> For the complete documentation index, see [llms.txt](https://docs.renzofinance.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.renzofinance.com/get-started/renzo-basis.md). # Renzo Basis #### What is Renzo Basis? Renzo Basis is a market-neutral strategy that earns yield on your USDC. You deposit stablecoins, and Renzo runs a "basis trade" on Hyperliquid on your behalf, directly in your own Hyperliquid account. Your funds and positions stay under your ownership the whole time; Renzo only manages the trades through a trading key that you control and can revoke at any time. **How it works** A basis trade holds two opposite positions of the same size at the same time: * **A long position**: buying the asset on the spot market. * **A short position**: shorting the same amount of that asset using a perpetual futures contract (a "perp"). Because the two positions are equal and opposite, gains on one side offset losses on the other. If the asset's price goes up or down, your overall position stays roughly flat. This is what "market-neutral" means: you're not betting on price direction. **Where the yield comes from** Perpetual futures use a **funding rate** to keep their price in line with the spot market. On Hyperliquid, funding is exchanged between traders every hour. When more traders want to be long than short, longs pay shorts. With Renzo Basis, your account holds the short side, so you collect these payments. That funding is your yield. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.renzofinance.com/get-started/renzo-basis.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.