September 29, 2022, 11:31AM EDT
• 12 min read

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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