Depeg Risk

Infinity's main unit of account is USD

  • All FX pairs (ETH/USD, WBTC/USD, USDC/USD, etc.) will be quoted against USD as the counter currency and, as such, all positions are subject to token/USD exchange risk

  • Positions are quoted in USD and settled in the base currency (ETH, WBTC, USDC, etc.)

For stablecoin/stablecoin pairs (USDC/USD, USDT/USD, DAI/USD), the depeg risk is also a risk users are exposed to, where you are borrowing stablecoin A and lending stablecoin B, and stablecoin B depegs, thereby resulting a decrease in your PV(Assets) in USD terms.

While Infinity has factored in depeg risk via macro hedges and buffers, we would not be insulated against a materially large depeg.

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