XUSD is a partially collateralized stablecoin with an innovative stabilization mechanism. Unlike other over-collateralized or fully algorithmic stablecoins, XUSD adopts a partial collateralization model where only a portion of the XUSD supply is backed by collateral. The rest is controlled by algorithms, making XUSD highly capital-efficient and truly stable.
Capital efficiency: No over-collateralization occurs.
Strong stability: Partially backed by assets in the collateral pool, with less reflexivity, avoiding a "death spiral."
