> For the complete documentation index, see [llms.txt](https://xsy-1.gitbook.io/xsy-main/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://xsy-1.gitbook.io/xsy-main/unity-uty-overview.md).

# Unity ("UTY") Overview

### A Dollar-Referenced Digital Asset for Native On-Chain Yield

Unity is a digital synthetic dollar designed to simplify access to crypto-native yield. It functions as an interface between user collateral and a set of yield mechanisms.

#### How Unity Works

When a user mints UTY, their collateral interacts with a series of rules-based strategy modules, such as:

* Delta-hedged derivatives constructions
* On-chain lending markets
* Liquidity provisioning mechanisms
* Dollar-referenced structured yield vaults
* Other risk-bounded, capital-efficient strategies

Modules operate automatically. Unity behaves as an on-chain digital asset defined by its protocol mechanics. UTY holders do not have ownership rights over specific underlying assets.