Ripple Partner Flare Networks Partners with Hex Trust to Integrate USDX Stablecoin into Billion-Dollar Stable Market
Flare's Plans for USDX Stablecoin Launch
The USDX stablecoin is designed to help advance the Flare ecosystem. Based on the partnership agreement, Hex Trust will use its tokenization division, HT Digital Assets, to develop USDX while overseeing the launch of the stablecoin.
The USDX maintains a secure 1:1 peg to the US dollar, supported by a reserve comprised primarily of 1-3 month Treasury bills held by reputable tier one financial institutions. This ensures stability and trust in the value of the stablecoin, making it a reliable medium for various decentralized finance (DeFi) applications.
These unpegging trends have highlighted how crucial it is to preserve the stability of stablecoins. This stability is important for DeFi applications such as lending, borrowing, and perpetual futures exchanges, where predictable asset values are essential for smooth operation.
According to the details of the recent announcement, Flare will work with Clearpool, a blockchain-based credit marketplace to launch the stablecoin USDX. As a result, users can stake their USDX for real yield via a dedicated T-Pool established by Clearpool.
This staking mechanism provides flexibility and allows users to enter and exit at will without any lock-up period. This maximizes returns by capturing both the base yield and additional incentives offered in the form of FLR tokens. Additionally, users staking USDX on Clearpool will receive cUSDX, a collateralized token that can be used in Flare's FAsset system .
This system allows users to mine non-smart contract assets for DeFi applications on Flare
