xUSD

xUSD create a synthetic on-chain USD, which is secured and scaled through the strategic use of a basket of cryptocurrency including stETH, WBTC, USDT, USDC etc. This mechanism offers a delta-neutral synthetic dollar by balancing the positions with opposite hedges during token minting.

Key features and benefits of xUSD:

• Capital Efficiency and Scalability: xUSD enhances its scalability through a precise utilization of derivatives. Upon receiving assets, the system promptly opens short positions on centralized exchanges (CEXs) to mint xUSD. This operation facilitates a balanced hedge, ensuring 1:1 effective collateralization. This method preserves capital efficiency and is optimally aligned with the requirements of both decentralized and centralized markets.

• Stability through Hedging: Upon issuance, xUSD immediately engages hedges corresponding to the transferred spot assets. This fortifies the stability of xUSD, ensuring that its value remains aligned with the synthetic USD it represents, thereby providing a reliable medium of exchange.

• Censorship Resistance and Transparency: By operating outside traditional banking systems and utilizing off-exchange, MPC secured custody accounts, xUSD ensures transparency and resistance against censorship. Assets are managed in onchain, trustless environments, which are auditable around the clock, enhancing security and user trust.

By transforming Ethereum and other digital assets into a stable and reliable form of currency, xUSD aims to catalyze significant capital inflows, reinforcing its position as a pivotal monetary asset in the cryptocurrency landscape.