Introduction

USX is an over-collateralized stablecoin implementing multiple minting modules including global-pool, vault, and LSR. USX's dollar peg is mainly dictated by a hybrid interest policy that can efficiently improves USX's liquidity on secondary market by adjusting its lending and borrowing rates on supported protocols. Powered by the LSR module, USX is also 1:1 tradable with other supported stablecoins directly through dForce Trade.

Stablecoin is the Holy Grail of crypto. Decentralized stablecoin experiments have gained strong momentum with comprehensive iteration of mechanism and tokenomics. Today, stablecoins have seen huge adoption over other crypto assets, and will eventually evolve into a multi-trillion-dollar market.

With centralized stablecoins dominating the market, a great number of decentralized stablecoins have been making robust growth in market cap and user adoptions over the past year.

dForce has embarked on our stablecoin and DeFi journey since late 2019, from the first pilot meta-stablecoin USDx to the over-collateralized stablecoin USX. We believe there are several necessary conditions for a decentralized stablecoin to become successful, mainly the price peg and expansion of user cases beyond self-incentivizing.

USX is the most important DeFi primitive within the dForce’s protocol matrix, starting off with an over-collateralization design, where supported assets can be used as collaterals to mint USX within the respective approved LTV ratio (similar to DAI). However, USX distinguished itself from other over-collateralized stablecoins in several aspects:

  • Flexible and efficient minting models. USX can be minted through 1) Vault (single collateral & risk-isolated); 2) borrowing from supported lending protocols (pool-based & multi-collateral & market-driven rates) directly; 3) 1:1 swap with supported stablecoins (LSR).

  • Omni-yield stablecoin: sUSX implements a unified and consistent yield generation mechanism across multiple blockchain networks. This means that users can earn saving rates on their assets uniformly, regardless of which blockchain they are using.

  • Protocol controlled liquidity to support scenarios covering credit granting and multiple use cases. This feature is particularly useful to facilitate protocol-to-protocol interactions, i.e., to seed liquidity into USX bridges and stablecoin swap pools.

  • A hybrid interest rate policy. USX can be minted with 1) fixed interest rates under the Vaults model. Different collaterals can enforce different interest rates through multiple Vaults, adjustable through governance voting. 2) range-bound market interest rate powered by the PDLP (Protocol-Direct-Liquidity-Provision) module through controlling USX's supply in the secondary market.

  • LSR (Liquid Stability Reserve) module enables 1:1 swap between USX and a number of supported stablecoins, allowing arbitragers to bypass marketing slippage with 0% fees for minting and redeeming USX on dForce. It plays an important role in keeping USX pegged 1:1 with the US dollar.

  • Multichain liquidity conduit. USX can be minted natively on all deployed chains, with cross-chain-enabled liquidity capability. This positions USX as the only stablecoin that can serve as a cross-chain bridge with liquidity guarantee (powered by the PDLP module), allowing users to move USX across supported chains with zero slippage and uncapped limit. Stacked with Swap and Lending, users can move any crypto assets across different chains with zero slippage and minimized liquidity cap (only subject to USX’s liquidity on destination chain). For example, if you swap asset A to USX on Chain X, bridge USX to Chain Y and swap it back to asset A, you won’t be capped by bridge liquidity – this is completely untenable to fiat-back stablecoins like USDC, USDT, etc.

  • Decentralization. USX is 100% decentralized with DF holders governing the protocol, including but not limited to parameter setting, liquidity operation, onboarding of new collaterals, new feature implementation, etc.

How to Get USX?

USX is supported on a number of DEXes on different blockchains and L2s:

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