UXD Protocol

Overview

UXD Protocol is a decentralized protocol designed to create a stable cryptocurrency (UXD) that maintains a soft peg to the US Dollar through delta-neutral positions. The protocol's governance token, UXP, provides holders with voting rights over protocol parameters and treasury management.

Purpose and Utility

The primary utility of UXP tokens is governance over the UXD Protocol. Token holders can participate in protocol decision-making, including parameter adjustments, treasury management, and protocol upgrades. The token also captures a portion of the protocol's revenue through a buy-and-burn mechanism.

Business Model

The protocol generates revenue through trading fees and liquidations in its delta-neutral mechanism. This revenue is partially used to buy back and burn UXP tokens, potentially benefiting token holders. The core business model focuses on providing decentralized financial infrastructure rather than lending or interest-bearing products.

Development and Adoption

The protocol maintains active development on the Solana blockchain. The team regularly pushes updates and improvements to the protocol's smart contracts and infrastructure. While adoption metrics are modest, the protocol has demonstrated consistent usage for its stated purpose.

Token Distribution

The token distribution includes allocations for team members and early investors with standard vesting schedules to align long-term incentives. The protocol maintains transparency regarding token allocations and vesting schedules through public documentation.