# Overview

PiggyBank USDC (pbUSDC) is a yield bearing stablecoin providing exposure to a diverse allocation of delta neutral strategies. While a lot of other protocols rely exclusively on positive funding rate arbitrage, pbUSDC distributes yield from multiple independent revenue streams.

This diversified architecture reduces dependence on any single market condition and supports more consistent yield generation across cycles.

## Delta neutral strategies

### Perpetual Long/Short

* Long Perp / Short Perp
* Based on funding-rate arbitrage
* Executed across \~10 perpetual DEXs
* Underlying: Crypto majors (BTC, ETH, SOL, etc.) and Tokenized stocks (SPYx, TSLAx, etc.)
* Controlled average leverage, \~5x max

### Basis Trade

* Long Spot / Short Perp
* Based on Short funding-rate capture
* Executed across \~10 perpetual DEXs
* Underlying: Mid-cap Tokens and tokenized stocks
* Leverage  < 1

### PT Rate Arbitrage

* Cross-venue and cross-token PT price arbitrage at close maturity.
* Executed across \~5 yield trading platforms
* Underlying: Large-cap stablecoins with thorough due diligence on strategy transparency

## Edge

Our alpha is driven both by our team’s quantitative experience and by the trading infrastructure we have developed over the years, which is structured around three core modules:

* A decision engine identifying opportunities returning target positions
* An execution engine entering positions that optimizes entry costs by prioritizing maker execution while maintaining delta neutrality.
* A risk management engine continuously monitoring key metrics and mitigating risk (see [risk-management](https://piggybank.gitbook.io/docs/usdc-yield/risk-management "mention")).