# Overview

### **Overview**

**Unitas** is dedicated to delivering a secure, transparent, and yield-bearing dollar stack. **USDu**, our core stablecoin, targets a robust 1 USD soft-peg through on-chain collateral plus a basket of delta-neutral strategies. Yield is streamed to **sUSDu**, the savings token, so users earn without leaving the peg.

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### **Backing Mechanism**

| Component                    | Role in Stability                                                                                                        | Notes                                 |
| ---------------------------- | ------------------------------------------------------------------------------------------------------------------------ | ------------------------------------- |
| **Decentralised collateral** | SOL, ETH, WBTC and JLP (index of SOL/ETH/WBTC/USDC/USDT) are locked on-chain; over-collateralisation > 102 %.            | Verifiable 24/7 on Solana explorer.   |
| **Delta-neutral hedges**     | Short perpetual futures on top CEX venues neutralise price risk and harvest funding-rate carry.                          | Executed via Off-Exchange Settlement. |
| **Real-world utility**       | USDu is natively spendable with the upcoming **Unitas Card**, closing the loop between DeFi yield and everyday payments. | Settlement in fiat at POS.            |

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### **Custody Model**

| Layer                             | Custody Approach                                                                                                                     | Transparency                                          |
| --------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------- |
| **On-chain vaults**               | Multisig-governed contracts hold collateral; addresses displayed live in Docs.                                                       | Everyone can self-verify balances.                    |
| **Off-Exchange Settlement (OES)** | Collateral mirrors held with **Copper**, **Ceffu**, etc., enabling hedging on CEXs while assets stay in segregated MPC cold storage. | OES balances included in monthly Transparency Report. |

Key principles: asset segregation, multi-provider redundancy, and hourly liquidity monitoring to ensure hedge capacity even in stressed markets.

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### **Security Measures**

* **Smart-contract audits** — Multiple independent firms plus standing bug-bounty.
* **Redundant oracles** — Chainlink + Pyth feeds with fallback logic to guard against outages.
* **Real-time risk engine** — Bots track funding rates, collateral ratios, and margin health; automatic deleverage/top-up before thresholds.
* **Extreme-volatility design** — Circuit-breakers and insurance fund (10 % of fee flow) cover tail events.

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### **Transparency & Reporting**

* **Monthly Transparency Report** (blog post) publishes:
  * Total collateral by asset & venue
  * Open perp hedge sizes & net delta
  * Insurance-fund and treasury balances
* **Live dashboard** shows multisig vault balances and key risk metrics.
* Road-map item: zk-attested proof-of-reserves once the ZK module is production-ready.

***

### **Why It Matters**

* **Peg robustness** — Over-collateralisation + delta-neutral hedging keeps USDu around 1 USD even in volatile markets.
* **Native yield** — Funding-rate and JLP fee carry flow through to sUSDu, turning “dollars” into an on-chain savings instrument.
* **Composability** — Fully on-chain design lets builders integrate USDu into lending, payments, and DeFi primitives.

Through these mechanisms, **Unitas** pairs advanced financial engineering with decentralised transparency, offering a secure, scalable, and user-centric dollar for the next generation of global payments and DeFi applications


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