XUSDStable
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XUSDStable

$XUSD: A Fair Launched Innovative Decentralized Stablecoin Protocol

TL;DR $XUSD is a Fair Launched Partial-Collatetalized Stabecoin.

What is XUSD

XUSD is a partial-collateralized stablecoin with a novel stability mechanism, and unlike other over-collateralized or fully algorithmic stablecoins, XUSD employs a partial-collateralized model, which means parts of XUSD supply is backed by collateral and parts of the supply is algorithm controlled, this makes XUSD capital efficient and truly stable:

  • Capital Efficient: No over-collateralization
  • Stable: Partially backed by the assets in collateral pools, less reflexivity, avoid “death spiral”

How Does XUSD Work

XUSD protocol is a two token system: the stablecoin XUSD and the share token XUS. The system works as follows:

1. Dynamic target collateral ratio according to XUSD price

  • When XUSD price is over the threshold (1+δ), the system decreases the target collateral ratio
  • When XUSD price is below the threshold (1- δ), the system increases the target collateral ratio
  • Collateral ratio starts at 100% and updates every hour at a step of 0.25%

2. Mint & Redeem

  • Users mint XUSD with collateral token and XUS, the ratio between the collateral token and XUS is determined by current target collateral ratio, e.g. Current collateral ratio is 80%, to mint 100XUSD, Alice has to put $80 worth of DAI and $20 worth of XUS into the DAI collateral pool, XUS is burned during the minting process.
  • Users can also redeem their XUSD, its the opposite process of minting, during redemption, you burn your XUSD and get back the collateral and XUS.

3. Buyback & Recollateralize

  • Buyback: When the effective collateral ratio is above the target collateral ratio, users can burn their XUS and get the excess collateral in the pool.
  • Recollateralize: When the effective collateral ratio is below the target collateral ratio, users can put collateral into the pool and get XUS plus a 0.75% bonus.

4. Mint/Redeem Fees

  • 0.7% minting & 0.3% redemption fee at launch, decrease to zero gradually
  • Gathered to contract XUSDFeePool
  • Fees will be used to buyback XUS or distributed to XUS holders

5. Initial Collateral Pools:

  • WETH pool
  • DAI pool
  • More to come: BAC, MIC, AMPL, etc.

To fully understand how XUSD works, please refer to our documentation: https://docs.xusd.money

Fair Token Distribution

All share tokens (XUS) are minted as a reward of the liquidity program, there is no private sale, no pre-mining, only 4% of the reward is sent to the team address for continuous development and marketing.

Fair Distribution

  • 10 million total supply
  • No private sale & No pre-mining
  • All XUS is minted as a reward for liquidity farming
  • 4% staking rewards to dev address for development and marketing
  • Only 500 XUS & 500 XUSD minted at genesis to bootstrap liquidity

XUS Staking Rewards

  • 500k total supply
  • Reward rate halves every month, first-month reward: min. 100k, max. 300k
  • Collateral ratio(CR) boost
    — No boost when global CR is 100%
    — 3x boost when global CR is 0%
    — 3*(1-CR) boost when global CR is between 0% and 100%

Initial staking pool weights:

  • XUSD/DAI LP pool: 20%, less risky, less weight
  • XUS/XUSD LP pool: 40%, risky pool
  • XUS/ETH LP pool: 40%, risky pool

Future Visions

The team will control the admin key at the early stage of the protocol, but it will only be used to adjust protocol parameters, perform contract upgrades, add new collateral/staking pools, we cannot withdraw funds or mint additional tokens.

When the protocol is stable enough, we will set the owner_address to a burn address, and transfer the timelock admin to a multi-sig address controlled by community members.

The team will stay with the protocol as it grows, we will be working on improving user experiences, fostering the adoption of XUSD in the DeFi ecosystem, and extend the protocol itself, ideas including but not limited to:

  • Lending platform
  • Partial-collateralized synthetic assets: Mint/Redeem Apple stock tokens with ETH(or other collateral) and XUS, buy/sell them with $XUSD

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https://xusd.money

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