Introduction
Stables Labs builds an innovative stablecoin infrastructure protocol that redefines the future of finance. Our next-generation platform seamlessly bridges DeFi, CeFi, and TradFi, offering decentralized, secure, and bankless solutions for stablecoin issuance.
Backed by industry leaders and leveraging state-of-the-art integrations of crypto and real-world assets, Stables Labs is at the forefront of the financial revolution. To date, blue-chip crypto investors have entrusted us with 45 million in growth capital at a 275 million valuation.
Our flagship product, USDX, is a delta-neutral stablecoin backed by centralized finance (CeFi) basis trade positions. Its staked counterpart, sUSDX, enables users to earn the underlying yield through an appreciating exchange rate relative to USDX.
Type: Collateral deployment
Authors: Stables Labs Team
Motivation
Unlike other delta-neutral stablecoins that primarily focus on blue-chip assets like BTC and ETH, USDX taps into the entire investable universe of crypto assets to capitalize on funding rate arbitrage opportunities, unlocking the potential for higher yields.
Moreover, the assets backing USDX do not interact with third-party DeFi protocols. This design choice enhances agility during extreme market conditions by reducing exposure to liquidity constraints and minimizing additional smart contract risks.
sUSDX is a leading delta-neutral stablecoin, currently ranked No. 2 by TVL in the “Basis Trading” category on DeFi Llama.
As such, listing sUSDX as a collateral asset on Compound ARB offers several strategic advantages:
1. Expanding Collateral Options: Adding sUSDX would diversify Compound’s collateral offerings and mark the first yield-bearing, delta-neutral stablecoin available on these Arbitrum markets. This would allow users to unlock additional liquidity by leveraging their existing yield-generating stablecoin positions.
2. Minimized Liquidation Risk: Since sUSDX is a USD-pegged, yield-bearing stablecoin, using it as collateral in stablecoin markets presents minimal liquidation risk. Both the collateral and borrowed assets are denominated in USD, enabling lower-risk leverage strategies.
3. Increase Compound’s Borrowing Demand: By adding sUSDX as a collateral, Compound enables sUSDX-backed leveraged farming positions, which could attract greater borrowing demand for the relevant stablecoin markets. This would drive higher utilization of Compound’s loan book and increase supply rates for lenders.
Important Links
- Website: https://stableslabs.com/
- Twitter: https://x.com/StablesLabs
- Current Marketcap: ~$669M
- Coinmarketcap, Coingecko; Blockexplorer link and contract address:
- Audits: Audit | usdx.money
Next Steps
We invite the community to give their feedback and recommendations for the asset.