UXD is the latest in a long line of algorithmic stablecoins vying for market share against larger, centralised competitors such as Circle and Tether.
UXD Protocol (previously Soteria), a stablecoin supplier, has raised $3 million in a fundraising round lead by Multicoin Capital. Alameda Research, CMS Holdings, Defiance Capital, and others participated in the round. The UXD Protocol is based on Solana, a high-throughput blockchain network.
The UXD Protocol is an algorithmic stablecoin that is fully supported by a delta neutral position using perpetual swaps. To generate the delta neutral stance, the stablecoin will be issued natively on Solana, and we will interact with eternal swap protocols. Users will be able to issue and redeem UXD for a variety of cryptocurrencies in a secure manner.
Holders of UXD will get the financing rate generated by the delta neutral position, a yield that is native to the protocol.
In a series of tweet, UXD Protocol explains about the new features of the blockchain operations and also about the fund raise.
The funds will be used for testnet and mainnet as confirmed by the firm.
With a market cap of $117 billion and a daily trading volume of up to $100 billion, the stablecoin market is massive. However, centralised stablecoins such as USDT, USDC, and BUSD account for more than 85% of the market cap of stablecoins and are at risk of being censored by hostile third parties.
At all times, the market requires a decentralised, crypto-native stablecoin that is uncensorable, stable, and scalable. UXD Protocol aspires to be the market’s equivalent.
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