Use xDollar on Avalanche

Glossary‌

Borrowing Fee — The Borrowing Fee is a one-off fee charged as a percentage of the borrowed amount (in xUSD) and is part of a Trove’s debt. The fee varies between 0.5% and 5% depending on xUSD redemption volume.‌
Account — The total number of active Accounts in the system.‌
xUSD supply — The total xUSD minted by the xDollar system.‌
xUSD Pool (Stability Pool) — The total xUSD currently held in the Stability Pool, expressed as an amount and a fraction of the xUSD supply.‌
Staked XDO— The total amount of XDO that is staked for earning fee revenue.‌
Platform Collateral Ratio — The ratio of the dollar value of the entire system collateral to the entire system debt.‌
Recovery Mode — Recovery Mode is activated when the Total Collateral Ratio (TCR) falls below 150%. When active, your Trove can be liquidated if its collateral ratio is below the TCR. The maximum collateral you can lose from liquidation is capped at 110% of your Trove’s debt. Operations are also restricted which would negatively impact the TCR.

xUSD Stablecoin

xUSD is the USD-pegged stablecoin used to pay out loans. xUSD will be minted when users deposit collateral (AVAX) to open account.

XDO Token

XDO is the secondary token issued by the xDollar. It captures the fee revenue that is generated by the system and incentivizes early adopters.

Home Section

Account

The home section is where you will maintain your loan. Here you will be able to add/remove AVAX as collateral as well as manage your debt.‌
Note that each Avalanche address is only able to have one Account
Deposit — The amount in AVAX staked as security for repayment of your loan‌
Debt — The amount of xUSD borrowed.‌
Liquidation Reserve — An amount set aside to cover the liquidator’s gas costs if your Account needs to be liquidated. The amount increases your debt and is refunded if you close your Account by fully paying off its net debt.‌
Borrowing Fee — This amount is deducted from the borrowed amount as a one-time fee. There are no recurring fees for borrowing, which is thus interest-free.‌
Collateral ratio — The ratio between the dollar value of the collateral and the debt (in xUSD) you are depositing. While the Minimum Collateral Ratio is 110% during normal operation, it is recommended to keep the Collateral Ratio always above 150% to avoid liquidation under Recovery Mode. A Collateral Ratio above 200% or 250% is recommended for additional safety.

Open a Account

Open a Account to mint xUSD debt against your AVAX.‌
1) Enter the amount of AVAX collateral you wish to use. (The Collateral Ratio needs to be above 110% or above 150% if in Recovery Mode)‌
2) Enter a Borrow value greater than 180 xUSD
3) Confirm the amount of AVAX deposit and xUSD displayed at the bottom info section‌
4) Click “Confirm”‌
After you have successfully confirmed, the Account view will add the ability to adjust or close the Account.

xUSD Pool (Stability Pool‌)

The xUSD Pool (Stability Pool‌) acts as a cushion to make the platform more stable. If you provide xUSD to this pool you will be able to earn some extra rewards.‌
Deposit your xUSD into the xUSD pool Stability Pool to earn rewards in xUSD token.‌
1) Click the “Stake xUSD” button‌
2) Enter the amount of xUSD you wish to enter‌
3) Click the “Confirm” button

Staking‌ Pool

Stake the XDO you earn to receive protocol income and AVAX.‌

Start Staking‌

1) Click the “Stake XDO” button‌
2) Enter the amount of XDO you’d like to stake.‌
3) Click the “Confirm” button
Claim your Staking reward by clicking the “Claim gains” button and approving the transaction.

Farm‌

You could earn XDO via staking LP tokens.

Liquidate

Risky Account are accounts that have a low collateral ratio and may be liquidated if collaterals prices drop sharply.‌

Redeem

A redemption is the process of exchanging xUSD for AVAC at face value, as if 1 xUSD is exactly worth $1. That is, for x xUSD you get x Dollars worth of AVAX in return.‌
Users can redeem their xUSD for AVAX at any time without limitations after 14 days. However, a redemption fee might be charged on the redeemed amount.‌
xUSD redemption is disabled for the first 14 days after launch.
After some time, you will gain AVAX and XDO. When you have a reward to claim, the button will be enabled. If you currently have a Account open, you will also have the option to “Claim XDO and move AVAX to Trove.”
Last modified 1mo ago