# 5. Closing Summary & Cheatsheet ### **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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.ouroboros.foundation/ouroboros-products/usdx-stablecoin/educational-track/5.-closing-summary-and-cheatsheet.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.