UXD Devnet Launch On Optimism
UXD Devnet launch on Optimism. Users can now go to https://optimism.uxd.fi/ and mint/redeem UXD with ETH. The UXD is a stablecoin and pegged to the USD.
UXD on Optimism is integrated with Perpetual Protocols to create the delta-neutral position. Below are the steps to mint/redeem UXD.
UXD is issued on Solana, an incredibly fast, cheap, and permissionless blockchain. In addition, UXD is a next-generation decentralize stablecoin that integrates with top derivative trading exchanges on Solana in order to create a “delta-neutral” position that collateralizes the stablecoin.
Its first derivative dex is Mango Markets. Through UXD’s construct, they are able to solve the “stablecoin trilemma“, allowing UXD to be stable, capital efficient, and decentralized. Moreover, the stablecoin has native yield from the “funding rate” of the perpetual futures position it puts on, allowing UXD stakeholders to generate yield as a result.
How does UXD differ from “algorithmic” stablecoins?
- Stable: The goal of a stablecoin is to keep a direct peg to a non-crypto asset like US Dollars. If a stablecoin wildly fluctuates above or below this peg, it is fundamentally not very useful.
- Decentralized: The issuance, trading, and flow of the stablecoin should not rely on any centralized entity. Minting and redeeming the stablecoin should be permissionless and decentralized, and the community of stablecoin users should own the platform that creates the stablecoin.
- Capital Efficient: Anyone should be able to mint the stablecoin with $1 of assets. Requiring more than $1 to mint a stablecoin, such as a case with DAI, is extremely inefficient for users.
Optimism builds according to a strong design philosophy that stands on four main pillars. These are simplicity, pragmatism, sustainability, and, of course, optimism. It’s important to understand these pillars as they heavily influence the design of Optimism as a whole.
Optimism designs as simple as possible for the feature set it provides. Ideally, Optimism is compose of the minimum number of moving parts required for a secure, scalable, and flexible L2 system. This simplicity gives Optimism’s design a number of significant advantages over other more complex L2 constructions.
ABOUT UXD Protocol
UXD Protocol is a fully collateralize and decentralize stablecoin backed by a delta-neutral position using derivatives.
