xDollar x PolyCrystal
We’re very excited to announce the latest project to join up with the Crystal Crew, xDollar!
As of (insert pool date here once confirmed), you will be able to stake $CRYSTL to earn $XDO
xDollar is truly doing some innovative stuff when it comes to lending platforms and stablecoins on Polygon. You can find their docs here.
They have a long term vision which aligns directly with ours focusing on providing interest free loans across multiple blockchains, as well as adding a wide repertoire of assets to their list of accepted collaterals.
Lots of lending platforms allow one or two regular mainstream coins, but it could be interesting to see what kind of tokens make their way onto the whitelist in the future.
$xDO is the share token for the xDollar platform. Users of the xDollar platform are rewarded with xDO and MATIC for providing liquidity in the form of minted $xUSD to the “stability pool”, which helps to provide security to the platform. You can read more about the stability pool here . $xDO is designed to collect fees from the xDollar platform,
and to be used as a governance token in the future.
Read more on $xDO here.
xUSD is a collateralized stablecoin that is minted by providing collateral in a Trove on the xDollar platform. At the moment, MATIC is the only source
of collateral, but xDollar has made it very apparent that they intend on allowing users to use a number of tokens in the future as a way of providing
collateral in the form of MATIC in order to mint xUSD
Basics of the xDollar Mechanism
The xDollar platform has arguably one of the most interesting approaches to collateralized lending, and blockchain projects in general! They operate on a model of third-party front-ends, meaning that the core development team can focus on securing the platform, and using funds accrued to contribute more to tokenomics, use-case, and stability, without having to worry about a web development budget. Currently, there is only one front-end operated by MCN Ventures, you can find it here
It also means that anyone can integrate the xDollar platform with their project,or anyone can spin up a stand-alone xDollar front-end, adding an additional layer of decentralization
xDollar has a number of stability mechanisms, such as a redemption function that opens up when the price of xUSD falls below the $1 peg price, allowing xUSD to be exchanged at face value for the underlying collateral. You can read the full details on redemption and what it means here.
This is accompanied by the algorithmically determined borrowing fees, which increase with the rate of redemptions happening on the platform, leading to a reduction in new xUSD entering the market, reducing supply and helping xUSD retain its peg.
There is quite a bit to the xDollar platform, and it is highly recommended that you understand how the platform works before beginning to use it (as is the case with all DeFi projects! DYOR), as there are a variety of ways to contribute, earn, and learn more about what kind of really incredible things are possible through Decentralized Finance! If you’re itching to get started you can find their docs here!
xDollar aims to make stablecoin lending less scary, much easier, and much more decentralized with a long term, future-friendly mission of being compatible across all blockchains.
We’re happy to have them onboard the Crystal Crew, as our goals run in parallel!