> For the complete documentation index, see [llms.txt](https://docs.zirodelta.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zirodelta.com/modules/yield-engine.md). # Yield Engine The Yield Engine is the module that puts idle dollars to work. It runs a market-neutral strategy for a shared pool, and holders of the pool's shares own a part of the pool's value. {% hint style="warning" %} **In development.** Not audited and not open to customer funds. Proving on the project's own capital has not started. {% endhint %} ## How it is designed ### One pool, shares for everyone in it Money in the pool is managed as one position, not one position per user. When the pool opens, depositing USDC gives you [wzdUSD](/tokens/wzdusd.md), a share of the pool. The pool's net asset value divided by the number of shares gives the share price. Income raises the share price; losses lower it. ### The strategy The engine holds an asset on spot and shorts the same amount on a perpetual futures market, so price moves on one side are offset on the other. What remains is the funding payment that, in positive-funding markets, flows from longs to shorts. See [Delta-neutral explained](/modules/yield-engine/delta-neutral-explained.md) for the mechanics and the risks. ### Two tranches * **Main pool (senior):** the shares that holders own. * **First-loss buffer (junior):** capital from the project that absorbs losses before they reach the main pool. Gains are shared across the pool. Losses hit the first-loss buffer first. The buffer is limited: losses larger than it reach the main pool. ### Safety switches If the system detects that the pool's backing falls short of what it should be, it freezes new activity rather than carrying on. A failure to check counts as a failure, so the switch fails closed. ## Custody * The key that can move funds out of the pool's trading account is **held off-server**, not on Zirodelta's infrastructure. * The server trades with a separate key that the exchange itself limits to placing, changing and cancelling orders. Withdrawals signed with it are rejected by the protocol. * Payouts from the pool need a co-signature from the off-server key. See [Custody and keys](/trust/custody.md). ## The path to opening 1. **Prove it on the project's own capital,** on a public address anyone can watch. 2. **Independent security audit** of the contracts. 3. **Legal review.** 4. Only then, accept customer funds, with a cap that starts small. ## Status In development. The strategy and the vault contract are built and tested on testnet. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.zirodelta.com/modules/yield-engine.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.