Risks

Dollar Investing vs. Fiat and RWA-Backed Stablecoins

As a dollar investing, USDi operates under a fundamentally different model compared to fiat-backed and real-world asset (RWA)-backed stablecoins. While traditional stablecoins are backed by reserves held in banks or financial institutions, USDi derives its value through a delta-neutral hedging strategy, ensuring stability while maintaining capital efficiency.

Seablocks is committed to transparency. It is crucial to highlight the risks associated with USDi, the measures in place to mitigate these risks, and the continuous efforts to further enhance the protocol’s resilience.

This section will cover the following key risk factors:

• Funding Risk

• Liquidation Risk

• Custodial Risk

• Exchange Failure Risk

• Backing Assets Risk

• Stablecoin-Related Risk

• Margin Collateral Risk

Each of these risks has been carefully assessed, and Seablocks has implemented strategies to reduce their impact wherever possible. Additionally, the protocol remains adaptive, regularly reviewing market conditions and refining its approach to ensure long-term stability and security.

Seablocks welcomes community feedback to enhance transparency and risk awareness. If you believe any risk has not been adequately addressed, we encourage you to reach out through official channels to contribute to ongoing improvements in risk management.