Lemma Finance (USDL)

What it is

Lemma Finance (now part of InfinityPools) is a basis-trading / delta-neutral strategy stablecoin (USDL) backed by perpetual swaps. The mechanism converts volatile collateral into a stable asset by hedging the underlying with a short perp position of equivalent size.

What I contributed

• Core contracts — basis-trading stablecoin engine.
• Periphery contracts — user-facing entry/exit paths around the core.
• LemmaSwap — a unique decentralized exchange engineered for the protocol's needs.
• Protocol integrations — Zapper.fi, ParaSwap, and Forta Network (security monitoring bots).
• Supporting libraries — including the LemmaSwap SDK.

Tooling

Foundry and Hardhat for testing and deployment. Custom TypeScript/JS scripts for the deployment pipeline and contract-level smoke tests.

Why it mattered

Delta-neutral stablecoins are one of the more elegant mechanisms in DeFi: collateral remains volatile but the user-facing asset is stable, because the protocol absorbs price exposure via hedging. The engineering challenge is making that mechanism cheap, predictable, and safe under adversarial conditions.