Revisiting the Idea of a Delta-Neutral Stablecoin
Quick Take
- Stablecoins are an integral part of the cryptocurrency space, with a combined market share of $150B.
- That said, most stablecoins are fraught with centralization risks or capital inefficiencies.
- Protocols such as UXD and Lemma have utilized funding rate arbitrage to create a truly decentralized stablecoin.
- However, such solutions encounter the challenges of unsustainability and/or shallow liquidity.
- This is where ideas of a DeFi-focused blockchain, such as that which Sei proposes, could be useful for such stablecoins.
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Author: Arnold Toh
