Core Principle: Access to Positions, Not Assets
Traditional DeFi forces you to hold the exact asset you want exposure to. Want to save in Euros? You need a Euro stablecoin. Want Gold exposure? You need a tokenized commodity. This creates shallow, fragmented markets. Blend’s architecture makes it possible for Risk Architects to decouple what a user holds from what they’re exposed to. Principal can sit in deep, liquid USD strategies while a synthetic overlay transforms the portfolio’s denomination into EUR, GBP, JPY, Gold, or any other asset.Synthetic Savings
How Risk Architects can build multi-currency savings products.
Delta-Neutral Strategies
Market-neutral positions that capture spreads without directional risk.
Mathematical Models
Formal definitions, formulas, and constraints.
What Risk Architects Can Build
Deploy into any receipt token
Blend’s infrastructure allows strategies to deploy funds into any receipt token (position) on any supported chain and protocol. This includes:| Protocol | What it offers | Receipt tokens |
|---|---|---|
| Morpho Blue | Isolated lending markets with granular risk control | Supply shares, leveraged positions |
| Aave V3 | Battle-tested lending with broad asset support | aTokens (aUSDC, aWETH, etc.) |
| Euler | Modular lending vaults with flexible rates | eTokens, Euler Earn shares |
| Pendle | Fixed-rate positions via yield tokenization | PT tokens (fixed rate), YT tokens (variable rate) |
| GMX | Decentralized perpetuals and liquidity provision | GLP, GM tokens |
| Dolomite | Lending and margin trading | dTokens |
| ERC-4626 vaults | Any standard tokenized vault | Vault shares |
Risk Architects choose which protocols and assets to include in their Baskets. The Asset Registry (
@blend/assets) is the source of truth for all available assets.Synthetic savings in any denomination
By applying a notional hedge alongside USD strategies, Risk Architects can create savings products denominated in any asset class:- Fiat currencies: EUR, GBP, JPY, SGD, BRL - save in a local currency without needing a local stablecoin
- Commodities: Gold, Silver - inflation-hedged savings
- Crypto assets: BTC, ETH - exposure without holding the underlying
Delta-neutral strategies
Risk Architects can design strategies that hold long collateral and short debt in the same base asset, creating a market-neutral position that captures the spread between supply and borrow rates. Flash loans enable single-transaction setup:- Borrow via flash loan
- Swap into collateral asset
- Supply as collateral
- Borrow against it to repay the flash loan
Multi-chain execution
Strategies aren’t limited to a single chain. A user’s Safe fleet spans all supported networks, and Risk Architects can build strategies that allocate across:- Base, Ethereum, Arbitrum, Polygon, Scroll - via LiFi routing
- Botanix - for Bitcoin-native strategies via Garden
- HyperEVM - for Hyperliquid ecosystem strategies
Composable building blocks
Because each Safe is a full smart-contract wallet, Risk Architects can combine primitives in ways pooled vaults cannot:- Looping: Recursive supply-borrow to amplify spreads (e.g., supply USDC, borrow USDC, re-supply)
- Flash loans: Atomic leverage setup and teardown in a single transaction
- LP positions: Provide liquidity to DEXs and earn trading fees
- Staking: Stake assets natively (BTC via Botanix, ETH via LSTs)
- Incentive capture: Collect protocol-specific rewards (Merkl, ecosystem incentives)
- Basis trades: Capture the spread between spot and futures prices
Example Strategies
These illustrate what Risk Architects can build on the platform.Conservative: USD Money Market
A simple allocation across top lending protocols for stable returns.Balanced: BTC+ Strategy
A BTC-denominated strategy combining staking, lending, and looping.Synthetic: EUR Savings Account
USD strategies with a notional FX overlay to denominate in Euros.These are illustrative examples. Actual allocations, protocols, and returns depend on the Risk Architect’s Basket and market conditions.