Recent market behavior has highlighted structural weaknesses in the stablecoin and broader DeFi ecosystem.
The October 10 volatility event triggered rapid selling across assets, several stablecoins failed to maintain their peg, and contract exploits resulted in a loss of hundreds of millions. Off-chain fund managers took directional risk instead of running market neutral strategies, which resulted in a loss of collateral. Money market lenders were affected by collateral that had been levered, rehypothecated, or reused across multiple protocols, creating correlated points of failure.
These breakdowns reflect a common problem: stablecoins and yield systems that rely on opacity, collateral rehypothecation, or leverage introduce systemic risk during stress events. The market demands a yield-bearing dollar with transparent collateral, verifiable solvency, and reliable behavior under volatility.
Unitas addresses this by issuing a digital dollar with verifiable transparency and a yield profile that outperforms other yield-bearing dollar assets.
USDu is a digital dollar issued by Unitas, collateralized by the Jupiter Liquidity Provider token (JLP). JLP consists of a diversified basket of BTC, ETH, SOL, and USDC, and accrues revenue from trading activity on Jupiter Perps. Because JLP holds spot exposure, Unitas hedges the underlying assets on perpetual markets to maintain delta neutrality. This structure isolates fee and funding income while mitigating price direction risk.
As a result, USDu behaves like a stable dollar while capturing market maker revenue from one of the most active trading systems on Solana. The JLP strategy represents only the initial phase of Unitas’s yield architecture. Additional market-neutral strategies and collateral sources will be introduced over time to further diversify income and improve yield resilience across market conditions.
JLP is the liquidity layer of Jupiter Perps. Liquidity providers deposit BTC, ETH, SOL and USDC into a shared pool. Traders on Jupiter Perps take leveraged long and short positions against this pool. When traders pay trading fees, open and close positions, or trade with price impact, the pool receives revenue 75% of which is distributed to JLP holders. The remaining 25% is used for program maintenance and ecosystem expansion.
Over time, this revenue becomes the base yield for JLP’s price appreciation. Because the pool contains a diversified basket of assets, yield does not depend on a single asset. Since liquidity is used in an exchange environment with real trading volume, JLP earns yield from organic market activity.
The role of JLP is to act as a collateral engine with real yield accrual. It is one of the first revenue-generating collateral pools powering a synthetic stablecoin.
JLP earns fees but carries spot exposure. To keep the system market neutral, Unitas shorts the same assets on perpetual markets. Long exposure in the pool is offset by short exposure on perps, which removes directional risk and leaves a fee-generating neutral position.
This is a key distinction from models that rely only on funding rates. Funding can turn negative when markets are trending downwards. Because USDu also captures trading revenue from Jupiter Perps, fees can offset negative funding periods and create a more resilient yield profile
Around 10% of protocol fees are routed into the Insurance Fund. If funding becomes negative or trading revenue temporarily decreases, the Insurance Fund absorbs the difference.
It protects USDu holders and makes the yield stream more resilient. In extreme scenarios, the Insurance Fund acts as a capital backstop to keep the system healthy without introducing systemic leverage or unsecured liabilities.
USDu collateral is held with professional custodians like Copper and CEFFU, using off-exchange settlement.
This design reduces exchange counterparty exposure because assets are not left on centralized exchanges. The system can trade and hedge while keeping custody separate from the execution layer. Users are protected from exchange failures, frozen accounts, or counterparty insolvency events because custody stays independent from active trading venues.
Trust in a stablecoin should never rely on screenshots, PDFs, or promises. This is why Unitas launched a Proof of Solvency dashboard with Accountable.
Accountable connects to custodians, exchanges, and other data sources to verify balances. Using zero-knowledge attestations and secure enclave attestations, it validates assets without revealing private strategy details.
The result is an on-chain proof that collateral fully covers user liabilities, verifiable publicly, while preserving privacy and competitiveness.
