POPA ReconBuilding index-tracking assets on top of options instead of debt
Building index-tracking assets on top of options instead of debt Instead of borrowing against ETH collateral (like current stablecoins), split 1 ETH into a pair of synthetic options. At maturity, a slow/delayed oracle decides how the ETH is divided between the two pieces - they always add up to exactly 1 ETH, with no debt or liquidations possible Much safer (no need for fragile real-time price feeds, no forced selling during crashes), but requires regular rebalancing to keep the asset tracking the target price (e.g. $1), which creates some costs and gradual drift over time https://ethrese…
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