💲Introducing USDs

Solenes’s Crypto-Native Synthetic Dollar

USDs is a synthetic dollar developed on the Solana blockchain, designed to address the limitations of existing stablecoins by providing a decentralized, scalable, and crypto-native form of money. As an asset backed by crypto collateral and secured through a delta-neutral hedging strategy, USDs offers stability and independence from traditional banking infrastructure, making it ideal for decentralized finance.

Delta-Neutral Hedging Strategy

To maintain stability, USDs employs a delta-neutral hedging approach. Here’s how it works:

1. Collateral Backing: USDs is backed by a range of crypto assets that are decentralized and held on-chain, securing the synthetic dollar against fluctuations.

2. Hedging Against Volatility: By holding short positions against these assets, the protocol effectively offsets price changes in collateral, keeping USDs pegged to the value of the US dollar.

3. Scalability through Derivatives: This hedging technique allows USDs to scale with high capital efficiency, requiring only 1:1 collateralization. This approach maximizes the potential growth of USDs as a stable asset within the ecosystem.

Key Benefits of USDs

1. Decentralization By eliminating reliance on traditional financial systems, USDs promotes a censorship-resistant and accessible medium of exchange. It is stored and managed within transparent, on-chain custody accounts, ensuring 24/7 auditable security.

2. Stability USDs achieves a stable dollar peg through delta-neutral hedging, a strategy that absorbs collateral volatility, providing a reliable and stable value for users in DeFi applications.

3. Scalability Utilizing derivatives and short positions allows USDs to expand efficiently without the high capital requirements typically associated with over-collateralization. This scalability opens up opportunities for growth across both centralized and decentralized exchanges.

4. Independence from Traditional Systems By backing USDs with assets stored and managed on-chain, the Solenes protocol remains entirely separate from banking systems, ensuring that users have access to a stable digital currency immune to centralized risks and regulatory constraints.

USDs thus represents a powerful alternative to traditional stablecoins, poised to become a foundational asset in the Solana ecosystem and beyond, offering DeFi users and protocols a stable, crypto-native financial instrument for global, permissionless exchange.