Users can view the proofs at: https://accountable.unitas.so/
This establishes a new standard for transparent, verifiable stablecoins.
The user onboarding process is quite simple:
Acquire USDu by minting or buying on a DEX
Stake USDu into sUSDu to earn yield.
Use USDu or sUSDu across Solana DeFi. (Examples include yield trading on RateX, supplying liquidity through integrations such as Kamino, or using USDu as a base asset in stable liquidity pools).
Users receive a stable dollar asset with a transparent backing structure and a predictable yield stream.
The DeFi ecosystem needs transparency, solvency, and technical resilience, especially during periods of market stress. Many yield-bearing stablecoins pursue higher returns by introducing leverage, re-hypothecating collateral, or storing assets on custodial exchanges without verifiable oversight. These tradeoffs create systemic risk for users and protocols.
Unitas takes the opposite approach.
USDu is over-collateralized, market-neutral, supported by custodial segregation, powered by real revenue, protected by an insurance fund, and secured by a cryptographic Proof of Solvency.
DeFi does not need opaque yield. It needs sustainable yield that users can trust. USDu and sUSDu are designed to provide that yield.
Recent market behavior has highlighted structural weaknesses in the stablecoin and broader DeFi ecosystem.
The October 10 volatility event triggered rapid selling across assets, several stablecoins failed to maintain their peg, and contract exploits resulted in a loss of hundreds of millions. Off-chain fund managers took directional risk instead of running market neutral strategies, which resulted in a loss of collateral. Money market lenders were affected by collateral that had been levered, rehypothecated, or reused across multiple protocols, creating correlated points of failure.
These breakdowns reflect a common problem: stablecoins and yield systems that rely on opacity, collateral rehypothecation, or leverage introduce systemic risk during stress events. The market demands a yield-bearing dollar with transparent collateral, verifiable solvency, and reliable behavior under volatility.
Unitas addresses this by issuing a digital dollar with verifiable transparency and a yield profile that outperforms other yield-bearing dollar assets.
USDu is a digital dollar issued by Unitas, collateralized by the Jupiter Liquidity Provider token (JLP). JLP consists of a diversified basket of BTC, ETH, SOL, and USDC, and accrues revenue from trading activity on Jupiter Perps. Because JLP holds spot exposure, Unitas hedges the underlying assets on perpetual markets to maintain delta neutrality. This structure isolates fee and funding income while mitigating price direction risk.
As a result, USDu behaves like a stable dollar while capturing market maker revenue from one of the most active trading systems on Solana. The JLP strategy represents only the initial phase of Unitas’s yield architecture. Additional market-neutral strategies and collateral sources will be introduced over time to further diversify income and improve yield resilience across market conditions.
JLP is the liquidity layer of Jupiter Perps. Liquidity providers deposit BTC, ETH, SOL and USDC into a shared pool. Traders on Jupiter Perps take leveraged long and short positions against this pool. When traders pay trading fees, open and close positions, or trade with price impact, the pool receives revenue 75% of which is distributed to JLP holders. The remaining 25% is used for program maintenance and ecosystem expansion.
Over time, this revenue becomes the base yield for JLP’s price appreciation. Because the pool contains a diversified basket of assets, yield does not depend on a single asset. Since liquidity is used in an exchange environment with real trading volume, JLP earns yield from organic market activity.
The role of JLP is to act as a collateral engine with real yield accrual. It is one of the first revenue-generating collateral pools powering a synthetic stablecoin.
JLP earns fees but carries spot exposure. To keep the system market neutral, Unitas shorts the same assets on perpetual markets. Long exposure in the pool is offset by short exposure on perps, which removes directional risk and leaves a fee-generating neutral position.
This is a key distinction from models that rely only on funding rates. Funding can turn negative when markets are trending downwards. Because USDu also captures trading revenue from Jupiter Perps, fees can offset negative funding periods and create a more resilient yield profile
Around 10% of protocol fees are routed into the Insurance Fund. If funding becomes negative or trading revenue temporarily decreases, the Insurance Fund absorbs the difference.
