What is UXD Protocol? All UXD and UXP token information

• Overview of UXD Protocol
• What is UXD Protocol?
• Features of UXD Protocol's UXD stablecoin
• Stablecoin UXD Stability Mechanism
• UXD's Competitive Advantage in Stablecoins
• Risks that stablecoin UXD faces
• The development team, the investor of the UXD Protocol project
• UXD Protocol development roadmap
• Token overview of UXD Protocol
• What is UXD, UXP?
• What is the function of UXP?
• Allocate UXP . tokens
• Where can UXP tokens be bought and sold?
• What is the future of UXD Protocol?
• summary

Overview of UXD Protocol

What is UXD Protocol?

UXD Protocol is a decentralized financial protocol built on Solana, responsible for creating UXD – a decentralized algorithmic stablecoin . Stablecoin UXD is backed by cryptocurrency with Delta neutral position strategy.

Explanation of words : Delta neutral is a strategy that helps investors trade assets without being affected by volatility in the market.

This stablecoin will be integrated with leading derivatives exchanges on Solana helping to keep the position of volatile crypto assets. Mango Markets is the first derivatives exchange powered by UXD Protocol.

With a specially designed structure, stablecoin UXD can solve the problems of stability, capital efficiency and decentralization. Not stopping there, this stablecoin helps investors make a profit when the Funding rate of the perpetual futures position is positive.

Features of UXD Protocol's UXD stablecoin

Stable

The value of UXD has always been stable as it is pegged to the USD and is fully supported by the strategy of holding a Delta neutral position. Therefore, users can always exchange 1 UXD for 1 USD. 

On the other hand, if the value of the UXD deviates from the USD rate for any reason, then traders will be able to make a risk-free profit and bring the UXD price back to the anchored price. 

Decentralized

UXD is a non-custodial (non-custodial) stablecoin and does not hold investors' deposited crypto assets. They can use or redeem the UXD without having to go through a 3rd party. 

Although the development team will control the initial design choices of UXD Protocol, holders of UXP (the governance token of UXD Protocol) will have the right to future design proposals. 

This will ensure that the UXD is decentralized in the long run and never depends on any individual organization.

Effective use of capital

Unlike many other stablecoins that require users to collateralize crypto assets worth more than $1, in order to mint a $1 stablecoin. UXD allows users to exchange at par value with crypto assets, i.e. 1 UXD can be exchanged for 1 USD of crypto assets. 

This helps users save time monitoring the fluctuations of mortgage funds to prevent the risk of asset liquidation.

Original profit

Once the UXD is minted, the UXD protocol establishes a derivatives trading position on the DEX exchanges. Thus, the question arises "who will pay the Funding rate?". There will be 2 cases as follows:

• If the Funding rate is "positive", part of this fee will be sent to the user and the rest will go to the insurance fund.
• Conversely, if the Funding rate is "negative", the insurance fund of UXD Protocol will pay this cost to the exchange.

If the money in the insurance fund does not have enough money to pay the Funding rate, the project will bring UXP (the governance token of UXD Protocol) to auction to create a source of money for the fund.

Stablecoin UXD Stability Mechanism

UXD uses a new value stabilization mechanism that is completely different from existing stablecoins in the crypto space. UXD uses perpetual futures contracts to create an on-chain neutral position by stabilizing value in USD terms. UXD stablecoins are issued in proportion to the position value created and backed by the position itself. 

That is, the UXD Protocol will hold an asset (such as SOL or BTC) and simultaneously open a short position on that same asset through a perpetual futures contract. If holding a buy position and a corresponding short position on the same asset, the collateral value to mint UXD will remain the same.

To do that, UXD Protocol has adopted a strategy of keeping a Delta neutral position, meaning that the stablecoin will be stable in the value of USD despite the constantly fluctuating price of crypto assets. 

UXD's Competitive Advantage in Stablecoins

UXD is an algorithmic stablecoin that uses a strategy of keeping a Delta neutral position on Solana. This is seen as a new innovation to stablecoins, as well as a unique innovation enabled by Solana's extensible structure and existing DEX infrastructure.

UXD's value stabilization mechanism is highly appreciated with many advantages over competitors in the stablecoin segment. The advantages of UXD are scalability, capital efficiency and decentralization. 

On the other hand, UXD is the first decentralized algorithmic stablecoin built on Solana – the first smart contract platform to directly compete with Ethereum. Although, Solana already has centralized stablecoins, Ethereum-based stablecoins can be transferred to Solana via the Wormhole bridge. However, this ecosystem still does not have a decentralized stablecoin and UXD is the missing piece of the system.

By becoming a decentralized stablecoin on Solana, UXD can benefit a lot from the development of this ecosystem.

