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xUSD

Delta-neutral stablecoin

About

APY: 34.4%

TVL: $M

Tokenized inverse short perp position matched with USDC in UniV4.

Key features:

  • Non-custodial with instant redemption.

  • Yields from both funding rates and trading fees.

  • Price stability via the xUSD-USDC pool that is also used for an efficient ETH <> USDC swaps with no IL for LPs.

Conditional rebalances:

  • Time-based: once per week

  • Price-based: after price change >20%

Learn more

Performance:

Performance:

Performance against BTC, %

The backtested performance over the last 12 months (01.12.2023 - 01.12.2024) is 34.4% against USDC. The strategy shows all-weather performance with the highest returns during the fast upside and volatile market periods during which we collect much larger trading fees.

Risks:

The main risk for this strategy is liquidity shortage resulted from a long/short positions imbalance. To mitigate it - our app-specific sequencer targets stability dynamic funding rate and trade balancer.


Where trade balancer routes trades between xUSD and xETH vaults targeting optimized trade execution and equilibrium between long/short positions open interest.


There is no liquidation risks for this vault as we operate with inverse perp 1x short positions.

Risks:

Risks:

The main risk for this strategy is liquidity shortage resulted from a long/short positions imbalance. To mitigate it - our app-specific sequencer targets stability dynamic funding rate and trade balancer.


Where trade balancer routes trades between xUSD and xETH vaults targeting optimized trade execution and equilibrium between long/short positions open interest.


There is no liquidation risks for this vault as we operate with inverse perp 1x short positions.