UXD Protocol Announces $3 Million Seed Round led by Multicoin Capital

Published on: 03.09.2021

UXD Protocol proudly announces they have raised $3 million in a seed round led by Multicoin Capital with participation from Alameda Research, Defiance Capital, CMS Holdings, Solana Foundation, Mercurial Finance, Solana founders Anatoly Yakovenko, Raj Gokal, and Saber founder Dylan Macalinao.

The funds will be used to launch Testnet and Mainnet, and to hire more developers aggressively. Testnet is scheduled to launch in September and Mainnet in October.

UXD Protocol is an algorithmic stablecoin backed 100% by a delta neutral position using perpetual swaps. The stablecoin will be issued natively on Solana and we will integrate with perpetual swap protocols to create the delta neutral position. Users will be able to trustless issue/redeem UXD in exchange for a wide range of cryptocurrencies. The funding rate generated from the delta neutral position will be paid out to holders of UXD, a yield that is native to the protocol.

An insurance fund will also be created that pays the negative yield when the funding rate is negative. The insurance fund will be funded by part of the interest payments from the delta neutral position. We also plan on having a liquidity mining program to incentivize staking in the insurance fund. If the insurance fund is depleted for any reason, we will hold an auction of governance tokens and replenish the fund. All these measures will ensure that holders of UXD will never pay the negative interest rate.

UXD Protocol addresses the stablecoin trilemma, which is decentralization, stability, and capital efficiency. Current stablecoin iterations can only achieve 2 out of 3. They intend on creating a stablecoin that achieves all 3.

With the launch date of UXD coming soon, we decided to create an NFT as a pre-launch! The $HOOD NFT entitles you to one UXD hoodie (black or white). The hoodie has a limited total supply of 69 and will be sold here against a bonding curve. The price will start at $69 and the price will adjust as people buy and sell the NFT. Once all 69 $HOOD are sold out, we will use the funds raised to buy 1 NFT based on a vote by $HOOD holders. $HOOD holders will collectively own the NFT and can sell them to buy other NFT. UXD hoodie was designed by SPCMN.