Skip to main content

FAQ

Frequently Asked Questions​

Our FAQ aims to answer every question we've been asked on Stabolut and USB.

General Questions​

What is Stabolut?​

Stabolut is a synthetic dollar protocol built on Ethereum that provides a crypto-native solution for money, USB, alongside a globally accessible dollar savings asset, sUSB.

How is USB different from other stablecoins?​

USB is not the same as a fiat stablecoin like USDC or USDT. USB is a synthetic dollar, backed with crypto assets and corresponding short futures positions. This means that the risks implicated by interacting with USB are inherently different. It resists censorship and does not rely on traditional banking infrastructure.

What is the "Internet Bond"?​

The "Internet Bond" refers to the yield-bearing nature of the Stabolut ecosystem (via sUSB). It combines yield from staked Ethereum (or other LSTs) with the funding & basis yield from delta hedging derivatives positions.

Product & Mechanism​

How does the delta-neutral hedging work?​

For every 1ofcryptoasset(e.g.,stETH)deposited,Stabolutopensacorresponding1 of crypto asset (e.g., stETH) deposited, Stabolut opens a corresponding 1 short position on a derivatives exchange.

  • If the asset price drops, the short position gains value.
  • If the asset price rises, the collateral gains value. The net value remains stable in USD terms.

Where does the yield come from?​

  1. Staking Yield: From the underlying collateral (e.g., stETH staking rewards).
  2. Funding & Basis: From the short futures positions. In positive funding environments (which persist most of the time in crypto), shorts get paid by longs.

Can anyone mint/redeem USB?​

Direct minting and redeeming of USB is typically restricted to whitelisted market makers and authorized participants to ensure compliance and liquidity efficiency. Users can buy/sell USB on decentralized exchanges (Curve, Uniswap) or centralized exchanges.

Risks​

What are the main risks?​

  • Funding Risk: Funding rates can turn negative, meaning the protocol has to pay to keep the hedge open.
  • Liquidation Risk: If the spread between spot and futures diverges significantly (though rare for 1x hedge), or exchange solvency issues occur.
  • Smart Contract Risk: Bugs in the protocol code.

Please refer to our Risk Factors section for a comprehensive analysis.

SBL Token​

What is SBL?​

SBL is the governance token of the Stabolut protocol.

What is veSBL?​

veSBL (Vested Escrow SBL) is received when you stake SBL. It grants voting power and a share of protocol revenue (if activated by governance).