the pit
One vault under every market.
The Pit is a single HYPE vault that takes the other side of every Shortcap market.
Depositors receive PIT shares, priced at the HYPE the vault holds divided by the shares outstanding.
The Pit earns 50% of every trading fee and the losses of traders who close or get liquidated below their entry.
In exchange it pays the profits of traders who close above their entry, so a one-sided winning crowd is a drawdown for depositors.
It is Elysium's native HYPE yield product: no stablecoin, no wrapper, one asset in and the same asset out.
tvl
share price
fee income, 7d
open exposure
ledger
- fees earned, all time
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- received from losing traders
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- paid to winning traders
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risk
Depositors take the other side of every trade. The Pit can lose HYPE.
Per-market insurance funds, the 5x leverage cap and open-interest caps limit the damage. They do not remove it. Testnet software, unaudited.