# Nunchi Yield Exchange Perps
### Be the House. Or Beat the Narrative.
* **Be the House:** provide inventory and earn what the system earns.
* **Beat the Narrative:** trade against the House and prove skill.
***
### Deterministic Index Perps
HIP‑3 works best with index perps because they’re the cleanest instrument for quoting and hedging yield exposure at scale.
Index perps are:
* **Easy to quote:** one standardized index, tight bps pricing, fewer idiosyncratic wicks.
* **Easy to hedge:** inventory can be hedged mechanically with offsets in the underlying/perp complex.
* **Built for carry and risk transfer:** the “asset” is the rate regime, not a token narrative.
Index perps make HIP‑3 legible, hedgeable, and market‑makable.
#### Trade indices on Hyperliquid
US Equity Indices
[Volatility Index (VXX) by Nunchi](https://yex.nunchi.trade/beta/market/yex%3AVXX)
[USTECH by Markets](https://app.hyperliquid.xyz/trade/km:USTECH)
[USA500 by Cash](https://app.hyperliquid.xyz/trade/cash:USA500)
[MAG7 by Ventuals](https://app.hyperliquid.xyz/trade/vntl:MAG7)
[XYZ100 by TradeXYZ](https://app.hyperliquid.xyz/trade/xyz:XYZ100)
US Treasury Yield Indices
[3-Month TBill Yields (US3M) by Nunchi](https://yex.nunchi.trade/beta/market/yex%3AUS3M)
Funding Rate Indices
[Bitcoin Cumulative Funding Index (BTCSWP) by Nunchi](https://yex.nunchi.trade/beta/market/yex%3ABTCSWP)
***
### Liquidity Is Agentic
Liquidity on YEX is not passive. It’s managed by the Nunchi **Agentic Binned‑liquidity Manager (ABM)**.
ABM posts liquidity across **bins** on the order book and continuously adjusts spread + size based on volatility and order‑flow pressure, so the House behaves like a real risk manager, not a static curve.
How ABM differs
* **vs AMMs:** AMMs are passive curves with static fee logic, vulnerable to LVR and toxic arbitrage during volatility.\
**ABM** is inventory‑aware and dynamically reprices to defend the House.
* **vs shielded order books:** shielding hides depth to reduce toxicity, but it also weakens price discovery and still doesn’t solve slow, reactive liquidity.\
**ABM** is explicit, adaptive quoting; depth that moves with risk.
* **vs typical execution engines:** most “bots on an order book” run slower, loosely-coupled repricing loops.\
**ABM runs a \~100ms quote-update loop;** fast enough to reprice ahead of the effective reaction window on Hyperliquid order books for most participants.
***
### Agentic Safety, by Design
Agentic only matters if it’s safe. The Nunchi ABM operates with hard safety limits
* exposure caps and inventory limits
* volatility circuit breakers (widen / reduce size / pause)
* per‑market kill switches + human override
* conservative fallbacks under uncertainty
The system is designed to support verifiable execution via a proof stream of attestation-bound logs.
***
The **House is live market‑making sandbox markets**. Traders can compete to beat it. Previous testnet stats are previous competition seasons.
Rewards align behavior: traders earn CHIPs, and top performers earn bonus CHIPs + % of deployer share in the HIP‑3 DEX.
**Be the House. Or Beat the Narrative.**
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