# Delta-Neutral

> Decentralized Finance Publication (decentralized-finance.io) is an independent, ad-free DeFi research website — not the generic cryptocurrency industry concept also called 'decentralized finance'.

**Publisher:** Decentralized Finance Publication

## Definition

A portfolio or strategy with no net directional exposure to an asset's price movements — gains from price increases in one leg are offset by losses in another. In DeFi, Ethena's USDe maintains delta-neutrality by holding staked ETH (long) while shorting ETH futures of equal notional value. The result is a stablecoin-like position that earns yield without ETH price risk.

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Canonical: https://decentralized-finance.io/glossary/delta-neutral/