Introduction

Rhadow is a delta-neutral Bitcoin yield vault on Starknet. It generates yield by capturing funding rate payments from perpetual futures while maintaining zero price exposure to BTC.

The Strategy

┌────────────────────────────────────────────┐
│              User Deposits USDC            │
│                     │                      │
│         ┌───────────┴───────────┐          │
│         ▼                       ▼          │
│    Buy Spot wBTC          Short BTC Perp   │
│    (Long +1 BTC)          (Short -1 BTC)   │
│         │                       │          │
│         └───────────┬───────────┘          │
│                     ▼                      │
│              Net Delta = 0                 │
│         (No price exposure)                │
│                     │                      │
│                     ▼                      │
│        Collect Funding Payments            │
│        (Shorts get paid by longs)          │
│                     │                      │
│                     ▼                      │
│            Yield to Depositors             │
└────────────────────────────────────────────┘

Why It Works

Perpetual futures use funding rates to keep prices aligned with spot:

• When funding is positive, longs pay shorts
• BTC perps have positive funding ~70-80% of the time
• Rhadow holds a short position → collects these payments

The long spot position hedges the short, so vault value stays stable regardless of BTC price.

Key Numbers

Metric	Value
Vault Standard	ERC-4626
Share Token	rUSDC (6 decimals)
Underlying	USDC
Leverage	1x (no liquidation risk)
Min Liquidity	20% of TVL

Integrations

Protocol	Purpose
Extended DEX	BTC perpetual futures (shorting)
AVNU	DEX aggregator (spot wBTC swaps)

Quick Links

• How It Works - Detailed strategy explanation
• Architecture - Technical design
• Deployed Addresses - Contract addresses