# Why BasisX ?

Most people in crypto still think of perps as “betting on price.”

That’s only half the story.

Behind every perp sits a cashflow: funding.

Billions move through funding every day, yet traders can’t trade it directly - they only feel it as a holding cost.

At BasisX, we asked: what if funding itself were the market?

That’s why we’re building on HIP-3 at Hyperliquid.

HIP-3 unlocks something new: builder-defined perp markets that don’t have to track coin price.

We’re using it to launch Funding Rate Perps - frBTC, frETH, frHYPE, frPUMP - where the underlying isn’t the coin, it’s the cumulative funding index.<br>

### How it works

We settle to an hourly Funding Index (the “realized” funding stream), while the trading tape shows the expected funding in $/day. The gap between what the market prices and what gets realized is your edge. Longs win when funding runs positive/less negative than priced; shorts win when it flips more negative.

**In short**: we’re turning the hidden cashflow behind perps into a tradable asset.

### Why it matters

This creates a new class of rate markets on-chain.\
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• Hedging for vaults & funds that live with funding volatility.\
• Speculation on the heartbeat of perp markets, not price.\
• New yield venues - think interest-rate swaps in TradFi, but crypto-native.

Of course, oracles matter. BasisX uses multi-source aggregation, smoothed marks, on-chain circuit breakers (staleness & deviation), and permissionless keeper monitoring - so funding perps reflect reality, not manipulation.<br>

### Our thesis

Perp markets were the start.

HIP-3 + BasisX is a framework for new synthetic markets — funding rates today; yield curves, volatility indices, real-world interest rate products, and even macro prints tomorrow.

Perps gave crypto 100x liquidity.\
Funding perps can give crypto its interest rate markets.

We’re extending this to bridge on-chain and off-chain yield — tokenizing real-world assets like Treasuries and bond ETFs (TLT, BND) and integrating staked yield tokens like stETH, kHYPE, and others. These create liquid, perpetual markets around the global cost of capital — whether it’s the U.S. 10-year, Ethereum staking, or emerging DeFi yields.

We’re starting with a testnet: **frpBTC and** **BOND**(BOND PERP)— with full UI (wallet connect, charts, orderbooks, mockUSDC faucet, leaderboards, points etc).

This is the foundation of crypto’s native yield curve — a unified layer for trading, hedging, and discovering interest rates across both real-world and on-chain economies.