Delta-neutral
A position where price-sensitivity to the underlying asset nets to zero — long spot offset by short derivative.
Delta-neutral stablecoin strategies (e.g., Ethena's USDe) earn yield from funding / staking while remaining insulated from the underlying asset's price. Delta-neutrality is not risk-free — it transforms price risk into funding-rate risk, basis-blowout risk, and exchange / custody risk.
Related terms
- Basis tradeLong spot + short perpetual (or futures) to harvest the funding-rate differential, structurally close to delta-neutral.
- USDeEthena's synthetic dollar — collateralised by LSTs / LRTs hedged with short ETH perps.
- Funding rateA periodic payment between long and short perp holders that anchors perpetual price to spot.
- HedgeA position taken to offset risk in another position — most often via a derivative.