# 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

<details>

<summary>US Equity Indices</summary>

[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)

</details>

<details>

<summary>US Treasury Yield Indices</summary>

[3-Month TBill Yields (US3M) by Nunchi](https://yex.nunchi.trade/beta/market/yex%3AUS3M)

</details>

<details>

<summary>Funding Rate Indices</summary>

[Bitcoin Cumulative Funding Index (BTCSWP) by Nunchi](https://yex.nunchi.trade/beta/market/yex%3ABTCSWP)

</details>

***

### Liquidity Is Agentic&#x20;

Liquidity on YEX is not passive. It’s managed by the Nunchi **Agentic Binned‑liquidity Manager (ABM)**.

<figure><img src="https://788773440-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAZF2BfymkD55xR0Nid8e%2Fuploads%2FmvBRq6updCarnIVXw6bO%2Fpassiveliqudityisdeadmoney.png?alt=media&#x26;token=93155328-fa41-4980-9b0d-43cdd2ee71b6" alt=""><figcaption></figcaption></figure>

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.

<figure><img src="https://788773440-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAZF2BfymkD55xR0Nid8e%2Fuploads%2FdG0lXUWtI47qF32WowqV%2Ftee-enclave.png?alt=media&#x26;token=5da6fef3-aa82-4952-af7c-cf8dcfe25305" alt=""><figcaption></figcaption></figure>

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.**