> For the complete documentation index, see [llms.txt](https://delpho.gitbook.io/delpho-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://delpho.gitbook.io/delpho-docs/delpho-101/susdv-the-yield-engine.md).

# sUSDV: the yield engine

sUSDV is the staked, yield-bearing form of USDV. A USDV holder who wants exposure to the protocol's yield stakes USDV and receives sUSDV. The yield comes from a hedged funding strategy on Hyperliquid perpetual futures.

## Where the yield comes from

Perpetual futures pay funding hourly. When traders crowd into leveraged long positions and push the perp price above spot, longs pay shorts. When they push it below spot, shorts pay longs. On Hyperliquid, hourly HYPE perp funding has been positive in roughly 90% of intervals over the trailing 180 days (through May 5, 2026).

<figure><img src="/files/JoNuTjF19Ztp6Seugr5T" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
The 18% borrow cost shown in the diagram is illustrative, not a fixed rate. Borrow costs are variable: they are the interest the protocol pays on the spot-long side of the hedge, and they move with lending-market conditions.
{% endhint %}

Delpho holds the short side of a hedged position. When funding is positive, that side receives the payment. The protocol nets the gross funding income against borrow costs (the interest the protocol pays on the spot-long side of the hedge) and protocol reserves, and routes the remainder to sUSDV stakers. The yield is variable. It is not a fixed coupon.

## What to expect under stress

If funding flips persistently negative, sUSDV yield can compress, fall to zero, or in some scenarios accrue negatively. At V1, Delpho's structural response is the treasury reserve, which absorbs the short-term gap. Two additional controls, hedge inversion and a programmatic pause on yield distribution, are planned for future releases. Read the full risk breakdown in the [Risk](/delpho-docs/risk/risk-overview.md) chapter.

{% hint style="info" %}
USDV and sUSDV bear different risks. USDV is the stablecoin - its peg is defended by the redemption ladder and treasury reserve, and a USDV holder is not directly exposed to funding direction. sUSDV is the yield-bearing version, which absorbs funding risk in exchange for the yield. See [Peg and redemption risk](/delpho-docs/risk/peg-and-redemption-risk.md) and [Funding rate risk](/delpho-docs/risk/funding-rate-risk.md).
{% endhint %}

## Where to go next

* [The yield engine: funding capture](/delpho-docs/how-delpho-works/yield-engine-delta-neutral.md) - the full mechanics of how Delpho captures funding.
* [sUSDV mechanics](/delpho-docs/how-delpho-works/susdv-mechanics.md) - per-share accrual, staking and unstaking.
* [Funding rate risk](/delpho-docs/risk/funding-rate-risk.md) - what happens under sustained negative funding.