Ticker:
sENERGY-PERP | Status: Testnet | Type: Synthetic (s-basket)Why This Basket Matters
The energy sector sits at the intersection of legacy fossil fuel systems and emerging clean energy infrastructure. Both require specific material inputs—crude oils for refining and petrochemicals, rare earths for wind turbines, polysilicon for solar panels. sENERGY captures both sides of the energy equation. Rather than betting on one energy future versus another, the index provides exposure to the materials that will be constrained regardless of how the transition unfolds.Composition
| Commodity | Symbol | Weight | Role in Energy |
|---|---|---|---|
| Brent Crude | Brent | 25% | Global light sweet crude benchmark |
| Mars Crude | Mars | 20% | Heavy sour crude for complex refineries |
| Naphtha | Naphtha | 15% | Petrochemical feedstock, gasoline blending |
| Neodymium-Praseodymium Oxide | NdPr | 20% | Wind turbine permanent magnets |
| Polysilicon | Polysilicon | 20% | Solar cell production |
How It’s Priced
The sENERGY 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
sENERGY 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?
Brent Crude (25%): The global benchmark for light sweet crude oil. Prices nearly all international oil trade. Remains essential for transportation, heating, and petrochemicals regardless of transition pace. Mars Crude (20%): Heavy sour crude benchmark for the US Gulf Coast. Complex refineries are optimized for heavy crudes; this grade captures a different segment of the oil market than Brent. Naphtha (15%): The key feedstock for petrochemical production. Plastics, synthetic fibers, and countless chemicals start with naphtha. Also used for gasoline blending. NdPr Oxide (20%): Rare earth oxides essential for the strongest permanent magnets. Every wind turbine contains hundreds of kilograms of rare earth magnets. Also used in EV motors. Polysilicon (20%): The raw material for solar cells. Solar capacity additions drive polysilicon demand. Production is energy-intensive and geographically concentrated.Supply Chain Dynamics
- Oil market depth: Brent and Mars are liquid benchmarks with extensive derivatives markets
- Naphtha-crude spread: Refining economics determine naphtha availability
- Rare earth concentration: NdPr supply is geographically concentrated
- Solar buildout pace: Polysilicon demand tracks solar installation targets
Transition Thesis
The sENERGY composition deliberately spans traditional and transition energy:- Traditional (60%)
- Transition (40%)
Brent + Mars + NaphthaOil and petrochemicals remain essential for decades under most transition scenarios. Even aggressive decarbonization requires continued fossil fuel use for:
- Aviation and maritime transport
- Petrochemical feedstocks
- Baseload power in developing economies
- Transition period energy security
Roadmap: sENERGY → xENERGY
- sENERGY (Now)
- xENERGY (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:- Oil price volatility: Crude markets are highly volatile and geopolitically sensitive
- Transition uncertainty: Policy changes affect both traditional and clean energy demand
- Correlation breakdown: Components may decouple during market stress
- Geographic concentration: Polysilicon and NdPr have concentrated supply chains
- Liquidation risk
- Oracle risk
- Smart contract risk
- Testnet risk