Cathena

Introduction

Agent-Driven Delta-Neutral Yield Optimization Engine

Cathena inspired by Ethena is an autonomous AI agent trained to execute strategies on HyperEVM and HyperCore. The core objective is to generate stablecoin-denominated returns on Hype, BTC while simultaneously optimizing for ecosystem incentives such as Felix Points. We initially begin with maximising yield for Hype deposits, with higher capital efficiency, yield diversification.

Key Mechanisms

1. Multi-Arbitrage Framework The Cathena agent ingests data including:

   • Funding rates for Hype, Pricing data

   • Interest rate spreads between CDP and vanilla markets in Felix (e.g., feUSD, USDhl)

   Using these, it composes a workflow as follows:

   • Interest Rate Arbitrage: Borrowing stables against deposited HYPE/BTC to supply to higher-yielding venues

   • Collateral Efficiency Optimization: Maximize capital usage while minimizing CDP and slippage risk

   • HyperCore Vault: Small exposure less than 5% in our vault and delta neutral strategy ie Long/short perps vs spot Hype to harvest positive funding and provide additional yield

2. Deposit Workflow Users deposit HYPE into the vault. Upon deposit:

   • Assets are used as collateral in mix of CDP/Vanilla Felix vaults

   • Agent borrows stablecoins (e.g., feUSD, USDhl)

   • Borrowed stables are routed into yield-generating strategies based on real-time agent evaluation

   • The strategy continuously monitors yield drift to rebalance when necessary

3. Points Optimization Felix ecosystem rewards (borrow on vanilla/CDP points) are incorporated into the agent’s utility function. The agent prioritizes strategies that maximize:

   • Felix Point yield relative to capital usage

   • Reward-optimized transaction routing

   • Fee minimization while maintaining high APY

4. Agentic Architecture Unlike static vaults or heuristic-driven models, Cathena uses a feedback-driven agentic loop:

   • Environment → Signal Extraction → Strategy Evaluation → Execution → Feedback

   • It dynamically adjusts position sizes, borrowing amounts, and routing decisions based on evolving market regimes (e.g., volatility, liquidity)

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Summary Cathena offers users a hands-off way to earn optimized yield on HYPE or BTC deposits via a continually learning agent that executes multi-layered arbitrage strategies. By abstracting away strategy selection, risk management, and capital routing, Cathena delivers enterprise-grade DeFi automation with superior capital efficiency.

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