> ## Documentation Index
> Fetch the complete documentation index at: https://docs.melt.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Melt Assets

> Native HIP-1 spot tokens with full economic exposure and automatic total return

## What are Melt Assets?

Melt Assets are native HIP-1 Spot Tokens deployed on HyperCore. They represent 1:1 backed tokenized versions of real-world and digital assets. Unlike wrapped ERC-20 tokens on other L2s, Melt Assets are native primitives of the chain.

### Key Characteristics

<CardGroup cols={2}>
  <Card icon="bolt" title="Native Execution">
    HIP-1 tokens live directly on HyperCore (Layer 1). They are not smart contract wrappers but native primitives.
  </Card>

  <Card icon="clock" title="Sub-second Settlement">
    Trades settle with same latency as native USDC/HYPE transactions — under 0.2 seconds.
  </Card>

  <Card icon="puzzle-piece" title="Full Composability">
    Compatible with the entire Hyperliquid ecosystem including potential margin and collateral integrations.
  </Card>

  <Card icon="shield-check" title="1:1 Backed">
    Every Melt Asset in circulation is backed by verified collateral locked in source chain vaults.
  </Card>
</CardGroup>

## Asset Standards (HIP-1)

All Melt assets are deployed following the HIP-1 native token standard. This means:

* Tickers are acquired through Hyperliquid's HIP-1 auction mechanism (e.g., `QQQ`, `TSLA`, `GOLD`)
* Token parameters (decimals, display name, max supply) match underlying asset specifications
* Trading occurs on the native CLOB, not AMMs or synthetic markets

## Total Return (Dividends)

Melt Assets representing dividend-paying securities provide full economic exposure to corporate actions and income distributions through an **Accumulating (Net Total Return)** model.

### How It Works

Rather than distributing cash dividends, Melt uses the industry-standard accumulating model:

1. **Dividend event occurs** — the underlying stock pays a dividend
2. **Issuer reinvests** — the regulated issuer (e.g., Ondo, Backed) receives funds, deducts withholding taxes, and reinvests net proceeds into the collateral pool
3. **Token appreciates** — since Melt Assets are 1:1 representations, they inherit this value accretion automatically

### Example

| Timeline       | Value                                     |
| -------------- | ----------------------------------------- |
| Initial state  | 1 QQQ = 1 QQQ share                       |
| After dividend | Issuer reinvests net dividend on Ethereum |
| Post-dividend  | 1 QQQ = 1.01 QQQ shares                   |

### Benefits

* **Zero maintenance** — no need to manually claim dividends or pay gas fees
* **Compound growth** — dividends automatically compound into positions
* **Tax efficiency** — yield captured as unrealized PnL (price appreciation) rather than cash distribution

<Note>
  You do not receive a separate "check" for dividends. Instead, your token becomes "heavier" in value over time, automatically capturing the Net Total Return of the asset.
</Note>