Ouroboros Foundation
  • Introduction to Ouroboros
  • The Ouroboros ($ORX) Token
    • Pumpamentals
    • Launch/Participation Mechanics
    • Onboarding System
    • Minter Audit
    • Contract Addresses
  • Ouroboros Products
    • 🪙USDx Stablecoin
      • ORX Fee Sharing Pool (ORX Staking)
      • Borrowing USDx (USDx Minter)
      • Backstop Staking (USDx Staking)
      • Liquidations
      • Protocol Safety
      • Educational Track
        • 1. USDx Users & What they Care About
        • 2. Your First Loan & What to Monitor While your Loan is Open
        • 3. Participating in Liquidations & USDx Staking Rewards
        • 4. Redemptions & How the Peg Holds
        • 5. Closing Summary & Cheatsheet
      • Risk Disclosure
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  1. Ouroboros Products
  2. USDx Stablecoin
  3. Educational Track

5. Closing Summary & Cheatsheet

A super condensed closing summary on each of the previously presented topics.

Summary

Understanding the previous series of articles will make you an advanced beginner, or even intermediate user of USDx and other systems like it, before the platform is even launched. You can now safely participate in the protocol, with a full view of what to monitor, and how to participate most effectively given the particular angle you wish to approach the system from.

USDx Users & What They Care About

USDx serves four main user types, each with distinct priorities:

  • USDx Traders: Use it as a stable store of value, focus on liquidity and peg stability

  • USDx Leverage Traders: Use loans to amplify gains, monitor liquidation levels and redemption risk to maintain collateral exposure

  • USDx Yield Speculators: Focus on yield opportunities through LP rewards and Backstop Pool

  • USDx Arbitrageurs: Capitalize on peg deviations and liquidation opportunities

Your First Loan & What to Monitor

Loan management is central to USDx:

  • Minimum collateral requirement: $2,500 worth

  • Key metrics: Liquidation Price, Safety Buffer, MCR/CCR ratios

  • Monitor three main risks: Redemptions, Liquidation Risk, Recovery Mode

  • Keep loan health above CCR (150%) for maximum safety

  • Watch redemption queue position to maintain collateral exposure

Liquidations & USDx Staking Rewards

The Backstop Pool is a key source of system health and rewards:

  • Pool holds USDx for liquidations

  • Rewards include ORX inflation and discounted collateral rewards during liquidations

  • Liquidator reward: 200 USDx + 0.5% of collateral for pressing a button

  • ORX Rewards vest like TitanX deposits in ORX Minter

  • Compound your USDx regularly, as the amount of USDx you deposit is not a static entity, and will be changed by liquidations!

Redemptions & Peg Mechanics

Peg stability maintained through multiple mechanisms:

  • Soft pegging: Natural market forces and $1 Schelling point

  • Hard pegging: Profitable arbitrage opportunities above/below $1

  • Redemption process includes escrow period

  • Failed redemptions possible if loan sizes don't align

  • Redemptions progress from least to most collateralized loans

  • Buy USDx below $1, and profit.

Previous4. Redemptions & How the Peg HoldsNextRisk Disclosure

Last updated 5 days ago

🪙
  • Summary
  • USDx Users & What They Care About
  • Your First Loan & What to Monitor
  • Liquidations & USDx Staking Rewards
  • Redemptions & Peg Mechanics