Liquidity Management System

There are two pools for assets and liquidity management.

• USDT/USDC Reserve Pool: All USDC and USDT used for minting xUSD are directed to our reserve pool on ETH Layer 1. This mechanism ensures that every xUSD issued is fully backed by stable and reliable assets, preserving trust and value across our network.

• USD Offchain Pool: To facilitate broader business operations and meet off-chain monetary demands, xUSD also allows XLD Entity to collect USD through OTC transactions. This pool primarily serves as a flexible reserve to manage fiat transactions and other USD-based operational needs.

This system is important to ensure utility of xUSD in both DeFi and traditional finance applications.