Stabilization Risks

USDa maintains stability through a delta-neutral strategy, hedging BTC positions with coin-margined (COINM) BTC futures. This approach insulates USDa from Bitcoin price volatility, ensuring the stablecoin's value remains pegged to the US dollar. The protocol's transparent real-time dashboards allow for monitoring of reserves and market positions, providing users with visibility into the stability mechanisms. Additionally, the Aegis Insurance Fund offers a financial buffer against extreme market conditions, covering potential losses during periods of negative funding rates.