Glossary

D

Delta-Neutral

A strategy where the portfolio value remains unaffected by small price movements of the underlying asset. Stabolut achieves this by balancing long collateral positions with short futures positions.

F

Funding Rate

Periodic payments exchanged between long and short traders in perpetual futures markets. When the funding rate is positive, longs pay shorts. Stabolut earns this rate as a short position holder.

I

Insurance Fund

A reserve pool of assets designed to cover losses if the protocol's hedging strategy incurs a deficit (e.g., during negative funding periods) or execution failure.

S

SBL

The native utility and governance token of Stabolut.

Staking

The process of locking SBL tokens to receive veSBL, granting governance rights and a share of protocol revenue.

U

USB

The Stabolut stablecoin, pegged to the US Dollar.

V

veSBL (Vested Escrow SBL)

A non-transferable token representing staked SBL. The amount of veSBL received depends on the quantity of SBL staked and the lock duration.