> ## Documentation Index
> Fetch the complete documentation index at: https://docs.nexio.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Yield Strategies

> Introduces borrower strategy categories that may support facility repayment, including CME basis trades, delta-neutral funding strategies, and market-making activity.

Every Nexio Series represents a single, borrower-specific yield strategy.

These strategies generate predictable BTC returns for lenders while providing borrowers with efficient, fixed-rate credit for established, market-neutral trading activities. Each Series is operated by one verified borrower under fixed terms, clear covenants, and continuous on-chain monitoring.

Here are some illustrative examples of the types of strategies borrowers may use to generate yield for lenders:

| Strategy                 | Description                                                               | Example                                                                                                                                                                                                                                                        |
| ------------------------ | ------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| 1. CME Basis             | Captures the premium between spot BTC and futures on regulated exchanges. | If spot BTC trades at \$100,000 and the 3-month CME future trades at \$106,000, a borrower buys BTC spot and sells the future. When the contract expires and prices converge, the \$6,000 spread becomes locked-in profit (forming the yield paid to lenders). |
| 2. Delta-Neutral Funding | Arbitrage perpetual futures funding rates across exchanges.               | If a borrower holds 1 BTC spot and shorts a perpetual future paying 0.02% funding every 8 hours, they collect steady BTC payments from long traders. Over a year, this can compound into \~10–15% annualized yield shared with lenders.                        |
| 3. Market-Making         | Provides two-sided liquidity and earns spread income from trading volume. | If BTC trades between \$99,950–\$100,050, a borrower posts buy orders at \$99,950 and sell orders at \$100,050. Each completed trade earns a \$100 spread. Repeated thousands of times per day, these small spreads compound into a predictable return.        |

We'll go into greater depth on each strategy in the subsequent sections.

Each approach is market-neutral, meaning returns are generated from structural inefficiencies (like price spreads or funding differentials), not speculative bets on BTC’s direction. They therefore enable a consistent, transparent yield, which makes them suitable for fixed-rate BTC credit.

Each Series discloses key details upfront:

* **Borrower Type:** Which kind of institution does the capital support (e.g., market maker, basis trader, or delta-neutral desk).
* **Collateralization:** How much BTC or equivalent collateral is pledged and what structural protections apply.
* **Expected APR Range:** Typical yield range based on historical market conditions.
* **Strategy Mechanics:** How returns are generated and what market exposures exist.

This transparency lets lenders select Series aligned with their risk and liquidity preferences.