Aegis
  • Get Started
    • Introduction
    • Modern Money Problems
    • Aegis Solution
    • How It Works?
  • Overview
    • Profit Generation Mechanism
    • Profit Distribution Mechanism
    • Peg Stabilization Mechanism
    • Off-exchange settlement
    • Real-Time Transparency
    • Aegis Insurance Fund
    • Mint Security Layer
    • Scalability
    • Liquidity
    • Security
  • Risks
    • Counterparty Risks
    • Stabilization Risks
    • Operational Risks
    • Investment Risks
    • Regulatory Risks
  • Aegis FAQ
    • How can I buy YUSD?
    • How can I get my earned YUSD?
  • How can i stake YUSD?
  • Tokens
    • YUSD Stablecoin
    • sYUSD Stablecoin
    • Aegis Governance (AEG)
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  1. Risks

Stabilization Risks

YUSD maintains stability through a delta-neutral strategy, hedging BTC positions with coin-margined (COINM) BTC futures. This approach insulates YUSD from Bitcoin price volatility, ensuring the stablecoin's value remains pegged to the US dollar. The protocol's transparent real-time dashboards allow for the 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.

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Last updated 6 months ago