Solution Design Overview

The Stabolut protocol architecture is designed for security, scalability, and transparency.

Core Components

1. Collateral Vaults: Smart contracts holding user deposits.
2. Off-Exchange Settlement (OES): Integration with providers like Copper to hold assets in cold storage while mirroring balance to exchanges for hedging, eliminating direct exchange custody risk.
3. Hedging Engine: Off-chain bots and on-chain logic that execute short positions to maintain delta neutrality.
4. Mint/Redeem Facade: User-facing contracts for converting assets to USB.
5. Staking Contract: Manages sUSB and veSBL.