System Overview
Hamilton operates as a two-layer digital reserve system that transforms the global carry trade into a transparent, programmable financial network.
At the highest level, it connects three layers of capital movement:
Onchain users who mint, stake, and redeem digital dollars.
Hamilton’s reserve layer, which manages sovereign and money-market exposure.
Institutional counterparties that enable real-world execution — banks, dealers, and fund structures.
Together, these layers create a complete bridge between digital liquidity and real-world yield.
The Two-Layer Model
Hamilton’s system is built on two interoperable tokens, each serving a distinct economic purpose:
USDh – the stable layer. A reserve-backed digital dollar reflecting holdings in short-term sovereign and USD money-market instruments.
sUSDh – the productive layer. A staked representation of USDh that tracks participation in Hamilton’s reserve yield.
The relationship between the two is simple: 1. Users hold USDh for stability and redeemability. 2. They stake it for sUSDh to participate in the global rewards generated by Hamilton’s reserves.
The Reserve Framework
Every USDh in circulation is backed by real-world assets held under Hamilton’s reserve management structure. These reserves are primarily invested in:
Short-term sovereign debt across emerging markets, where yields are structurally higher.
USD-denominated money-market instruments that provide liquidity and hedge stability.
Reserves are audited and attested through verified custodians and disclosed through onchain transparency dashboards.
The Flow of Value
Minting: Users deposit USDC (or other supported stable collateral) through verified channels to mint USDh. Minted USDh enters circulation as a stable, fully collateralized digital dollar.
Staking: Users may stake USDh to receive sUSDh — an onchain representation of participation in Hamilton’s reserve yield.
Reserve Deployment: Offchain, Hamilton’s reserve partners allocate pooled liquidity into short-term sovereign or institutional money markets that capture global carry trade spreads.
Yield Reflection: Yield from these operations is periodically reflected in the sUSDh supply, aligning onchain balances with offchain productivity.
Redemption: Users can convert sUSDh back to USDh, or redeem USDh for USDC at any time, maintaining liquidity and accessibility across both onchain and traditional channels.
Economic Integrity
Hamilton’s model is designed around transparency, discipline, and proof of productivity. There are no algorithms, synthetic pegs, or unverified promises — only verifiable, reserve-based yield flow.
Each unit of USDh corresponds to independently verified reserves.
Each unit of sUSDh corresponds to proportional participation in those reserves.
All operations are observable through smart contracts and public attestations.
A Bridge Between Worlds
In essence, Hamilton brings together the global yield engine of the carry trade with the programmable precision of blockchain systems.
It redefines what a reserve-backed digital dollar can be — not only stable, but productive. Not only transparent, but composable. Not only accessible, but economically expressive.
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