# 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="/files/EZ7OPbFoVjGklk98Affw" 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


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