About

UXD Protocol is an algorithmic stablecoin protocol backed by delta-neutral perpetual swap positions. The stablecoin lives natively on Solana and leverages perpetual swap protocols to create a backing mechanism not affected by volatility.

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.