Ticker:
sDEFENSE-PERP | Status: Testnet | Type: Synthetic (s-basket)Why This Basket Matters
Defense manufacturing depends on materials that are strategically critical and often geographically concentrated. From tungsten in armor-piercing rounds to rare earths in precision guidance systems, these commodities define military capability. Supply chain security for defense materials has become a policy priority globally. sDEFENSE provides exposure to the raw material constraints that underpin defense industrial capacity—a sector where supply disruptions have immediate strategic implications.Composition
| Commodity | Symbol | Weight | Role in Defense |
|---|---|---|---|
| Tungsten | W | 26.3% | Armor-piercing munitions, high-density penetrators |
| Neodymium-Praseodymium Oxide | NdPr | 23.7% | Permanent magnets for guidance, motors, radar |
| Uranium Oxide | U₃O₈ | 19.7% | Nuclear propulsion, power for carriers/submarines |
| Nickel | Ni | 15.8% | Superalloys for jet engines, armor plating |
| Antimony | Sb | 14.5% | Flame retardants, ammunition, lead hardening |
How It’s Priced
The sDEFENSE index value is calculated as a weighted sum of component prices: Price sources:- Oracle Provider (TBD) supplies institutional-grade commodity reference prices
- Prices normalized to USD
- Update cadence: (TBD — confirm)
- 8 decimal precision
- Chainlink-style interface
- Published by Scape keeper/relayer
Where It’s Available
sDEFENSE is available as a HIP-3 perpetual contract on Hyperliquid testnet.| Parameter | Value |
|---|---|
| Venue | Hyperliquid (testnet) |
| Contract Type | Perpetual |
| Margin Mode | Isolated |
| Fee Structure | 2× validator perps (HIP-3) |
| Deployer Fee Share | 50% |
Sector Context
Why These Commodities?
Tungsten (26.3%): The densest practical metal. Essential for kinetic energy penetrators, armor-piercing ammunition, and high-temperature applications. Supply is geographically concentrated. NdPr Oxide (23.7%): Neodymium-praseodymium oxide creates the strongest permanent magnets. Critical for precision-guided munitions, drone motors, radar systems, and countless military electronics. Uranium Oxide (19.7%): Powers nuclear submarines and aircraft carriers. The only practical energy source for extended underwater or at-sea operations without refueling. Nickel (15.8%): Essential for superalloys used in jet engines, where materials must withstand extreme temperatures and stresses. Also used in specialty armor applications. Antimony (14.5%): Used in flame retardants for military equipment, ammunition (hardens lead), and various chemical applications. Supply is concentrated and strategic.Supply Chain Dynamics
- Geographic concentration: Many defense-critical materials come from limited sources
- Strategic stockpiles: Governments maintain reserves of critical materials
- Export controls: Trade restrictions affect availability and pricing
- Long qualification cycles: Defense-grade materials require extensive certification
Roadmap: sDEFENSE → xDEFENSE
- sDEFENSE (Now)
- xDEFENSE (Q2 2026)
Synthetic price exposure
- Price-referenced via Oracle Provider (TBD)
- No physical inventory
- Available as HIP-3 perpetual
- Available on testnet
Risk Factors
Index-specific risks:- Geopolitical sensitivity: Defense spending and policy changes drive demand
- Export control risk: Trade restrictions can disrupt price discovery
- Illiquid underlying markets: Some components have thin markets
- Regulatory risk: Defense-related commodities face unique regulatory scrutiny
- Liquidation risk
- Oracle risk
- Smart contract risk
- Testnet risk