xDollar.Fi x Crystl.Finance AMA Recap— 09/15 ✖️💎

What an exciting day today at Crystl.Finance! Why, you might ask? Well, it’s because we had the pleasure of having an AMA with xDollar.Fi — “The First Cross Chain Interest-Free Lending Platform”. In this article you will find a summary of this AMA and learn what our friends at xDollar have been up to 😉!

Crystal.Finance Questions

KingD (@King_D3) and Light (@Portia0101), together with the amazing Captain X from xDollar 🤩 (@CaptainXDO) hit off the AMA with a few questions prepared by the Crystl.Finance team.

Q1) KingD:
Care to introduce yourself, the xDollar team, and your project?

A) Captain X:
Yes ser

I am Captain X, cofounder at xDollar. Our team has a very diverse background across technical, research, financial, marketing, and community. All team members are enthusiastic DeFi farmers and believe blockchain would transform our lifestyle one day.

Let’s talk about xDollar

In brief, xDollar is the first multiple chain multiple collateral stablecoin lending platform. It is non custodial which users own their own borrowed account. It’s 0 interest rate, 110% collateral ratio and 1:1 redeemable stablecoin. xDollar is launched on Polygon, Avax and soon on Arbitrum!

Q2) Light:
You recently went cross chain, how has that experience been so far for you guys?

A) Captain X:

Yeah

It’s our pleasure to share what we learnt on other chains here. As I Know polycrystal is planning for multichain vision too

Technically right now we are multiple chain phase. Working on cross chain part with Anyswap for bridge solution. We are clear about our multichain vision since beginning and expecting this to come one day. The overall experience is great as we get to talk with awesome projects and teams. Everyday is a new learning experience. The team learnt that one needs build fast, deploy firmly and grow gradually. And lastly one can’t go long without a truly partner alliance network.

Q3) KingD:
The Liquity “borrowing a minted stablecoin against the native token” model is super interesting, care to explain it to our users a little bit, and what made xDollar “friendly-fork” Liquity?

A) Captain X:

Yes that’s very good question indeed

First we truly acknowledge what Liquity has designed a provable stablecoin lending mechanism with eth as collateral.

Why liquity not other lending protocols? It’s because liquity has most decentralized way to run its system and having an innovative way to keep the system stability even with a single asset. This is very impressive. And they can offer no interest and the lowest collateral ratio if you compare those money market. They charge interest while having high collateral ratio to keep the platform safe. You see an edge here. User can borrow at no interest and maximize their capital efficiency!

And now we will talk how we are different than liquity or at least innovating on top of giant shoulders.

We talked good about liquity and now I am shedding some lights what xDollar does differently

However the Liquity doesn’t support any other native token other than Eth. That’s where xDollar is coming to fill the gap of unifying all native chain token. The market is huge for side chain token as you can see rising waves of public chains pouring money to incentive their DeFi ecosystem.

Too excited to share what’s coming and wanted to share this with Polycrystal fam

What made xDollar us “friendly fork” is our research and product team studied well about Liquity and we are clear we want to do long term in the stablecoin lending market. Yet we are not quite done with friendly fork label. We are innovating on top of giant shoulders. And I want to share an exciting news about xDollar V2, mc² platform that will make xDollar difference than other liquity forks out there. We will release a white paper soon detailing the advanced functions of V2 and how this design helps to stabilize the system. and right now xDollar v2 is under contact review by certik.

Twitter Questions

After the round of questions from Crystl.Finance we moved onto the questions asked on Twitter.

Q1) @Ykol4b17 from Twitter:
Recently there has been a large influx of stablecoin protocols based on minting through collateral — what makes Xdollar stand out from the rest of these?

A) Captain X:

We saw a rising of stablecoin protocol it’s good and bad — good meaning we are on the right direction for the huge potential of stablecoin market; bad meaning we needs differentiators to stay ahead of others

The basic features that easily stands out are 0 interest rate, 110 collateral ratio and redeemable stablecoin. The first one is easy to understand. Second one can use up of 90% collateral value. And third is one can redeem stablecoin for collateral.

The advanced features we offers are multi chain multi collateral which is big difference than others.

