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USB

USB is a decentralized, delta-neutral stablecoin fully backed by crypto assets and hedged with short positions. It is designed to provide a censorship-resistant, scalable, and stable form of money native to the crypto ecosystem.

Mechanism​

USB maintains its stability through a delta-neutral hedging mechanism. For every $1 of collateral (e.g., ETH) deposited, the protocol opens a corresponding short position. This ensures that the total value of the backing remains stable in USD terms, regardless of the price volatility of the collateral asset.

Key Features​

  • Delta-Neutral Stability: Backed by perfectly hedged positions.
  • Scalability: Leverages the depth of derivatives markets (perpetuals) rather than over-collateralized lending markets.
  • Censorship Resistance: Backed by crypto-native assets (ETH, BTC) rather than fiat in bank accounts.
  • Yield Bearing: Protocol yield (from funding rates) is directed to SBL stakers and the Insurance Fund, reinforcing system stability.