# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://xsy-1.gitbook.io/xsy-main/unity-uty-overview.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.