Monetrix

Monetrix issues a yield-bearing stable token whose return comes from funding rates, native to Hyperliquid L1. Hyperliquid L1 failed our chain-level vetting, so nothing settled there is reachable regardless of protocol quality; the funding-driven yield would face its own review even on an approved chain. TVL stood near $2.1M at the 2026-08-14 survey. The file reopens if the protocol deploys on an approved chain or the Hyperliquid L1 verdict changes.

Review triggers: events that reopen the verdict
• Deploys meaningful liquidity on a chain the registry approves
• The Hyperliquid L1 verdict changes

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-15.

The research file

Mechanism applicability

Monetrix issues USDM against USDC and lets holders stake into sUSDM. The protocol deploys backing into delta-neutral spot and short-perpetual positions on Hyperliquid Core, along with HLP and borrow-lend balances; funding and strategy yield are distributed to sUSDM. The mint, backing, yield and redemption paths therefore depend fundamentally on HyperEVM and Hyperliquid L1 execution.

Current observation and lifecycle

The DefiLlama protocol API read on 2026-08-15 classified Monetrix as Basis Trading and reported approximately $2.36M entirely on Hyperliquid L1. Current Monetrix documentation, app endpoints and a 2026 audit report document live USDM minting, staking and redemption. This is an active single-perimeter product and directly satisfies the shared v1 rejected-chain dossier.

Control and exit applicability

The vault and accountant mark Hyperliquid Core positions to market, while strategy operations, insurance reserves and redemption escrow mediate the claim. Funding can turn adverse, perpetual hedges face margin and auto-deleveraging paths, and redemption depends on strategy liquidity and protocol controls even where USDM targets one USDC. Those are material product risks, but none makes a Hyperliquid-settled claim reachable under the chain policy.

Why the class rule decides

All observed backing, strategy yield and redemption accounting depend on Hyperliquid L1 or HyperEVM, so the shared v1 rejected-chain dossier decides regardless of current collateralization or audit status. Reopen if Hyperliquid L1 is approved or Monetrix deploys meaningful independently accounted backing on an approved chain; then review hedge construction, funding and ADL stress, reserve and admin controls, incidents, mint/redeem liquidity and named synthetic-dollar alternatives.

Class rule

The rejected chain class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• 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

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.