Practical Overview of USDX
Practical Overview of USDX
The diagram below, “Figure 1,” visualizes the 1st degree flow of value of USDX from the time an asset is tokenized and given a USDX line of credit (“USDX-Enabled”) through the first interest/yield payment is due. Existing TradFi solutions offer a similar flow to the left side of Figure 1, the USDX stablecoin and 24/7/365 liquidity at the retail level add new value.
Institutions have capitalized on basis trades and arbitrage like the right side of Figure 1. They could borrow $100MM at 6% APR and deploy it to a highly-liquid fund that pays 9% APY.
USDX and opportunities set up to accept it bring this opportunity to anyone.
USDX significantly enhances the efficiency of existing frameworks, introducing broader and more accessible liquidity, and making better outcomes to both retail and institutional users.
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