About

UXD Protocol is a decentralized stablecoin that is backed by low volatility strategies, such as delta-neutral positions and overcollateralized crypto-backed loans. The protocol ensures that there is no mismatch between its assets and liabilities. The governance token, UXP, receives cash flows generated from the assets controlled by the protocol and serves as the final backstop asset in case the insurance fund is drained. The protocol is live on Solana and Arbitrum.

History

UXD Protocol is a Solana-based project that offers an algorithmic stablecoin fully backed by delta-neutral positions using perpetual swaps. The central vision of the protocol is to address the stablecoin trilemma: decentralization, stability, and capital efficiency. Considering how the large portion of the stablecoin market is composed of centralized stablecoins such as USDT, USDC, and BUSD, the protocol wants to create a decentralized, crypto-native stablecoin that is uncensorable, stable, and scalable.

Upon referring to UXD protocol, users are able to trustlessly issue and redeem UXD in exchange for a wide range of cryptocurrencies starting with BTC and SOL. The collateral tokens deposited by the users are put to utilization through opening a short position on a decentralized perpetual protocol like Mango Markets. This way, the protocol creates a delta-neutral position by spot-holding these volatile coins while effectively shorting them via derivative contracts.

The protocol started its journey as Soteria in November 2020 and rebranded to UXD Protocol in August 2021. After launching its devnet in October, the protocol had the token sale of its governance token UXP in November to capitalize the insurance fund. The protocol launched on mainnet beta in January 2022.