# Cash-and-Carry Strategy

# Strategy Overview

This strategy uses a delta-neutral position on the HYPE token with two key components:

Long Position: Invest $75,000 in a Pendle Principal Token (PT) for HYPE, representing a fixed yield of 12% APY. The PT token locks in yield on HYPE, providing a steady income stream.
Short Position: Open a leveraged short position on HYPE perpetual contracts with $25,000 capital at 3x leverage (equivalent to $75,000 exposure) on a decentralized perpetual futures exchange (Perp DEX). The short position offsets the long exposure, aiming to achieve delta-neutrality and capture a high funding rate of approximately 30% APR.

Together, the longs and shorts offset price risk on HYPE while generating income from fixed PT yields and high perpetual funding payments.

# Capital Allocation Summary

Position	Capital	Leverage	Effective Exposure	Yield / Funding Rate APY
Pendle PT Long	$75,000	1x	$75,000	12% APY (fixed yield)
Perp Dex Short	$25,000	3x	$75,000	~30% APR (funding rate)

# APR Calculation

# Step 1: Pendle PT Yield (HYPE)

$75,000 × 12% = 9,000 annual yield from HYPE PT token

# Step 2: Perpetual Short Funding Payments

Position size on perp = $25,000 × 3 = 75,000
Funding received from short position = $75,000 × 30% = 22,500 annual

# Step 3: Combine Yields and Capital

Total capital deployed: 100,000
Total annual return: 9,000 + 22,500 = 31,500
Overall APR:

\frac{31,500}{100,000} = 31,5\% \text{ APR}

# Strategy Characteristics

Delta Neutral: Long and short positions offset price movement risk in HYPE token.
Yield Generation: Income generated from fixed PT yields on the long side plus funding payments on leveraged short.
Leverage Use: 3x leverage on the short position to match long exposure.
Risk Management: Active monitoring and rebalancing to maintain delta-neutrality, manage funding rate changes, and mitigate liquidation risk.
Capital Efficiency: Optimizes returns by combining fixed income and leveraged perp funding on HYPE token.

# Summary

This delta-neutral cash-and-carry strategy on HYPE token combines $75k in yield-bearing Pendle PT tokens at 12% fixed APY with a 3x leveraged $25k short perpetual position capturing ~30% funding APR, delivering an overall estimated APR of about 31% on $100k principal, while minimizing directional price risk.

APR estimates are based on current market data for HYPE PT yields and perpetual funding rates in 2025.