Monetrix

Summary

Ketju does not approve Monetrix under its class rule for protocols on unapproved chains: its USDM token runs only on Hyperliquid L1, which Ketju reviewed and did not approve. Monetrix issues a stable token whose yield comes from funding rates. Ketju does not approve anything that settles on Hyperliquid L1, however well the protocol is run. On an approved chain, the funding-rate yield would still need its own review. DefiLlama reported about $2.1M on Aug. 14, 2026. Ketju will review Monetrix again if it deploys on an approved chain or if Ketju changes its verdict on Hyperliquid L1.

Review triggers
• Deploys liquidity of meaningful size on a chain Ketju approves
• Ketju changes its verdict on Hyperliquid L1

Ketju checks this memo every night and opens a review if its venues or files show a warning or a cited document changes. The first confirmation is due 2026-11-15.

Research

How it works

Monetrix issues USDM against USDC and lets holders stake it for sUSDM. The protocol places the backing in delta-neutral spot and short perpetual positions on Hyperliquid Core, along with HLP and borrow-lend balances. Funding and strategy yield go to sUSDM. Minting, backing, yield and redemption therefore all depend on HyperEVM and Hyperliquid L1.

Size and holdings

DefiLlama’s protocol API on Aug. 15, 2026 classified Monetrix as Basis Trading and reported about $2.36M, all on Hyperliquid L1. Monetrix’s current documentation, app endpoints and a 2026 audit report describe live USDM minting, staking and redemption. The product is active, runs on one chain, and falls under the class rule for protocols on unapproved chains.

Who controls it

The vault and its accountant value the Hyperliquid Core positions at market. Strategy operations, insurance reserves and a redemption escrow stand between the holder and the backing.

Losses and withdrawals

Funding rates can turn against the strategy. Perpetual hedges face margin calls and auto-deleveraging. Redemption depends on strategy liquidity and protocol controls, even though USDM targets one USDC. These product risks are serious, and they do not change Ketju’s verdict on a claim that settles on Hyperliquid.

Class rule

All the backing, strategy yield and redemption accounting depend on Hyperliquid L1 or HyperEVM. The class rule for protocols on unapproved chains therefore applies, whatever the current collateral or audit status. Ketju will review Monetrix again if it approves Hyperliquid L1, or if Monetrix places meaningful backing, with separate accounts, on an approved chain. That review would cover how the hedge is built, funding and ADL stress, reserve and admin controls, incidents, mint and redemption liquidity, and named synthetic-dollar alternatives.

Sources

Each claim above comes from one of these sources. Where Ketju could not verify a number, the memo states that.

• Monetrix: protocol introduction · primary · accessed 2026-08-15
  Supports: USDM, sUSDM, Hyperliquid native, USDC backing, yield-bearing stable token
• Monetrix: delta-neutral strategy · primary · accessed 2026-08-15
  Supports: spot position, short perpetual, funding yield, delta neutral, Hyperliquid Core
• Monetrix: protocol architecture · primary · accessed 2026-08-15
  Supports: vault, accountant, redemption escrow, insurance fund, HyperEVM controls
• Monetrix: redeem USDM · primary · accessed 2026-08-15
  Supports: USDM redemption, USDC, redemption timing, fees, exit
• Monetrix: audits and contracts · primary · accessed 2026-08-15
  Supports: audit, contract addresses, security review, current deployment
• DefiLlama: Monetrix survey record · secondary · accessed 2026-08-15
  Supports: current TVL, Hyperliquid L1 perimeter, Basis Trading category, survey observation

The asset and the chain

This memo covers the protocol. A position also holds an asset and settles on a chain. Whichever of the three holds the most power over the position decides who can freeze it. These tables describe control and do not judge quality.