# Stablecoins Evolve With Delta-Neutral Strategy Amid Crypto Volatility
Even amid the sharp volatility of the cryptocurrency market, stablecoins, which aim to maintain stable value, are evolving to include decentralization and asset efficiency. Particularly notable is the rise of delta-neutral strategy-based stablecoin models. Projects such as Ethena and Resolv are pioneering new models that simultaneously satisfy decentralization and capital efficiency through this innovative approach.
# Traditional Stablecoins Vulnerable Due to Dependence on Conventional Assets
Currently, most stablecoins maintain their value by being collateralized with traditional assets such as fiat currency or U.S. Treasuries. However, this reliance on centralized assets makes them structurally vulnerable to regulatory changes and fluctuations in the financial system. Consequently, there is a growing need for more decentralized alternatives leveraging cryptocurrency-based collateral. Recently, efforts to secure both profitability and stability of crypto-collateral through delta-neutral models have been gaining traction.
Ethena implements a single-token model, while Resolv employs a dual-token structure to realize delta-neutral strategies. Ethena’s stablecoin, USDe, uses ETH as collateral and combines it with short derivative products to maintain a value of $1, regardless of ETH price fluctuations. Additionally, USDe provides users with stable returns through separate revenue generation mechanisms.
In contrast, Resolv separates risk through its dual-token structure. USR, a stablecoin maintaining value independent of ETH price changes, targets risk-averse investors. For those seeking higher returns, the RLP token is available. Resolv maximizes stability by keeping 75% of its collateral on-chain and using the remaining assets for derivative positions.
# Can Decentralized Stablecoins Enhance Capital Efficiency?
Delta-neutral based stablecoins from projects like Ethena and Resolv have the potential to reduce reliance on traditional centralized models, increase capital efficiency, and further invigorate the decentralized finance (DeFi) ecosystem. These projects focus on transparent on-chain transactions, asset profitability, and decentralization, providing optimized financial solutions tailored to users with different risk preferences.
As the role of stablecoins continues to expand, the growth of delta-neutral stablecoins is expected to further strengthen the decentralized cryptocurrency ecosystem and improve asset utilization.
