UXD Stablecoin
Crypto Overview
Purpose and Design
UXD is an algorithmic stablecoin protocol built on the Solana blockchain that aims to maintain a 1:1 peg with the US Dollar. The protocol uses delta-neutral positions in perpetual futures contracts to maintain its stability, rather than relying on overcollateralization with other cryptocurrencies.
Business Model & Mechanism
The protocol works by minting UXD tokens against delta-neutral positions in perpetual futures markets. When users deposit collateral, the protocol simultaneously opens long spot and short perpetual futures positions, creating a market-neutral position that generates funding rate yields. This mechanism helps maintain the dollar peg while generating revenue for the protocol.
Real-World Adoption
UXD has seen limited adoption within the Solana DeFi ecosystem. The stablecoin is used primarily for trading and liquidity provision on Solana-based decentralized exchanges.
Development Activity
The protocol appears to have an active development team maintaining and updating the platform. However, development activity has been focused mainly on maintaining existing functionality rather than expanding features.
Token Distribution
The project has not issued a separate governance token, focusing solely on the stablecoin itself. This means there isn't a separate token distribution to evaluate for founder enrichment concerns.
Crypto Impact
To assign a comfort level investing in UXD Stablecoin from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to UXD Stablecoin.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.