In response to the growing need for a decentralized financial asset that is backed by a single dollar, HT Digital Assets developed USDX. The first native Network’s DeFi Stablecoin to be released on the Flare Network.
The USDT $0.9989 Tether price is under pressure to comply with the Markets in Crypto-Assets Regulation (MiCA). Hex Trust’s co-founder and CEO Alessio Quaglini, recently spoke with Cointelegraph about USDX and its plans to become a foundational stablecoin for DeFi applications. The USDX stablecoin and gas token in the Flare ecosystem is backed by short-term Treasury bills and other cash and equivalents.
As per Quaglini’s statement. HT Digital Assets, Hex Trust’s tokenization ecosystem, is responsible for bringing USDX to life. It is the first native stablecoin on the blockchain for data, Flare. With “aims to integrate further within DeFi applications” and become a reliable asset for users. According to the CEO of Hex Trust, USDX will become a cornerstone stablecoin in DeFi.
USDX Stable and Secure with Yield
To guarantee the Network’s DeFi Stablecoin value and stability for holders. Quaglini stated that the reserves, mostly consisting of 1- to 3-month T-bills, are securely held within the confines of global, tier-1 financial institutions. Additionally, USDX can be utilized. Clearpool’s T-pool to generate rewards a decentralized liquidity pool (LP) inside the Clearpool protocol that is tailored to enable yield creation via stablecoin deployment.
Although Quaglini is optimistic about the stablecoin’s future, he warned that it could encounter. Regulatory hurdles in different jurisdictions and compete with other established stablecoins, such as the regulated Circle USD USDC$1.00.
Ability to generate yields and manage flares
The USDX T-Pool on Clearpool allows holders to receive a variable or fixed interest rate, often called yield. Which is similar to savings interest in the TradFi area. According to the CEO of Hex Trust, there are no lock-up periods for holders to earn rewards in either USDX or FLR. Another perk is that the Network’s DeFi Stablecoin is integrated with “FAssets,” so users can use non-smart contract tokens like Bitcoin (BTC$95,855) in DeFi for yield and cross-chain bridging.
As a native stablecoin and gas token. HT Digital Assets’USDX is expected to debut on Flare and serve as a building block for DeFi and bridging ecosystems. Quaglini puts it. He stated that USDX established the foundation for network innovation through its loan and borrowing protocols. Perpetual futures exchanges, and Flare Labs’ FAsset system.
USDX Flare Network’s Yield Stablecoin
According to Hugo Philion, CEO of Flare Labs and co-founder of Flare Network. Who spoke with Cointelegraph, the need for a dollar-pegged, natively issued coin led to the creation of USDX. While locked in agent vaults as cUSDX,” as Philion put it. USDX can generate yield from Clearpool and is a crucial part of the Flare ecosystem.
Quaglini calls it a “foundational asset” for the DeFi ecosystem. The CEO of Flare Labs also said that this yield prospect makes the FAsset system far more economically desirable from the agent perspective.” However, the distribution of FAssets is still dependent on the Flare Times Series Oracle setting a reliable USDX price.
FAQs
How is USDX backed and secured?
USDX is backed by short-term Treasury bills (1-3 months) and cash equivalents, held in tier-1 financial institutions to ensure value and stability.
What role does USDX play in the Flare ecosystem?
USDX serves as both a stablecoin and gas token, acting as a foundational asset for DeFi, lending, borrowing, and perpetual futures on Flare.
Can USDX generate yield for holders?
Yes, USDX can generate yield through Clearpool’s T-pool, allowing users to earn interest without lock-up periods by deploying USDX in decentralized liquidity pools.
What challenges could USDX face in the future?
USDX may encounter regulatory hurdles in various jurisdictions and face competition from other stablecoins like Circle’s USDC.