Risks that stablecoin UXD faces

Platform risk

UXD is built on Solana – a new and growing platform that is technically still in beta. Solana's September network outage is proof that the network still poses a relatively large degree of risk to users and projects within it, such as the UXD Protocol.

Smart contract and protocol risks

UXD Protocol is currently in the process of being finalized. All new protocols and unfinished contracts carry some potential risks. Vulnerabilities in the contracts of UXD Protocol or Mango Markets (and other integrated DEXs) are an issue that should always be considered.

Market risk

Although, UXD uses a new value stabilization mechanism, there are some rare risks in the cryptocurrency market that result in UXD positions losing value. In that case, the value of the UXD token will also deviate from the USD rate, even though UXD is a stablecoin. 

The development team, the investor of the UXD Protocol project

Development team

UXD Protocol is a decentralized stablecoin protocol built on Solana, founded in 2020 as Soteria. After a period of operation, Soteria was changed to UXD Protocol. Currently, information about the development team has not been announced. TraderH4 team will update after getting information from this project.

Investors

UXD Protocol has raised US$3 million in a seed round led by Multicoin Capital with participation from Alameda Research, DeFiance Capital, CMS Holdings, Solana Foundation, Mercurial Finance. In addition, the list of investors also includes individuals such as Anatoly Yakovenko, Raj Gokal...

UXD Protocol development roadmap

First half of 2022

• The project will launch a liquidity mining program. Also launched the functionality of the UXP governance token, including: Staking, voting and rewards program.
• The project will convert to management according to the DAO model. Basically, UXD is a decentralized stablecoin, the goal of the project is to be as decentralized as possible. 

Second half of 2022

• Cross-chain development: As other DeFi ecosystems grow, there will be opportunities for UXD to deploy on other chains. This helps provide a wide network effect to UXD holders in the ever-evolving cryptocurrency market. At the same time, it brings added value to UXP (the governance token of UXD Protocol). 
• Mining of non-USD fiat stablecoins: UXD will expand by minting other stablecoins pegged to JPY, GBP… Delta neutral position strategy supports UXD to work on any currency, as long as there are contracts perpetual future in that currency. 

Token overview of UXD Protocol

What is UXD, UXP?

UXD is a stablecoin of the UXD Protocol whose value is pegged to 1 USD. Besides, UXD Protocol also has another token called UXP, which acts as an administrative token, controlling the UXD DAO.

Details about the governance token of UXD Protocol:

• Ticker: UXP
• Blockchain Network: Solana (SPL)
• Total Supply: 10,000,000,000 UXP

What is the function of UXP?

• UXP token holders can vote on proposals that add value to the UXD Protocol project.
• UXP will be reserved to support UXD Protocol's insurance fund, should the insurance fund run out of money. 
• The revenue generated from the Delta neutral position strategy can be distributed to UXP token holders. This must be decided through a vote of UXP token holders.

Allocate UXP . tokens

• Team: 20%, of which 25% will be allocated after 1 year, the rest will be allocated linearly over 3 years.
• Investors: 15%, of which 50% will be allocated after 1 year, the rest will be allocated linearly over 1 year.
• Community: 57%, these tokens will be allocated through the liquidity mining program and the allocation time will be decided by the DAO.
• Treasury: 5%, this token will be used for future protocol development.
• Token sale: 3%, the amount raised from the UXP token sale will be deposited into the insurance fund.

Where can UXP tokens be bought and sold?

Currently, investors can buy UXP tokens on Solana's decentralized exchanges such as Serum DEX, Raydium.

What is the future of UXD Protocol?

Creating a stablecoin with all the elements such as stable value pegged to USD, decentralization and efficient use of capital, is considered a huge challenge. Before that, dozens of stablecoins have appeared, but have also failed. 

UXD Protocol was created to solve the outstanding problems in the space of cryptocurrencies in general and the stablecoin array in particular. The project aspires to become a stablecoin that crypto users trust to perform transactions (such as buying NFTs, paying employees, etc.), using it as a store of value…

In the long term, UXD's goal is to become the asset of choice for a decentralized bank, a payment application. Because UXD Protocol believes its stablecoin meets the requirements to be an essential part of the decentralized financial ecosystem. In addition, UXD Protocol believes that UXD can serve more areas than just DeFi and replace USDC, USDT. 

summary

Above is information about the UXD Protocol project and the UXP and UXD token duo. The UXD Protocol project provides a decentralized stablecoin that fully meets criteria such as trustworthiness, stability, and scalability. If investors are interested in the UXD Protocol project, they can refer to the following information channels:

Website | Twitter | Telegram | Discord

• Russian President Putin supports building an international payment system based on blockchain
• Bitcoin market overview through leading indicators