USDX

USDX is a synthetic USD stablecoin built as a crypto-native solution that doesn't rely on traditional banking infrastructure. It maintains peg stability through automated delta-neutral hedging strategies while providing yield to users who stake USDX. The protocol offers a censorship-resistant, scalable stablecoin with integrated yield generation accessible worldwide in USD denomination.

USDX generates yield by capturing price differences between spot and futures markets (these differences are called the funding rate and basis spread). The protocol runs automated delta-neutral hedging strategies: it holds collateral like Bitcoin and places matching short positions in perpetual futures contracts on major exchanges. This allows it to profit from the typical mismatch between the demand for leverage in crypto markets and the available supply.

Users who stake their USDX receive sUSDX (staked USDX) in return. sUSDX is a reward‑bearing token—its value in USDX grows over time as the protocol adds daily yield to the staking contract. The number of sUSDX tokens you hold stays the same, but each one becomes worth more USDX. The staked USDX is not lent out or used for other purposes; the yield comes directly from the hedging activities that back USDX itself.

An insurance fund protects stakers during periods when funding rates turn negative for a sustained time. This guarantee means staking users will not lose—they will earn either a positive yield or at least break even.

The protocol does not profit from minting or redeeming USDX. All trading costs and slippage are built into the pricing, and every bit of yield generated is distributed to sUSDX holders through the increasing value of their staked tokens.