About the coin

UXD Protocol is an innovative algorithmic stablecoin designed to maintain its value through a unique mechanism. Unlike traditional stablecoins that rely on fiat reserves or over-collateralization, UXD is fully backed by a delta-neutral position using derivatives. This approach ensures that the stablecoin remains stable and fully backed without the need for holding users' deposited crypto assets.

Main features

One of the standout features of UXD Protocol is its non-custodial nature. This means that the protocol does not hold or manage users' crypto assets, providing a layer of security and trust for users. Additionally, UXD allows users to mint or redeem the stablecoin on a permissionless basis, offering flexibility and ease of use. Users can mint 1 UXD for $1 worth of crypto assets without the need for over-collateralization, making it accessible and efficient.

How it works

The core mechanism of UXD Protocol involves the use of derivatives to create a delta-neutral position. This means that the protocol balances its exposure to market movements, ensuring that the value of UXD remains stable regardless of market volatility. By leveraging derivatives, UXD Protocol can maintain its peg to the US dollar without the traditional requirements of fiat reserves or over-collateralization. This innovative approach provides a robust and scalable solution for stablecoin issuance on the Solana network.