Hex Trust Group, a prominent crypto custodian headquartered in Hong Kong, has introduced USDX, marking the inaugural native stablecoin on the layer-1 blockchain Flare.
First Native Stablecoin Released by Hex Trust on Layer-1 Blockchain Flare
This stablecoin can be staked on the Flare blockchain and is backed 1:1 by US dollars or comparable assets.
The introduction of USDX is expected to improve Flare's decentralized finance (DeFi) operations by giving users and developers new avenues for interaction.
The stablecoin will feature a staking mechanism in a private T-Pool established by Clearpool, a decentralized lending marketplace, in addition to being incorporated into multiple lending protocols and exchanges.
In exchange for staking USDX, users will obtain cUSDX, which they can utilize as collateral for DeFi protocols on the Flare network. The goal of this integration is to give the Flare ecosystem a reliable, revenue-producing asset.
Hugo Philion, co-founder of Flare, stated, "USDX and Clearpool's partnership on Flare delivers a stable asset with 1:1 backing that gives instant access to real-world returns."
The fact that this would function even if their steady collateral is locked in the system will be very helpful for asset dealers, he added.
Hex Trust CEO Alessio Quaglini outlined the advantages of USDX, saying it will "facilitate transactions" and "reduce volatility in the cryptocurrency market."
For Flare, the introduction of USDX represents a noteworthy turning point in the development of its DeFi capabilities.
In a private fundraising round earlier this year, Flare raised $35 million from investors such as Aves Lair and Kenetic. DeFiLlama reports that the blockchain's total value locked (TVL) is presently $8 million.
The introduction of USDX underscores Flare's dedication to broadening its ecosystem and furnishing robust financial instruments for its users. With USDX's debut, Flare stands ready to draw in more participants and substantially elevate DeFi activity within its network.
May 2024, Cryptoniteuae