World LibertyFi And UltraYield Launch New USD1 Vault

USD1 Vault Goes Live With Institutional Strategy

World Liberty Financial and UltraYield have joined forces to launch a new yield vault built around USD1, World Liberty Financial's dollar-pegged stablecoin, as the base asset. The vault is managed by Edge Capital and targets market-neutral returns across crypto markets, insulating investors from directional price risk.

USD1 is 100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents, with custody handled by BitGo. The stablecoin has surpassed $4 billion in circulation since its launch in March 2025, reflecting growing institutional appetite for the asset.

How the Strategy Works

The vault employs basis trading and funding rate capture, operating across a mix of traditional finance, centralised finance, and decentralised finance venues. According to UltraYield, execution runs across three platforms: Binance, Bybit, and Hyperliquid. This multi-venue approach is designed to harvest persistent yield from funding rate differentials and price dislocations without taking on naked directional exposure.

The strategy is a market-neutral macro approach utilising DeFi protocols, with a core focus on market-making while hedged for directional risk, combined with opportunistic trades including funding rate basis trades, cross-chain arbitrage, and inverse funding rate trades.

Edge Capital is a crypto hedge fund and liquidity provider to early-stage protocols, with DeFi and CeFi trading expertise and a market-neutral approach, managing capital for institutional investors and leading crypto foundations since 2020. The firm currently oversees around $300 million in assets under management, according to UltraYield.

The pairing of a regulated, treasury-backed stablecoin with a market-neutral institutional strategy signals a broader push to bring structured yield products to DeFi, one that bridges the gap between traditional finance discipline and on-chain capital markets.

Sources:
World Liberty Financial: USD1 Launch Announcement (BusinessWire)
World Liberty Financial Launches USD1 on Canton Network (CFOtech)
Edge Capital Background (CoinDesk)