Who is the next Ethena? A document to introduce you to two major Arbitrage strategies, stablecoin protocols USDX and Resolv

After the coin is listed on the Stable Coin protocol USUAL, it has maintained a strong trend. This has also shifted market attention to the field of Stable Coin. This article will introduce two Stable Coin protocols, USDX and Resolv, which are similar to Ethena and use Arbitrage strategy to profit. It will also share their features and how to participate in the Airdrop.

How to safely obtain annualized returns? Sustainable contract gives birth to fee Arbitrage

The concept of Arbitrage is to hold a spot position and simultaneously open a short contract position of the same size to hedge. Since the spot position is equivalent to a long position, holding a short position can ensure that the value of the position remains roughly unchanged. In a bull market, you can earn funding rates from it, and the annualized return on the Ethena official website is about 10% before the deadline. Arbitrage is also known as funding Arbitrage or funding rate Arbitrage.

For example: holding 10,000U of spot $BTC, and holding a short position of 10,000U of $BTC. The coin safety BTC rate predicted by Coinglass before the deadline is approximately 10.95% annually, which means that with the position size unchanged, one can earn about 1,095 U from the short position of 10,000 multiplied by 10.95% in a year.

The team has a history of misconduct, and careful assessment is required before participation.

The USDX protocol raised a financing of 45 million euros from Dragonfly丶NGC Ventures, UOB Venture, Generative Ventures, BAI Capital丶Epoch Capital on November 29, with a valuation of up to 275 million euros. From the investors to the team members, it can be inferred that the main team is from China. However, the founder Yang Zhou has previously founded the Stable Coin protocol Hope.money, and the final result was not very good, so there may be some doubts about the team's experience.

However, the advantage of USDX lies in the hot spot of the Stable Coin track and the partnership with BNB Chain. It is well known that coins urgently need to use DeFi to boost BNB Chain and even the price of BNB. USDX has a cooperative relationship with the liquidity staking protocol ListaDAO on BNB, which can also release the liquidity of the staking.

Unlike Ethena, USDX adopts a multi-coin Arbitrage strategy as its support, while Ethena focuses on high market value coins such as BTC and ETH. Comparatively, USDX may have higher liquidity risks, but it has a more diverse revenue stream. Unfortunately, USDX does not provide specific information about the coins and cooperating exchanges involved in the operations, which is relatively opaque.

Is it worth participating in the savings game? TVL has reached 5.3 billion RMB

This type of Stable Coin project is nothing more than a saving game. By linking the wallet on the official website, you can exchange USDT or USDC for USDX. Each $USDX can earn 1.5 points per day, and pledging to $stUSDX can earn an additional 1 point. In addition, there are some Galxe tasks on the official website's Airdrop page that can earn points.

Although providing liquidity for USDX can earn 1~2 times the points, the author recommends depositing $sUSDX in ListaDAO and borrowing $lisUSD. Similar to the concept of Stable Coin arbitrage, it activates funds. But remember to switch the wallet to the BNB chain at the beginning. The USDX points activity will last for eight weeks from December 3rd, and there is still time to participate. As of the deadline, USDX's TVL has reached 530 million.

Improving the Ethena mechanism, $USR and $RLP protect each other.

The Resolv team is from Russia and has received funding from Delphi Digital, with the amount and valuation undisclosed. Resolv has launched the Stable Coin $USR, and the official website claims that each $USR equivalent to 1 US dollar is backed by assets of over 1.1 US dollars, with 0.7 US dollars being fully traceable on-chain. However, for users, they can mint $USR 1:1 using USDT or USDC, so there is no significant efficiency issue in terms of funds.

Unlike Ethena, Resolv has an additional $RLP (Resolv Liquidity Pool) coin as a safeguard. Resolv defines $RLP as a leveraged yield liquidity coin that absorbs the risk of Delta-neutral strategies. $RLP is used to protect $USR from market and counterparty risks (such as short position liquidation). To attract users to mint $RLP, $RLP coin can receive higher interest rewards.

Resolv currently only holds $ETH and staked coins hooked to $ETH for liquidity, and holds short positions on $ETH related trading pairs. The Resolv treasury can be checked on the website, and what is worth mentioning is that currently about 30% of the futures positions are established on Hyperliquid, which means that even short positions can be queried, relatively transparent.

More importantly, Resolv is expected to go live with the future HyperEVM, providing stable coin options other than USDC for HyperEVM. The author believes that this approach is very attractive.

The 4th period event 50% bonus points only left four days

It is understood that Resolv will launch a governance token $RESOLV during the first quarter TGE, with functions including:

As the voting rights of governance proposals, it covers matters such as adjustments to fund strategies, approval of new integration solutions, and allocation of funding grants.

Maintain alignment of interests with trading platforms, liquidity providers, DeFi protocols, and other long-term partners of the protocol.

Used to distribute national treasury coin to vulnerability bounty programs and other community-supported protocol projects.

Regarding the Airdrop, as of the writing of this article, Resolv's fourth phase of the loyalty program still has 4 days remaining, during which you can earn an additional 50% loyalty points. The rules for the next phase may be different. By using the invitation link, the invitee can earn an additional 20% loyalty points. It is also recommended to use an address that has interacted with Hyperliquid and Dinero, as this can earn an additional 10% loyalty points. To sum up, you can earn a total of 80% loyalty points. In addition, holding the Genesis NFT can increase it by 25%, but the current floor price is 0.55 ETH, which may be more suitable for large holders.

Point Mission:

Hold $USR Stable Coin: Earn 30 points per $USR per day, while providing liquidity for $stUSR, you will earn 5 points

Hold $RLP coin: Earn 10 points for every $RLP held each day

The part of the position is currently only open to the Ethereum mainnet, but will soon be launched on the Base chain.

In addition, liquidity is provided in protocols such as Pendle, Spectra, and Euler, and holding YT earns 30, 20, and 10 points per dollar respectively. It is noteworthy that Euler provides a $stUSR market, which also earns 5 points. Although users who purchase YT have won big in Usual, it should be reminded that such operations are risky.

However, for the average person, the simplest way is to provide liquidity on DEX such as Aerodrome, Curve, Uniswap, and Balancer. The links to each liquidity pool are available on the official website's dashboard. As of the deadline, Resolv's TVL reached 350 million.

Who is the next Ethena in this article? A piece to introduce you to two major Arbitrage strategies, Stable Coin protocols USDX and Resolv, which first appeared in Chain News ABMedia.