Parity Finance Overview
  • Overview
    • Parity Finance Overview
  • Guides
    • How to Earn with Parity
    • How to Mint & Redeem Parity Dollars
    • How to Stake
    • How to Earn Free Parity Tokens
      • Parity Token Overview
    • How to Earn 20% USD Return
  • Yield Sustainability
    • Yield Overview
    • Hedged JLP Strategy
    • Solana staking & funding fee arbitrage
    • Yield Determination
  • Ensuring PUSD stability
    • Risk Management overview
    • Market Risks
      • Delta Neutrality risk
      • Risk of Negative Returns
    • Liquidity Risks
      • Liquidity Risks
      • Peg Stability Risk
    • Operational Risks
      • Custodial Risk
      • Counterparty Risk
      • Smart Contract Risk
    • Liquidation Risks
  • Useful Resources
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  1. Ensuring PUSD stability

Liquidity Risks

Liquidity Risks involve the ability of Parity to swiftly meet PUSD redemptions 1:1 against USDC. Parity ensures this through its hedged JLP strategy, allowing it to disassemble JLP into liquid blue-chip cryptocurrencies when needed. Additionally, the peg stability is maintained through a portion of reserves being kept in liquid USDC for immediate redemption purposes.

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Last updated 4 months ago

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