Synthetic Dollar Protocol: Standard Money offers a synthetic dollar called USDsd, which is designed to be stable, scalable, and censorship-resistant. Unlike traditional stablecoins like USDC or USDT, USDsd is not backed by fiat reserves but rather by a delta-hedging strategy involving crypto assets and corresponding short futures positions. This approach aims to provide a crypto-native solution for money that isn't reliant on traditional banking systems.

Standard Money offers yield to holders of sUSDsd through its Delta Neutral mechanisms. This yield comes from staking rewards and funding rates from perpetual futures positions, providing an attractive annual percentage yield (APY). Standard Money operates on a decentralized framework with no central issuer holding reserves. Its stability is maintained through a delta-hedging strategy involving crypto assets and futures, aiming for a crypto-native solution. This potentially reduces the risk of centralized control or mismanagement of reserves.

Standard Money uses a sophisticated delta-hedging strategy to peg USDsd to the dollar. This involves holding long positions in crypto assets (like ETH) while shorting futures, which can theoretically provide stability even during market fluctuations if managed correctly. Standard Money represents a newer, more innovative approach to stablecoins, potentially appealing to those interested in DeFi and looking for new financial primitives. Our model evolves with the DeFi ecosystem.

Delta Hedging: Standard Money uses a "delta-neutral" strategy where it holds long positions in Ethereum and Bitcoin while simultaneously taking short positions in their perpetual futures. This is intended to maintain the stability of USDsd's value against the US dollar. The yield from these strategies, including the funding rates from the short positions, contributes to the rewards offered to sUSDsd (staked USDsd) holders.

While Standard Money presents an innovative approach to stablecoins, it involves risks such as those associated with delta hedging in bear markets, centralized risk from the platforms that hold the derivative contracts, and the sustainability of high yield offerings.