# Solution Overview

The concept of contango in market trading is crucial for understanding how Bond Hive optimizes its yield bearing token issuance strategies. Contango occurs when:

* Future price of a commodity is higher than the spot price
* Traders expect the commodity’s price to rise over time

<figure><img src="https://2735487775-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fg0VbGSwaHefk5eenvjvu%2Fuploads%2FimDdOepdOkR3QcHyvvYU%2Fimage.png?alt=media&#x26;token=d7a59925-e119-4e63-9fda-185becd4f066" alt=""><figcaption><p>Contango Market and basis spread</p></figcaption></figure>

## Entering Delta Neutral Strategy - Automated Workflow

Bond Hive leverages contango market condition to structure profitable investments. We do it for user by:

* Selling futures contracts
* While simultaneously buying the underlying asset in spot at its current price

Thereby securing a guaranteed profit from the difference. If this position is maintained until maturity, at which point the prices converge, allowing investors to realize a profit from the difference.

## Sustainability of Yields