xUSD

Discover an algorithmic stablecoin XUSD pegged to the USD, deployed on the CrossFi Chain, and backed by a collateral mechanism.

xUSD Token

xUSD is a decentralized, CrossFi-native stablecoin issued through the CrossFi xApp DeFi platform. It is designed to maintain a 1:1 peg to the US Dollar using a collateralization system that leverages a combination of on-chain and off-chain mechanisms to ensure stability and liquidity.

To obtain xUSD, users must deposit their assets as collateral at a minimum ratio of 300%. This means that to mint 100 xUSD, a user must lock at least $300 worth of XFI (the native coin of the CrossFi Chain) within the protocol. The minted xUSD can be used for various purposes, including asset storage and purchasing other tokens.

If the collateralization position falls below a healthy threshold—specifically, when the value of XFI drops below 200% of the minted xUSD—the position is liquidated. The collateralized XFI is then used to cover the xUSD debt and any associated liquidation fees, ensuring the stability of the system.

how to use xusd?

Algorithmic stablecoin XUSD is an advanced investment tool. XUSD is also meant to be used inside protocols on the blockchain network. All liquid token pools contain XUSD, which helps to maintain the CrossFi ecosystem and the XFI rate.
The main options for how to use xUSD:
1. Investments in other crypto assets
2. Usage in DeFi protocols:

Staking in xAPP to get incentives
Liquidity Provider in xSwap
Lending in Pholend
DeFi platform xAssets

XFI is a native coin of the CrossFi Chain, an asset that price will increase. Owning XFI, the user does not want to sell, since he will lose part of the profit if he sells part of XFI

There is a need to make a purchase, buy another asset, or trade
The user puts part of XFI as collateral, and get XUSD
Perform operations, return XUSD, save his XFI balance (during this time, the XFI exchange rate has increased
while it was locked as a collateral)

Coming soon

Collateralization Mechanism

xUSD is an algorithmic stablecoin with a collateralization ratio of 1:3, meaning it is backed by three times the value of its issuance. This high collateral requirement provides enhanced stability and protection against inflation, surpassing that of many other stablecoins. Additionally, xUSD’s reserves are fully transparent and secured by smart contracts, ensuring trust and reliability for users.

By eliminating the risk of third-party intervention or asset freezing, xUSD offers users unparalleled control over their assets within the CrossFi ecosystem, making it an ideal choice for secure and decentralized crypto payments.

USDC vs USDT vc XUSD

Regulatory

Risks of blocking

Reserve Instrument

xUSD

100% cryptocurrency  (XFI and other)

USDT

Possible

Yes. no transparency, suspected mismatch of secured reserves, price dropped to 0.88, Tether reserves were never verified by a fully independent third party

Relies on a fiat dolar reserve and assets of Tether Holdings Ltd

USDC

Yes, there may be a blocking of funds by Circle

Official coin of Coinbase. The dollar value of the token is fully backed by the US dollar. The Center consortiumbehind the asset says the USDC is issued by regulated financial institutions

Regulatory

xUSD

USDT

Possible

USDC

Risks of blocking

xUSD

USDT

Yes. no transparency, suspected mismatch of secured reserves, price dropped to 0.88, Tether reserves were never verified by a fully independent third party

USDC

Yes, there may be a blocking of funds by Circle

Reserve Instrument

xUSD

100% cryptocurrency  (XFI and other)

USDT

Relies on a fiat dolar reserve and assets of Tether Holdings Ltd

USDC

Official coin of Coinbase. The dollar value of the token is fully backed by the US dollar. The Center consortiumbehind the asset says the USDC is issued by regulated financial institutions

What Is an Algorithmic Stablecoin?

The key feature of algorithmic stablecoins is to ensure the price due to algorithms, smart contracts, or user actions that interact with them. Algorithmic stablecoins are used as a highly liquid trading tool and in DeFi applications for lending, yield farming, and much more.

Centralized stablecoins such as USDT and USDC are usually issued by a single issuer, which ensures their price stability at the expense of its reserves. Both USDC and USDT coins could be used to buy or sell any items or services as any other crypto assets. But at the same time, issuers control stablecoin emission and this does not guarantee 100% decentralization.

Algorithmic stablecoins do not have full provision of reserves. They can be provided with reserves from cryptocurrencies or other assets. The stablecoin price is supported by special mechanisms used by the developer of the stablecoin — for example, provision with a native coin.

