UXD Protocol
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What is UXD Protocol?

UXD

UXD Protocol is an algorithmic stablecoin backed 100% by a delta neutral position using derivatives. UXD is issued on Solana. By integrating with derivative dex protocols such as mango markets, we create a delta neutral position to back the stablecoin. As a result, the stablecoin is decentralized, stable, and capital efficient. UXD Protocol solves the stablecoin trilemma. The stablecoin also has native yield from the funding rate that is paid out directly to holders of UXD.

Decentralized

UXD Protocol is non-custodial. Users can mint/redeem UXD without permission. UXP token holders will have voting rights, which enables them to have a stake in the protocol. This will ensure that UXD is controlled by UXP token holders.

Stable

UXD is pegged to the USD. Since it is backed 100% by a delta neutral position, users will always be able to redeem 1 UXD for 1 USD. If UXD deviates from the USD for any reason, traders will arbitrage the price difference with zero risk and return it to the peg.

Capital Efficient

Users can mint 1 UXD with 1 USD worth of crypto assets, which means that it has 100% capital efficiency. UXD protocol does not require over collateralization, which makes it capital efficient compared to other crypto native stablecoins.

Native Yield

When the funding rate is positive, holders of UXD will receive the funding rate generated from the delta neutral position. UXD will be sent directly to your wallet. The insurance fund will also receive part of the positive funding rate. When the funding rate is negative, the insurance fund will pay the negative interest rate, ensuring that holders of UXD will not have to pay the negative rate.
Last modified 5d ago