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siddhant
@siddhant98
Ethena Keeps Risk In-House. Resolv Throws it to The Crowd đ Both protocols mint ETH-backed, delta-neutral stablecoins â but their approach to risk couldnât be more different. Letâs break it down: Ethena Finance Approach - Model: centralized and controlled. - Maintains a ~101% collateral ratio â efficient, tightly managed. - Houses risk in a $60M insurance fund. - The fund includes $USDtb, $USTB, and $USDS. - Minting and redeeming $USDe is gated, whitelisted & KYCâd users only. - During stress events, only insiders can stabilize the peg via arbitrage. Itâs capital-efficient, but the tradeoff is centralized control over access and risk management.
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siddhant
@siddhant98
Resolv Protocol Approach It flips Ethena's scriptđ What if we stake some of the ETH deposits to use the yield to incentivize the market to underwrite $USR?đ¤ Thatâs the role of $RLP â Resolvâs risk + yield-bearing token. - Any $ETH collateral above 100% flows into the RLP pool. - RLP is tokenized buffer capital earning high APY, currently ~15.88%. - In return, RLP holders underwrite USRâs risk: liquidation losses, negative funding, CEX blowups. - RLP yield adjusts dynamically to keep the system solvent. It earns almost 2x the APY of $stUSR but takes on significantly more risk. â ď¸ In this design: - $RLP = real-time, market-priced risk exposure. - $stUSR = safer, stable yield. $USR = truly decentralized and on-chain â zero CeFi exposure. Resolv = decentralized reinsurance Ethena = private insurance Both aim to protect the peg. One does it with tight internal controls. The other lets open markets absorb volatility.
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