UXD is backed by various low volatility strategies that generate yield. The function of the protocol is to manage the asset and liability side to ensure that there is no mismatch. Examples of low volatility strategies are delta-neutral position, overcollateralized crypto backed loans, liquid and semi-liquid lending, etc.
The governance token for UXD Protocol. UXP is a productive asset that will receive the cash flows generated from the assets controlled by the protocol. UXP also serves as the final backstop asset of the protocol, in the case the insurance fund is drained.
ASSET LIABILITY MANAGEMENT
1
User deposits crypto assets, receives UXD Stablecoin in exchange
2
UXD Protocol deploys crypto assets in low volatility strategies to generate yield
3
Yield is distributed to UXP Stakers
4
User can redeem UXD for crypto assets at par value anytime
· 保険基金 ·
INSURANCE FUND
The insurance fund represents the equity part of the balance sheet. In a scenario where the asset side incurs losses, the insurance fund will cover the loss.