Summary
This proposal seeks to add two new vaults to the USP backing framework: Morini StockMarketTRBasisTrade Vault and Morini FXArbUSDTRY Vault.
The Morini StockMarketTRBasisTrade Vault provides exposure to a regulated, delta-neutral basis trade strategy that captures pricing discrepancies between Turkish equities listed on Borsa Istanbul and their corresponding Single Stock Futures (SSF). Returns are generated through arbitrage opportunities while maintaining hedged market exposure.
The Morini FXArbUSDTRY Vault provides tokenized access to Balsa Market Making Fund (BMMF), a delta-neutral strategy focused on capturing spreads between USD/TRY rates across Turkish crypto exchanges and traditional banking rails. The strategy generates returns from spread capture and FX carry opportunities while maintaining continuous currency hedging.
The proposal also establishes maximum allowance limits for both vaults within the USP backing framework.
Rationale
The addition of these vaults expands USP’s exposure to institutional-grade, market-neutral strategies that generate returns through arbitrage and relative-value opportunities rather than directional market risk.
The Morini StockMarketTRBasisTrade Vault captures basis spreads between Turkish cash equities and their corresponding futures contracts. Each futures position is paired with an offsetting equity position, while currency exposure is fully hedged, allowing returns to be realized in USD without taking equity market or foreign exchange risk. The underlying investment vehicle is an SPK-regulated fund (ISIN: TRYVVGS00891), providing a regulated framework for executing the strategy.
The Morini FXArbUSDTRY Vault provides tokenized access to the Balsa Market Making Fund (BMMF), which captures spreads between Turkish crypto markets and fiat banking infrastructure. Through T+0 arbitrage and T+1 carry opportunities, the strategy seeks to generate stable returns while maintaining a delta-neutral profile. Importantly, this vault represents the tokenized and transparent implementation of the BMMF Turkey Stablecoin FX Arbitrage Strategy, which is already part of USP backing today. The vault structure provides improved transparency and operational efficiency while maintaining exposure to the same underlying strategy.
Under this proposal, 10% of USP reserve backing will be allocated to the Morini StockMarketTRBasisTrade Vault, with a 20% maximum allowance established within the backing framework.
Additionally, 55% of USP reserve backing will be allocated to the Morini FXArbUSDTRY Vault, with a 70% maximum allowance established within the backing framework.
Together, these additions strengthen USP’s backing by increasing exposure to regulated, transparent, and market-neutral yield strategies while maintaining a diversified and risk-aware reserve structure.
USP Reserve Backing Max Allowance Addition
| RATE | CRYPTO | TYPE | Details |
|---|---|---|---|
| 70% | Morini FXArbUSDTRY Vault | On Chain | USP - Yield Optimized Stablecoin |
| 20% | Morini StockMarketTRBasisTrade Vault | On Chain | USP - Yield Optimized Stablecoin |
USP Reserve Backing Distribution Pre Proposal:
| RATE | CRYPTO | TYPE | Details |
|---|---|---|---|
| 57% | BMMF Turkey Stablecoin FX Arbitrage Strategy | On Chain | https://www.balsafinance.com/ |
| 27% | Staked USDx | On Chain | https://www.axis.to/ |
| 10% | Brix Money wiTRY | On Chain | https://brix.money/ |
| 4% | USD AI sUSDai | On Chain | https://usd.ai/ |
| 1.5% | Midas mF-ONE | On Chain | https://midas.app/mfone |
| 0.5% | USDC | On Chain | https://www.usdc.com |
USP Reserve Backing Distribution Post Proposal:
| RATE | CRYPTO | TYPE | Details |
|---|---|---|---|
| 55% | Morini FXArbUSDTRY Vault | On Chain | USP - Yield Optimized Stablecoin |
| 25% | Staked USDx | On Chain | https://www.axis.to/ |
| 10% | Brix Money wiTRY | On Chain | https://brix.money/ |
| 10% | Morini StockMarketTRBasisTrade Vault | On Chain | USP - Yield Optimized Stablecoin |