How Sui Plans to Beat Hyperliquid with Evan Chang

Theo CIO Iggy Iopi breaks down tokenized gold, THUSD, and yield strategies—showing how on‑chain funding, CME hedges, and tight risk controls scale a gold‑backed yield coin.

Key Takeaways

Theo tokenizes gold into TH Gold and THUSD, enabling fractional, on‑chain collateral that pays gold‑native yield, lowers custody costs, and supports composable DeFi use cases.
Yield strategy harvests the higher of futures contango or perp funding, stacks with lending income, and dynamically shifts between on‑chain venues and CME hedges for capacity.
Operationally, they hedge via CME using multiple FCMs and OTC desks, reference twice‑daily London LVMA pricing, and build alerts to monitor London‑CME basis and execution risk.
Risk and returns: gross yield ≈2.5% and investor net ≈2.2–2.3%; main risks are protocol/team execution and collateral price; gold lending often yields negligible or negative bps.
Product rollout is conservative: launched THVL, raised $100M pre‑deposit for THUSD with a $100M genesis vault cap, scaling slowly to preserve yield and safety.
Hyperliquid advantage: deep, cheap block space and high on‑chain funding rates (≈9–10%) let teams harvest funding before moving risk to CME; token incentives planned to drive network effects.

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