Dao governance is also going to implement soon to add value of xdo token

And xdo stacker gets a dividend share of platform revenue.

Q2) @RJM_500 from Twitter:
A simple question. How do you avoid volatility of xUSD around the $1 parity? What mechanisms do you use for this?

A) Captain X:

On v1 we actually witness the volatility of xusd due to higher demand over xUSD to do yield farming on Polygon and Avax. The recent classic partnership is with frost finance. However we have highly confidence that we are still in early stage for xUSD to find user adoption. As our research team has detailed in this article, xUSD will eventually back to one just like dai:

The Stability of XUSD is guaranteed by macroeconomic models

So we took note of xUSD price stability concern into the V2 design. We will introduce a working solution to bring xUSD back to $1 eventually. This is proven with dai MCD system.

For how this actually peg mechanism, there are two systems — soft peg and hard peg

The floor of xUSD will always be $1 as one can redeem xUSD at $1

The hard floor is set by 110% collateral ratio which indicating 1.1$ is the ceiling. Any price above that is a no brainer arb chance.

For soft peg, xUSD is eventually going to $1 and people can mint xUSD to sell for premium above $1. I hope this clarifies and I don’t too technical

Q3) @Zackridersid from Twitter:
how do u propose that it’s a interest free lending platform where nothing is given for free?

A) Captain X:
Yay this is good one. Actually the platform does charge fee but no interest rate. And this fee is just one time fee when one borrowing xUSD or redeeming collateral with xUSD. Think like this as bank services where you get charged for using the platform. Nothing hidden and this revenue are shared among XDO stackers

https://dune.xyz/leifu/xDollar

You can check protocol revenue earned on Polygon. This dashboard is built by our talented community member.

Community Questions

Lastly, the AMA went into a round of public community questions. The following questions were selected for answers:

Q1) @Ranihumble on Telegram:
As your project is built and grown, how do you take into account community feedback, contributions, and requests?

A) Captain X:
Yes this is very nice question in which I didn’t cover much earlier. xDollar is a fair launch and community driven project. A lot of our progress is witnessed together by the community. We have several self initiative program like meme contest, ambassador program, community bd program. We do have xdo community pool for contribution made fo grow xDollar. We believe in those who contribute deserve well return!

Q2) @fionaweber99 on Telegram:
Can you share some Details about Recent Major Achievements done by your project? Also, what are the Future Roadmap & Targets of your project?

A) Captain X:
This is another good question about forward looking vision of xDollar. We have been in the space for more than three months. It’s good and we feel like we have accomplish a lot. We have cool partners like Polycrystal on Polygon, naming a few others are Dfyn, iron finance, Kyber network, firebird, etc. besides we also launched on two chain to qualify as multiple chain plus “multi collateral” as of now

What is looking ahead is our v2 white paper and official launch 🚀 we also have launched b2b stablecoin solution with sx network to create their own native stablecoin. Soon you will hear more news on official partnership with well known public chains. This is what we push harder in next quarter-accelerating multiple chain deployment.

Q3) @abdullahsayid on Telegram:
What’s the difference between xdollar and polyquity?

A) Captain X:
This is short but sharp question. I like this. To be honest, we are research and development oriented team. We have our own xDollar research team to optimize parameters as well as product research. Frankly we looked deeply on all existing forms of liquity and analyzed what works best and not best for long term. So I am confidence to say that xDollar is a long term project which hasn’t incentive its token liquidity just for the sake of pump & dump scheme. We gradually develop and innovate into a step where we are longer views as fork. Another difference is xDollar is deeply rooted in the community. We have strong early supporters whom care about the platform and continue to suggest improving the platform. Lastly we are born with multichain and multicollateral vision since beginning so our tokenomics is well designed. TLDR we are a long term project to transform stablecoin lending industry on all side chains!

Thanks For Reading!

That’s all for the AMA between Crystl.Finance and xDollar!

We’re always on the lookout for the hottest projects in the DeFi space. So, whether you are a DeFi explorer looking to learn more about projects comprising the DeFi ecosystem, or a project owner looking for partners — be sure to connect with us on our socials!😎

Twitter: https://twitter.com/PolyCrystal_
Telegram: https://t.me/polycrystalfin

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