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Renzo Finance launches an automated basis trade on Hyperliquid

Renzo Basis will initially support BTC and HYPE, aiming to generate yield from perpetual funding rates via automated spot and perp positions.

Reported · Written up by our desk · Market Structure

Renzo Protocol has rebranded to Renzo Finance and is expanding beyond restaking into onchain structured yield products, starting with Renzo Basis on Hyperliquid, according to The Block.

Renzo Basis is built to automate a basis trade, which pairs buying an asset on the spot market with taking an equal short position in perpetual futures. The structure is intended to offset price exposure, with users targeting yield from the funding rate, a fee exchanged between perpetual traders.

The Block reports that the product is designed to reduce reliance on manual setup and monitoring by using three safeguards, including a hedge guard, a yield guard, and a safety buffer. The outlet adds that the automation does not currently use AI, and that Renzo uses Hyperliquid agent wallets, also called API wallets, to run and monitor the strategy without taking custody of users' funds.

Renzo Basis will first support BTC and HYPE, with Renzo targeting similar onchain structured strategies that the company says have been limited due to operational complexity in crypto.

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