Securing the Stability of Delta-hedged Synthetic Dollars

"Synthetic stablecoins need rules and verification, not just models." - Aidas Venckunas, Risk Analyst, llamarisk Delta-hedged synthetic dollars promise capital efficiency, but can they stay stable under stress? This talk dives into Athena's real-world approach to managing CEX risk, negative funding rates, and offchain redemptions. With Lamoresk's quantitative reserve modeling and real-time verification, Ethena maintains overcollateralization and transparency even when markets break. A practical guide for anyone building or using synthetic stablecoins. --- 00:00 Intro to Ethena and Llamarisk 00:43 Why Stability Risk Matters 01:27 Operational Layers in Synthetic Stablecoins 02:06 Managing Collateral and Hedging Venues 02:53 Problems with Perp Funding Rates 03:30 Risks from Centralized Exchanges 04:15 Why Protocols Need Buffers 05:01 Simulating Drawdown Scenarios 05:45 Dynamic Rules for Risk Mitigation 06:29 Third-Party Verification and Transparency 07:01 How Ethena Proves Collateral Backing 07:41 Broader Trends in Risk-Managed Stablecoins --- Explore Upcoming Events 👇 ➣ Stable Summit III: Devconnect • Website: https://www.stablesummit.xyz/ • Email: info@stablesummit.xyz • Apply to Speak/Sponsor: https://partyactionpeople.typeform.com/devconnect2025?typeform-source=www.stablesummit.xyz ➣ Stablecoin Summit: Singapore by XREX & Unitas • Website: https://stablecoinsummit.com/ • Email: team@stablecoinssummit.com • Apply to Speak/Sponsor: https://partyactionpeople.typeform.com/stblcoin3?typeform-source=stablecoinsummit.com ➣ Blockchain Oracle Summit: Devconnect • Website: https://blockchainoraclesummit.io/ • Email: info@partyactionpeople.com • Apply to Speak/Sponsor: https://partyactionpeople.typeform.com/BOS25apply ➣ Listen to the Stable School Podcast Link: https://stableschool.org/podcast ➣ Follow Stable Summit on X Link: https://x.com/stable_summit — About: By Stake Capital Group and Party Action People, and presented by Curve Finance, Stable Summit has been gathering leaders in stablecoins almost quarterly since 2023. Our content is curated through hours of one-on-one research with the leading minds in the stablecoin space. Each program is a highlight reel of what leaders in stables are curious about in real time. Our audience consistently features the full spectrum of the stablecoin ecosystem, from DeFi protocols to institutions, from stablecoin issuers to central banks, and every llama in between.