In the xUSD stablecoin, the protective mechanism against volatility is a powerful collateral mechanism that will not allow the price of the coin to change. It gives fully transparent reserves, confirmed by smart contracts, imitated by users. There is no risk of third parties freezing or regulating users’ assets.

Coming soon

Get Lp Tokens

Swap

faq

What is a stablecoin?

A stablecoin is a type of cryptocurrency designed to maintain a stable value relative to a specific asset or a basket of assets, most commonly a fiat currency like the U.S. dollar. Stablecoins aim to combine the benefits of cryptocurrencies—such as security, speed, and decentralization—with the price stability of traditional currencies. They achieve this stability through various mechanisms, including collateralization with assets, algorithmic adjustments, or a combination of both.

What is xUSD?

xUSD is an algorithmic stablecoin developed by CrossFi, designed to maintain a 1:1 peg to the U.S. dollar. Deployed on the CrossFi Chain, xUSD is issued through the CrossFi xApp DeFi platform and is backed by a robust collateralization mechanism. Users can obtain xUSD by depositing their assets, precisely the native XFI coin, as collateral at a minimum ratio of 300%. This means that to mint 100 xUSD, a user must lock at least $300 worth of XFI within the protocol. xUSD can be used for various purposes within the CrossFi ecosystem, including investments, staking, liquidity provision, and lending.

How does xUSD protect against crypto market volatility?

xUSD safeguards against crypto market volatility through its high collateralization ratio and algorithmic stability mechanisms:

Collateralization Ratio of 1:3: xUSD requires a collateralization ratio of at least 300%, backed by three times the value of its issuance in XFI tokens. This high collateral requirement provides a significant buffer against price fluctuations in the crypto market.
Automatic Liquidation Mechanism: The position is automatically liquidated if the collateralization position falls below a healthy threshold (specifically below 200%). The collateralized XFI covers the xUSD debt and associated liquidation fees, ensuring stability.
Algorithmic Adjustments: As an algorithmic stablecoin, xUSD employs smart contracts and algorithms to maintain its peg to the U.S. dollar, adjusting supply and demand factors as needed.

These mechanisms ensure that xUSD maintains its stability and offers protection against the inherent volatility of the cryptocurrency market.

Is xUSD a reliable stablecoin?

Yes, xUSD is designed to be a reliable stablecoin within the CrossFi ecosystem due to several key factors:

High Collateralization: With a 300% collateralization ratio, xUSD provides enhanced stability and protection against market volatility, surpassing many other stablecoins.
Transparent Reserves: The reserves backing xUSD are fully transparent and secured by smart contracts. Users can verify the collateralization on-chain, ensuring trust and reliability.
Decentralization: xUSD operates without the risk of third-party intervention or asset freezing, giving users full control over their assets.
Algorithmic Stability: As an algorithmic stablecoin, xUSD utilizes advanced algorithms and smart contracts to maintain its peg to the U.S. dollar.

These features make xUSD a reliable and secure option for users seeking stability within the cryptocurrency market.

How is xUSD used in the blockchain network?

xUSD serves multiple functions within the CrossFi blockchain network:

Medium of Exchange: xUSD can be used to purchase other crypto assets or services, acting as a stable medium of exchange within the ecosystem.
Investments in Other Crypto Assets: Users can use xUSD to invest in various crypto assets without worrying about price volatility during the transaction process.
DeFi Participation: xUSD is integrated into several DeFi protocols on the CrossFi Chain:
Staking in xApp: Users can stake xUSD to earn incentives and rewards.
Liquidity Provision in xSwap: Providing liquidity with xUSD helps maintain the ecosystem and can yield LP tokens and fees.
Lending in Pholend: Users can lend or borrow xUSD through the Pholend platform.
DeFi Platform xAssets (Coming Soon!): xUSD will be used in the upcoming xAssets platform for additional DeFi opportunities.
Ecosystem Stability: All liquid token pools contain xUSD, which helps maintain the CrossFi ecosystem and supports the XFI token rate.

Is xUSD a native coin of the blockchain?

No, xUSD is the native stablecoin of the CrossFi blockchain. The other native coin is XFI, which is used for:

Collateralization: Users deposit XFI as collateral to mint xUSD.
Network Operations: XFI is used for transaction fees and other operational purposes within the CrossFi Chain.

xUSD is an algorithmic stablecoin that operates on the CrossFi Chain, leveraging XFI for its collateralization mechanism. While it plays a crucial role in the ecosystem, it is not the native coin but rather a stable asset designed to facilitate various DeFi activities and provide stability against market volatility.