Introduction
Stabolut's USB is a delta-neutral stablecoin, distinct from traditional fiat-backed stablecoins like USDC or USDT. It is backed by crypto assets and corresponding short futures positions.
Executive Summary
Stabolut is a delta-neutral stablecoin protocol built around USB, a USD-pegged asset, and SBL, its value-accrual and governance token. The core idea is simple: the protocol runs conservative, hedged strategies (e.g. inverse perpetual shorts, funding rebates, and execution efficiencies) to generate real yield, and routes that yield through SBL to reward long-term participants while reinforcing the stability of USB. This document lays out a qualitative tokenomics design: mechanisms, flows, and incentives are defined conceptually, while exact numerical parameters are deliberately left open for a later phase of quantitative stress testing and optimisation.
SBL sits at the centre of the ecosystem. When users stake SBL, they receive veSBL (vested escrow SBL), a non-transferable receipt token that encodes both the amount staked and the time committed. veSBL is the single unit of weight for both rewards and governance. The longer a user stakes, the closer they move towards the maximum multiplier, and the more veSBL they hold. This ensures that yield distribution and voting power accrue to participants who are truly aligned with the long-term health of the protocol, rather than to short-term speculators. In practice, veSBL holders gain access to yield from protocol buybacks, higher reward tiers, governance rights over key parameters, fee reductions across the platform, and future premium membership-style benefits.
Early SBL distribution is tightly coupled to USB growth. In the initial phase, the only way to receive SBL is by committing value into USB for a minimum time period. Users who convert assets like BTC, ETH, or stablecoins into USB and keep them committed for at least one full epoch (e.g. 30 days) become eligible for SBL rewards proportional to their committed USD value. Emissions follow a BTC-inspired, decaying schedule: each epoch or band distributes fewer SBL than the previous one, making new SBL increasingly scarce over time while strongly incentivising early USB adoption and liquidity. The structure of bands, epoch length, and decay rates will be calibrated via simulations to balance growth incentives, scarcity, and long-term sustainability.
All protocol revenue flows through the Treasury, which acts as the financial brain of the system. The Treasury aggregates income from delta-neutral strategies, funding and fee rebates, and other operations, and then allocates that revenue across three main priorities: buybacks, controlled burns, and Insurance Fund provisioning. A dynamic buyback mechanism adjusts the percentage of revenue used to purchase SBL on the market based on the size of the Insurance Fund: when the fund is small, buybacks are relatively higher to keep SBL yield attractive; as the fund grows and overcollateralisation strengthens, buybacks decrease, allowing more capital to accumulate in reserves and support higher-yield strategies. On top of this, a dynamic burn mechanism aims to keep SBL’s deflation within a controlled range by adjusting burn rates over time using rolling supply data, rather than fixed, rigid percentages.
The Insurance Fund is the main protective layer for USB. It gradually builds an overcollateralised buffer by receiving a portion of Treasury revenue and holding it initially in low-risk, liquid assets. As overcollateralisation grows and crosses predefined tiers, parts of the fund can be deployed into increasingly sophisticated and higher-yield strategies (such as third-party delta-neutral products or carefully defined growth allocations), always under defined risk limits. The Insurance Fund also accumulates a small share of SBL obtained via buybacks, further aligning system safety and token value. In extreme scenarios where both reserves and Insurance Fund are insufficient to fully restore USB’s peg, SBL acts as insurance of last resort: the protocol can use or issue SBL to recapitalise the system, similar in spirit to MakerDAO-style recap mechanisms.
To guarantee smooth trading and adoption, Stabolut uses a hybrid liquidity model. Liquidity is provided on decentralised exchanges to support on-chain trading, composability, and DeFi integrations, while professional market makers manage liquidity on centralised exchanges to reduce slippage, stabilise order books, and improve execution quality. The relative allocation between DEX liquidity and market maker–managed CEX liquidity will remain flexible and be tuned over time based on real market conditions and modelling.
Finally, protocol evolution is governed by veSBL holders through a structured governance process. veSBL holders (and, where appropriate, designated delegates or the core team in early phases) can submit proposals that follow a standard format and pass through a review and validation stage before reaching a vote. Voting power is proportional to veSBL balances, and approved proposals are enacted by a controlled execution module after a security-focused cooldown period. Governance can adjust key parameters such as Treasury allocation splits, Insurance Fund strategy tiers, liquidity strategies, and staking or emission settings. Across all components—emissions, treasury flows, buyback and burn dynamics, Insurance Fund tiers, and governance thresholds—the final values and curves will be derived from a dedicated stress-testing phase using digital-twin simulations, Monte Carlo analysis, and extreme scenarios, with the overarching goal of aligning SBL value accrual, USB stability, and long-term protocol resilience.
Protocol Flow
Objectives
The goals of this documentation are multiple:
- Explaining the fundamental principles governing the token's economy.
- Defining the categories of token allocation and explaining their role within the ecosystem.
- Analyzing how these components interact within the ecosystem qualitatively.
This documentation focuses on the qualitative aspects of tokenomics, avoiding delving into quantitative details. This approach allows for adaptability in the early phases of design and facilitates precise adjustments based on subsequent stress tests and analysis.
In the next phase, we will conduct stress tests to simulate different scenarios and assess the robustness of the tokenomics. These scenarios include, but are not limited to, changes in the demand for the token, variations in the token's price due to external factors, shifts in user behavior, or economic crises that could impact the stability of the ecosystem.
Through these stress tests, we aim to identify potential vulnerabilities and enhance the resilience of the tokenomics, ensuring its sustainability and the protection of its users' long-term interests.