Risk at Parity
Parity is a synthetic yield infrastructure. Our architecture is designed from the ground up to deliver high-yielding, crypto-native assets — with risk controls embedded at every layer of the system.
How We Manage Risk
Built-In Stability
Parity's synetheic LSTs are redeemable at par value for the underlying assets at any time. Every synthetic token is backed by yield-generating collateral.
Delta-Neutral & Pegged by Design
Through derivatives and dynamic exposure management, the protocol maintains delta-neutrality and full SOL exposure — keeping value stable in USD terms for USDC-based synthetic assets and in SOL terms for SOL-based ones.
Automatic Yield Adaptation
Our infrastructure adapts to markets in real time. When validator yields or benchmark stablecoin rates outperform market-based sources (e.g. fees, funding), Parity reallocates automatically — ensuring users always earn competitive returns.
Liquidity-First Architecture
Underlying collateral is liquid and composable. Even during market stress, collateral can be efficiently unwound with minimal cost — ensuring timely redemption.
Secure & Transparent Custody
Colalteral is held in institutional-grade, non-custodial wallets (Fireblocks). This setup minimizes both operational and custodial risk.
TradFi-Backed Fallbacks
In extreme scenarios, the protocol can shift colateral into Franklin Templeton’s tokenized treasury Benji fund, providing a crypto-to-TradFi safety rail that anchors value to regulated, USD-denominated assets.
Audited, Battle-Tested Code
All smart contracts have been audited by top-tier security firms and rigorously tested. Ongoing monitoring and structured internal reviews ensure continued protocol integrity. Check our latest aduit by Quantstamp here:
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