It protects USDu holders and makes the yield stream more resilient. In extreme scenarios, the Insurance Fund acts as a capital backstop to keep the system healthy without introducing systemic leverage or unsecured liabilities.
USDu collateral is held with professional custodians like Copper and CEFFU, using off-exchange settlement.
This design reduces exchange counterparty exposure because assets are not left on centralized exchanges. The system can trade and hedge while keeping custody separate from the execution layer. Users are protected from exchange failures, frozen accounts, or counterparty insolvency events because custody stays independent from active trading venues.
Trust in a stablecoin should never rely on screenshots, PDFs, or promises. This is why Unitas launched a Proof of Solvency dashboard with Accountable.
Accountable connects to custodians, exchanges, and other data sources to verify balances. Using zero-knowledge attestations and secure enclave attestations, it validates assets without revealing private strategy details.
The result is an on-chain proof that collateral fully covers user liabilities, verifiable publicly, while preserving privacy and competitiveness.
Users can view the proofs at: https://accountable.unitas.so/
This establishes a new standard for transparent, verifiable stablecoins.
The user onboarding process is quite simple:
Acquire USDu by minting or buying on a DEX
Stake USDu into sUSDu to earn yield.
Use USDu or sUSDu across Solana DeFi. (Examples include yield trading on RateX, supplying liquidity through integrations such as Kamino, or using USDu as a base asset in stable liquidity pools).
Users receive a stable dollar asset with a transparent backing structure and a predictable yield stream.
The DeFi ecosystem needs transparency, solvency, and technical resilience, especially during periods of market stress. Many yield-bearing stablecoins pursue higher returns by introducing leverage, re-hypothecating collateral, or storing assets on custodial exchanges without verifiable oversight. These tradeoffs create systemic risk for users and protocols.
Unitas takes the opposite approach.
USDu is over-collateralized, market-neutral, supported by custodial segregation, powered by real revenue, protected by an insurance fund, and secured by a cryptographic Proof of Solvency.
DeFi does not need opaque yield. It needs sustainable yield that users can trust. USDu and sUSDu are designed to provide that yield.
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Unitas LabsUnderstanding USDu: Technical Overview
The recent events within DeFi have shown that yield-bearing stablecoins must balance transparency, solvency and risk control. Many models rely on black box strategies, unverified collateral or directional exposure that creates vulnerabilities during volatile market conditions. The market has consistently demonstrated a need for a stable asset with verifiable backing and a predictable yield profile that does not depend on token emissions or market direction. Unitas was created with that premis...
Unitas LabsUnitas Monthly Report: November
Last month we focused on strengthening the transparency standards that support USDu. Market stress following the Stream collapse and the subsequent liquidity crisis demonstrated how quickly uncertainty spreads when collateral cannot be independently verified. We concentrated our efforts on building a multi-layer transparency framework that allows users to confirm solvency, overcollateralization and system behavior in real time. This report outlines the integrations completed with Accountable,...
Unitas LabsUnderstanding USDu: Technical Overview
The recent events within DeFi have shown that yield-bearing stablecoins must balance transparency, solvency and risk control. Many models rely on black box strategies, unverified collateral or directional exposure that creates vulnerabilities during volatile market conditions. The market has consistently demonstrated a need for a stable asset with verifiable backing and a predictable yield profile that does not depend on token emissions or market direction. Unitas was created with that premis...
Unitas LabsUnitas Monthly Report: November
Last month we focused on strengthening the transparency standards that support USDu. Market stress following the Stream collapse and the subsequent liquidity crisis demonstrated how quickly uncertainty spreads when collateral cannot be independently verified. We concentrated our efforts on building a multi-layer transparency framework that allows users to confirm solvency, overcollateralization and system behavior in real time. This report outlines the integrations completed with Accountable,...
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