# srmHYPER

Senior mHYPER is a liquid, yield-bearing derivative of mHYPER that provides low-risk exposure to Hyperithm’s multi-chain stablecoin yield strategy. It is designed to deliver stable and predictable yield, with built-in protection against underlying strategy risks. srmHYPER offers a floored yield, benchmarked to the supply-weighted average of USDC/USDT lending rates on Aave v3 Core, plus a 3% risk premium - while still retaining uncapped upside participation in mHYPER performance. Any shortfall to this minimum guaranteed yield, along with underlying strategy & credit risks, is absorbed by the junior tranche, which provides explicit first-loss protection to srmHYPER holders.

srmHYPER always earns a share of the yield generated by the protocol on the pooled mHYPER collateral. Its yield has a floor equivalent to the benchmark rate ensuring uncapped upside exposure to mHYPER APY with minimum guaranteed yield and first-loss protection provided by the junior tranche. In extreme scenarios, srmHYPER APY will be equivalent to the mHYPER APY.

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<summary>Mint</summary>

Users can mint srmHYPER by depositing mHYPER/USDC/USDT. The amount of srmHYPER received is determined by the real-time srmHYPER/USD exchange rate minus any applicable minting fees by Midas.

At the current stage of protocol implementation:

* mHYPER and USDC/USDT can be used to mint srmHYPER through the Strata UI.
* Minting fees on Strata are currently waived.
* srmHYPER minting is temporarily paused when the senior coverage ratio falls below the min. coverage threshold.
* srmHYPER can also be acquired on secondary markets using any asset on DEXs.

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<summary>Redeem</summary>

When srmHYPER is redeemed, the user receives mHYPER/stablecoins based on the srmHYPER/USD exchange rate, minus any applicable redemption fees.

At the current stage of protocol implementation:

* srmHYPER can be redeemed for mHYPER and USDC through the Strata UI.
* 0–5 bps redemption fee is applied depending on the srmHYPER coverage level. The applicable fee is displayed on the UI prior to confirmation.
* mHYPER redemptions are processed instantly, while USDC redemptions follow a  < 3 days cooldown period, consistent with Midas's mHYPER redemption period. USDC can be claimed in the portfolio section.
* srmHYPER can also be traded for other assets on DEXs.

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The srmHYPER [Dashboard](https://app.strata.markets/market/mHYPER?action=buy\&tranche=srmHYPER) on the Strata app displays the current srmHYPER/USDC exchange rate, APY, coverage, and market cap, along with full historical data. All metrics are updated in real time, giving users a clear and accurate view of srmHYPER's performance at any moment.
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