search
Homeweb3.0USDx Unveiled: A Stablecoin and Collateral Instrument for Synthetix on Arbitrum

USDx Unveiled: A Stablecoin and Collateral Instrument for Synthetix on Arbitrum

Nov 03, 2024 am 01:16 AM
Synthetix Multi-Collateral Perps USDx Kwenta

Synthetix recently unveiled USDx, a stablecoin and collateral instrument for Synthetix on the Layer-2 Ethereum scaling solution called Arbitrum.

USDx Unveiled: A Stablecoin and Collateral Instrument for Synthetix on Arbitrum

Layer-2 scaling solution Arbitrum recently announced the launch of USDx, a stablecoin and a key instrument for the decentralized finance (DeFi) derivatives protocol Kwenta.

This stablecoin is set to play a crucial role in the Arbitrum ecosystem, offering better liquidity and serving as a primary collateral option for the platform. USDx is also expected to be a key instrument in the Synthetix ecosystem.

As per the announcement, liquidity providers (LPs) to Synthetix can mint USDx against their deposits in zero-interest loans via Arbitrum pools. This setup will allow LPs to participate in more DeFi opportunities on Arbitrum.

Moreover, USDx is over-collateralized by staking the deposited funds to Synthetix liquidity pools to ensure price stability. When the collateral for a position reaches the minimum required ratio, that position is closed out. This ensures that USDx is always safely collateralized, preventing its value from being affected by shifting market conditions.

USDx has also been assigned as the quote currency for Synthetix perpetual futures (Perps) on Kwenta, which is touted as one of the most widely used decentralized derivatives. PnL for traders is denominated in USDx to help make trading more seamless on Arbitrum.

The 1inch aggregator allows users to trade USDx for any other asset on the Arbitrum blockchain. LPs providing liquidity to the USDx/USDe pool on Curve Finance earn 1inch trade routing fees, with the variable annual percentage rate (vAPR) for the USDe USDx pool on Convex Finance exceeding 16%.

This rollout not only introduces USDx but also 81 new Perp markets and four collateral options to enhance trading on Kwenta. Apart from USDx, the available collaterals include wrapped Bitcoin (tBTC), Ethereum (ETH), and Ethena USD (USDe), which will ensure greater convenience and choice for users.

By working on these new assets, the derivatives liquidity protocol expands its audience and helps improve the overall depth of Arbitrum’s DeFi market. The public can try these offerings on Kwenta via the App and see the future of USDx in the Synthetix Arbitrum ecosystem.

This development marks a significant step for the derivatives liquidity protocol in the decentralized finance (DeFi) landscape on Layer-2 solutions.

The above is the detailed content of USDx Unveiled: A Stablecoin and Collateral Instrument for Synthetix on Arbitrum. For more information, please follow other related articles on the PHP Chinese website!

Statement
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn
Exchange trading volume and world rankings, what are the main contractsExchange trading volume and world rankings, what are the main contractsApr 30, 2025 pm 06:45 PM

Exchange trading volume and world rankings are key indicators for evaluating their market influence. Contract trading provides a diverse strategy and risk management tool. Choosing the right contract type requires personal risk tolerance.

Funding fees for perpetual positionsFunding fees for perpetual positionsApr 30, 2025 pm 06:42 PM

The funding fee for a perpetual position is the fee that the holder needs to pay or charge in perpetual contract trading. It is usually calculated every eight hours, affecting the trader's profit and loss and strategy.

Shib History K-lineShib History K-lineApr 30, 2025 pm 06:39 PM

SHIB's historical K-line chart shows its price volatility and market sentiment, helping investors analyze trends and make decisions, but failing to accurately predict future prices.

Which exchange is better for quantitative currency circleWhich exchange is better for quantitative currency circleApr 30, 2025 pm 06:36 PM

In quantitative trading in currency circle, choosing the right exchange is crucial, and liquidity, API support, fee structure, security and regulatory compliance should be considered.

What is the core difference between Huobi's previous Huoxin and OKX's current pay?What is the core difference between Huobi's previous Huoxin and OKX's current pay?Apr 30, 2025 pm 06:33 PM

Neither Huoxin nor OKX Pay directly supports fiat currency payment. Huoxin is mainly used for digital asset management and transactions, and users need to exchange fiat currency through the Huobi Exchange; OKX Pay focuses on digital asset payment and transfer, and users need to exchange fiat currency through the OKX platform.

How to cash out the valuation of total assets in the currency circle? How to withdraw cash to WeChat?How to cash out the valuation of total assets in the currency circle? How to withdraw cash to WeChat?Apr 30, 2025 pm 06:30 PM

The core steps of asset monetization include: 1. Select a compliant trading platform, such as Binance and OKX, to ensure that the platform has a fiat currency withdrawal channel; 2. Sell cryptocurrency and trade through spot or OTC; 3. Bind the collection account, which must be consistent with WeChat's real-name information; 4. To initiate withdrawal to WeChat, pay attention to the amount of cash withdrawal and handling fees.

What are the three giants in the currency circle? Top 10 Recommended Virtual Currency Main Exchange APPsWhat are the three giants in the currency circle? Top 10 Recommended Virtual Currency Main Exchange APPsApr 30, 2025 pm 06:27 PM

In the currency circle, the so-called Big Three usually refers to the three most influential and widely used cryptocurrencies. These cryptocurrencies have a significant role in the market and have performed well in terms of transaction volume and market capitalization. At the same time, the mainstream virtual currency exchange APP is also an important tool for investors and traders to conduct cryptocurrency trading. This article will introduce in detail the three giants in the currency circle and the top ten mainstream virtual currency exchange APPs recommended.

How to view the created nftHow to view the created nftApr 30, 2025 pm 06:24 PM

View your own NFTs on OpenSea, just log in to your account, go to your profile page, and click on the “Created Projects” tab to browse and manage all NFTs.

Hot AI Tools

Undresser.AI Undress

Undresser.AI Undress

AI-powered app for creating realistic nude photos

AI Clothes Remover

AI Clothes Remover

Online AI tool for removing clothes from photos.

Undress AI Tool

Undress AI Tool

Undress images for free

Clothoff.io

Clothoff.io

AI clothes remover

Video Face Swap

Video Face Swap

Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Tools

Dreamweaver CS6

Dreamweaver CS6

Visual web development tools

EditPlus Chinese cracked version

EditPlus Chinese cracked version

Small size, syntax highlighting, does not support code prompt function

SAP NetWeaver Server Adapter for Eclipse

SAP NetWeaver Server Adapter for Eclipse

Integrate Eclipse with SAP NetWeaver application server.

ZendStudio 13.5.1 Mac

ZendStudio 13.5.1 Mac

Powerful PHP integrated development environment

Zend Studio 13.0.1

Zend Studio 13.0.1

Powerful PHP integrated development environment