Collateral Pool

Composition

Resolv maintains a collateral pool consisting of the following positions:

ETH inventory

• Includes ETH and staked ETH.

• Hedged using short ETH futures.

• A portion of the ETH inventory is deployed within the ETH cluster and deposited into DeFi protocols.

BTC inventory

• Includes BTC inventory.

• Portion hedged through short BTC futures.

• A portion of the BTC is deployed within the BTC cluster and deposited into DeFi protocols.

USD-Neutral Assets

• Includes stablecoins such as USDC and USDT.

• A portion of these assets is allocated to DeFi asset clusters.

Proof of Reserves

Resolv self-reporting dashboard	https://app.resolv.xyz/collateral-pool
Third party verification made by Apostro risk curators	https://info.apostro.xyz/resolv-reserves?ref=apostro

Collateral Pool Design

For ETH and BTC inventory, hedging positions closely track the quantity of ETH and BTC, so that sensitivity of the collateral pool to changes in ETH and BTC prices is close to zero (the collateral pool forms a delta-neutral portfolio).

Collateral pool comprises on-chain and off-chain parts. Off-chain part is required in connection with maintenance of futures positions.

Protocol handles a few aspects of the collateral pool:

• Maintains futures positions

• Manages inventory allocation

• Handles staking and unstaking ETH

• Manages short-term liquidity requirements.

For price estimations of different parts of the collateral, a combination of the following price sources is used:

• Data from integrated exchanges

• Oracles networks

  • Pyth

  • RedStone