis of amount they want to invest and time period they are willing to put their money in. Also, users can get whitelisted for early access of the vaults when they try our simulation. Follow the instructions in the video to get whitelisted for early access of the vaults. {% embed url="" %} Simulation of auto-compound vaults {% endembed %} # Hyperliquid vault There are two components for the delta neutral strategy on Hyperliquid: 1. **Smart Contracts:** The vault contract deployed on hyperEVM holds all the user funds and also creates a short positon on HyperCore side. The vault contract has access of funds at all time and uses corewriter to manage positions on hyperCore. 2. **Oracle:** The offchain oracle is responsible for triggering actions like opening and closing of positions. It never gets access to the funds, it just has the ability to trigger certain functionality through vault smart contract. The oracle also follows an epoch based approach so process deposits and withdrawals. This allows it to process them in more efficient manner. Below are smart contract functions that used by user and oracle: #### User specific functions * **deposit:** User calls this function with amount of USDT0 he wants to deposit in the vault. * **totalAssets:** User can check total USDT balance of all the positions that vault contract holds. The positions include, funding rate, short position, long positions and amount in the contract. * **balanceOf:** User can check their share balance using this function * **convertToAssets:** User can check how much they'll get at time of withdrawals with the help of this function * **requestWithdrawal:** User can call this function with amount of shares they want to withdraw #### Oracle specific functions * **transferUSDT0ToCore:** Oracle can call this function to send funds to hyperCore address. The funds are only transferred to vault address on hyperCore * **swapUSDT0ForExactHype:** function used by oracle to swap usdt0 to exact hype amount for which the short position was opened on hyperCore * **placeLimitOrder:** function used by oracle to open short position on vault contract behalf on hyperCore * **updateEpoch:** function used by oracle to start a new epoch and start the process to handle deposits and withdrawals * **processEpochAndNotify:** function used by oracle to finish the epoch and finalise all the withdrawal request created in previous epoch # Hyperliquid Contracts Following are the mainnet contract deployed for Hyperliquid | Contract Name | Contract Address | | ----------------------------- | --------------------------------------------------------------------------------------------------------------------------------- | | Vault Contract Proxy | [0xdcd322bc20b65c792fa653fd996ac31d72f61290](https://hyperevmscan.io/address/0xdcd322bc20b65c792fa653fd996ac31d72f61290) | | Vault Contract Implementation | [**0x37b1670959ed87bed73b13951fde866bf47c80be**](https://hyperevmscan.io/address/0x37b1670959ed87bed73b13951fde866bf47c80be#code) | | CoreReader | [0xCB112f11035258F8f1C31Df6aab88F67A8d5A568](https://hyperevmscan.io/address/0xCB112f11035258F8f1C31Df6aab88F67A8d5A568) | | Oracle | 0x141399160a3c086fa7d8875e9c07Bb84757A666F | # Auto-compounding vaults (Berachain) Raga Finance's vault system is designed to manage user deposits, execute investment strategies, handle fees, and optimize yield generation through a combination of on-chain smart contracts and off-chain executors.​ 1. **VaultContract**: 1. **Function**: Serves as the primary interface for users and protocols to deposit funds. 2. **Responsibilities**: 1. Accepts user deposits and issues corresponding shares. 2. Manages the allocation of funds to various strategies. 3. Tracks and distributes rewards earned from strategies. 2. **StrategyManager**: 1. **Function**: Oversees the management and approval of investment strategies.​ 2. **Responsibilities**: 1. Maintains a registry of whitelisted strategies. 2. Ensures strategies meet predefined risk and compliance criteria. 3. Coordinates with VaultContract for fund allocation. 3. **FeeModule**: 1. **Function**: Calculates and collects fees associated with deposits, rewards, and early withdrawals.​ 2. **Responsibilities**: 1. Applies deposit fees (0–1%) upon asset entry. 2. Deducts reward fees (0–10%) from earnings. 3. Imposes withdrawal fees (0–1%) for early exits. 4. **Strategies**: 1. **Function**: Individual smart contracts implementing specific investment strategies.​ 2. **Responsibilities**: 1. Execute investment logic (e.g., yield farming, lending). 2. Interact with external DeFi protocols to generate returns. 3. Report performance and manage allocated funds. 5. **Offchain Executor**: 1. **Function**: An off-chain service responsible for initiating and managing transactions related to strategies.​ 2. **Responsibilities**: 1. Triggers fund movements between VaultContract and Strategies. 2. Claims rewards from external protocols. 3. Reinvests earnings back into strategies or VaultContract. # Berachain contracts Following are the mainnet contracts deployed on Berachain by Raga Finance: | Contract Name | Address | | ----------------------------- | --------------------------------------------------------------------------------------------------------------------------------------- | | Raga Vault Registry | [0xf8405ffdcd77385ec014b6bce5ebee14bd98f8d9](https://berascan.com/address/0xf8405ffdcd77385ec014b6bce5ebee14bd98f8d9#readProxyContract) | | Berapaw wBera-LBGT vault | [0x57F42fD024f46a1a98dF847c5111e1d44eB4dfF9](https://berascan.com/address/0x57F42fD024f46a1a98dF847c5111e1d44eB4dfF9#readProxyContract) | | Berapaw wBera-LBGT strategy | [0x8145393ba8A7Bfb7e5Efe0f6cfcE96993e16EC5F](https://berascan.com/address/0x8145393ba8A7Bfb7e5Efe0f6cfcE96993e16EC5F#readProxyContract) | | Infrared Honey-byUSD vault | [0xE02C15E8701d2a8271F351fCA5B2F2146dcfC11B](https://berascan.com/address/0xE02C15E8701d2a8271F351fCA5B2F2146dcfC11B#readProxyContract) | | Infrared Honey-byUSD strategy | [0x91f994180aC8837a563DA37B1A03A4BCc38d3A77](https://berascan.com/address/0x91f994180aC8837a563DA37B1A03A4BCc38d3A77) | | Infrared wBera-iBGT vault | [0xbF654B873cDc0f2776D8512A686cFa7AbAC87A39](https://berascan.com/address/0xbF654B873cDc0f2776D8512A686cFa7AbAC87A39#readProxyContract) | | Infrared wBera-iBGT strategy | [0x8467D6Eaa1Aa4E9Bc4CC82cA98A27b64A9c624Dc](https://berascan.com/address/0x8467D6Eaa1Aa4E9Bc4CC82cA98A27b64A9c624Dc) | # Audits * [Berachain audit by Quillaudits](https://github.com/Nexus-2023/audits/blob/main/Audits%3AQuillAudits_Smart_Contract_Audit_Report_Raga_Finance_on_Berachain.pdf) * [Independent researcher audit](https://github.com/Nexus-2023/audits/blob/main/Audits%3ATejas_Smart_Contract_Audit_Report_Raga_Finance_on_Berachain.pdf) * [Hyperliquid Contract Audit](https://github.com/Nexus-2023/audits/blob/main/smart_contract_hyperliquid_audit.pdf) * [Hyperliquid Oracle Audit](https://github.com/Nexus-2023/audits/blob/main/oracle_hyperliquid_audit.pdf)