Resonance Finance

Resonance Finance explores the concept of financial amplification, where economic feedback loops enhance token dynamics over time.

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Categories

  • 01. 🛠️ Public Goods

Description

Project Name

Resonance Finance

🔍 Description

Resonance Finance is a DeFi protocol on Hyperliquid that combines game theory with dual-treasury mechanics to create a sustainable, compounding flywheel.Users mint RSN (backed by HYPE) and simultaneously receive xRSN, which represents a claim on the Yield Treasury. RSN is always redeemable against the Backing Treasury, while xRSN captures the compounding returns of the Yield Treasury. This design solves the classic “death spiral” of Ponzi-style protocols by ensuring every mint, redeem, and loop action grows the system’s treasuries and rewards long-term holders.

🛠️ How It Works

At its core, Resonance Finance operates two treasuries:

  • Backing Treasury: A conservatively managed vault ensuring every RSN token is redeemable for HYPE.
  • Yield Treasury: A separate, actively managed vault generating higher APY through lending, liquidity provision, and partner strategies.

When users mint RSN, they also receive xRSN, which represents a claim on the Yield Treasury. Fees from minting and redeeming are split between treasuries, liquidity incentives, and the team. The Yield Treasury compounds over time, splitting profits between reinvestment, buybacks, and contributions to the Backing Treasury.

Built-in looping mechanics allow users to leverage RSN and xRSN positions by borrowing HYPE and re-minting, amplifying their exposure. External integrations with money markets extend this design, allowing holders to borrow stablecoins or redeploy capital without exiting their position. The result is a sustainable flywheel: exits and redemptions strengthen backing per token, while continuous yield generation grows long-term value.

💻 Demo

Loom Introduction

https://www.loom.com/share/3f320b48b922426eacfaa277e8bf623e?sid=15fb80b3-3499-4b2f-b8e0-09421d958ebf

📂 Project Links

·  Testnet dApp: https://resonance-fe.vercel.app/ 

·  Code (Front End): https://github.com/Cooops/resonance-fe

·  Code (Back End): https://github.com/0xAppo/resonance-backend

·  Docs: https://resonance-finance.gitbook.io/resonance-finance

👥 Team

·  @0xdefidegen – Research and Curriculum Lead at Yieldschool, with prior consulting experience for projects across Arbitrum, Berachain, and HyperEVM.

·  @ninejobs – previous Treasury Manager of L2DAO, with extensive experience in on-chain treasury management and DAO operations.

·  Dev Team – a team of three builders who successfully launched and managed a money market on Arbitrum. The team prefers to remain private but is willing to dox directly to the foundation. They have previously doxxed to the Arbitrum Foundation as recipients of Arbitrum grants.