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Similar to other CDPs, such as DAI, UXD will manage a "native lending module" that will function by minting newly created UXD into the supply pools of various overcollateralized lending markets in order to (i) influence interest rates (ii) generate yield.
Functionally, this means that UXD Protocol can "mint" new UXD stablecoin into these lending pools in order to help control interest rates on UXD overcollateralized borrowing, by varying the supply of the lending pool. This is because on most borrow/lend platforms, the interest rate is purely a function of the "Utilization Rate" or the percent of supplied assets that have been actually borrowed. Moreover, since these newly minted UXD stablecoins do no enter circulation unless borrowed on an overcollateralized basis, the process of native lending is logically the same as the standard overcollateralized minting process for other stablecoins like DAI or RAI.