UXD Launches Mainnet Beta, Bringing The First Fully-Decentralized, Capital-Efficient Stablecoin to Solana

The Vision of UXD Protocol

  1. Trust & Transparency- Stablecoins by their nature are not assets that go up in value. Users hold and transact only in stablecoins they trust. The most direct way to build trust is through complete transparency. This includes everything from public communication to getting feedback on strategy plans from the community, to open sourcing code for review. Clear and consistent messaging is key.
  2. Network Effects- USD is the world’s reserve currency to date because of perceived network effects. Countries invoice trade in USD, international payments are often settled in USD, and many people “think” in terms of USD. UXD needs to strategically grow network effects through integrations with other protocols and incentives in the crypto ecosystem to ensure that UXD sees widespread adoption and reaches a similar level of comfort and familiarity in the minds of users. Growing the supply and liquidity of UXD is the best way to demonstrate demand and nurture network effects for UXD in the market, while integrating into major DeFi platforms.

Mainnet Beta Launch Details

  • Beginning on January 18th, 2022 at 14:00 UTC, UXD will be live as a stablecoin on the Solana mainnet network and can be minted on our website by persons in non-restricted regions (see Terms and Conditions). See minting/redeeming guide for instructions on how to use the app.
  • In order to build trust in the protocol and ensure that UXD is functioning as expected, there will be an initial per address minting cap of 10,000 UXD and an initial total supply cap of 1,000,000 UXD.
  • Initially collateral for minting UXD will be SOL.
  • Early users will be rewarded for their continued support via a retroactive reward of UXP governance token.
  • UXD minted supply will remain capped at 1,000,000 UXD for a period of five days. If the protocol continues to run smoothly, the cap will be raised to 2,000,000 UXD on January 23rd at 14:00 UTC.
  • After the first cap raise to 2,000,000 UXD, if the protocol continues to run smoothly, the cap may be further raised by 250,000 UXD every day until the cap hits 10,000,000 UXD. Any decisions to pause cap increases will be immediately announced in our discord channel, with rationale given.
  • After the cap hits 10,000,000 UXD, if the protocol continues to run smoothly, the cap may be raised by 1,500,000 UXD per day until reaching a cap of 25,000,000 UXD.
  • The cap of 25,000,000 UXD cap will remain in place until our second professional security audit concludes (expected completion: middle of March). Once the security audit concludes, the cap may be raised by 2,500,000 per day until it reaches 200,000,000 UXD. The UXD community may lift caps faster during this period if it is feasible to do so.
  • Assuming everything goes smoothly, the UXD cap will reach 200,000,000 UXD in approximately 12–18 weeks from Mainnet Beta launch. This will be the final cap. Once the UXD community feels that UXD has implemented and finalized all features and security measures envisioned for V1, the 200,000,000 UXD cap will be lifted and UXD will achieve full takeoff, officially ending Mainnet Beta and entering UXD Mainnet.
  1. UXD may trade above its peg of $1 due to the initial supply caps. If the demand for UXD far outstrips the capped supply, then UXD may trade at a premium. This would be natural, and shouldn’t be seen as a long term issue with UXD’s price stability. As the supply cap increases, this pressure should alleviate.
  2. UXD may push funding rates negative initially. As the Solana ecosystem continues to grow, open interest on Mango Markets and other derivative dexs will continue to grow as well. Initially, UXD may have significant positions on these dexs relative to their open interest, causing funding rates to be pushed temporarily negative. As open interest grows over time, this pressure should alleviate.

Launch Integrations

  • 2% of UXP (currently, ~$20mm) will be allocated to our bug bounty program. Eventually, these funds may be redirected towards protocol development as voted on by the forthcoming DAO.
  • Critical bugs will be rewarded at 15% of the value at risk, up to $2,500,000.
  • Major bugs will be rewarded between $50,000 and $100,000, on a case-by-case basis, eventually determined by the DAO.
  • Minor bugs will be rewarded between $1,000 and $25,000, on a case-by-case basis, eventually determined by the DAO.

UXP Governance Token Preview

  • UXP holders and the UXD insurance fund will be the sole recipients of the interest created from the delta-neutral position. The interest rate split will be a function of the overall health of UXD protocol.
  • UXP holders will be able to vote on important measures such as asset management strategies for the UXD insurance fund, integration of new derivative exchanges and collateral types, and other key protocol parameters. UXP holders will partake in the economics of the insurance fund as well.
  • UXP will function similarly to Curve’s vote locked veCRV. Staked UXP will become an amount of veUXP, depending on time locked, and will accrue additional UXP rewards in return for staking. Staking will be required to receive the delta-neutral interest.

UI/UX Improvements & Dashboard

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UXD Protocol

UXD Protocol

Algorithmic stablecoin backed 100% by a delta neutral position using derivatives.