Stablecoin Protocol Resolv’s TVL Soars Above $400 Million

Decentralized stablecoin protocol Resolv has been on a tear over the last month, with its total value locked (TVL) growing from $37.4 million on Dec. 1 to $448 million on Jan. 6, according to DeFiLlama.

Resolv’s USR stablecoin has had a similar run, jumping to a $387 million market capitalization on Jan. 6 from $13.7 million on Dec. 1.

Similar in many ways to Ethena’s USDe stablecoin, Resolv uses a delta-neutral hedging approach to maintain USR’s peg to the U.S. dollar. Fully backed by Ether, the protocol buys ETH and simultaneously takes a short position on it, hedging against price fluctuations and generating yield for stakers from funding fees.

However, Resolv separates risks across two assets (USR and RLP), catering to users with different risk appetites. USR is meant for conservative users, while RLP targets higher-risk DeFi users. Meanwhile, Ethena offers unified risk exposure through a single token, USDe.

“While delta-neutral backing provides great benefits, it also comes with risks,” Resolv says on its website. “And a stablecoin is only stable until it is not. That is why we isolated these risks from the stablecoin and channeled them into a scalable tokenized protection layer, represented by the Resolv Liquidity Pool.”

The Resolv Liquidity Pool (RLP) carries higher risks but offers a far higher yield than staking USR. The USR staking pool currently offers an annual percentage yield (APY) of 12.2%. RLP, by comparison, has $64 million deposited and is currently yielding 40%.