UXD converges on the Ethereum ecosystem
UXD is gravitating toward the Ethereum ecosystem. In this situation and with this step, it will be in a position to utilize a variety of approaches through the Ethereum rollups, and also, with the adequate utilization of an interoperability solution, it will find itself in the position of being able to effectively connect with a lot more inclined users, leading to the obtaining of further liquidity.
There are some differences between UXD (Solana) and UXD (Ethereum, rollups) in this specific case scenario. In the case of the UXD (Ethereum, rollups), it happens to be ably supported by various approaches right through the Ethereum and rollups, with the correct usage of an interoperability solution. However, where the UXD (Solana) is concerned, there happen to be limitations with regards to being supported with approaches for Solana only.
At the present moment in time, the Solana team members are carrying out work on three approaches to Ethereum. The first happens to be the delta-neutral position on optimism. It will presumably be positioned on Perpetual Protocols. The second one uses Rage Trade’s delta-neutral vault and is the delta-neutral position on Arbitrum. The third one, which is also the last, entails using the yield aggregators Beefy Finance on Ethereum, Arbitrum, and Optimism. All of these strategies will help to bring the price of UXD to USD into a more reasonable range.
In the middle of Ethereum and rollups, UXD will also become completely fungible. Users can either mint or receive UXD back on Ethereum, rollups, and the chains that connect them. The fundamental situation in this case will be the application of LayerZero as an interoperability solution. The UXD Protocol will continue to focus on achieving minimal volatility and a higher yield.
UXD Protocol is also going to be in the business of building a fresh governance token to be offered conventionally on Ethereum. Through this, users will become capable of connecting governance tokens with rollups, which in turn will open up cross-chain functions. The money made by the UXD Protocol on Ethereum and rollups will then be utilized to purchase the governance tokens.
Finally, the governance token will be allotted to UXP (Solana) token holders. UXD on Ethereum and rollups need insurance funding in order to be able to balance probable losses coming from a variety of approaches. The proposal is to transfer $35 million USDC from Solana to Ethereum in order to stand up for UXD on Ethereum and many other rollups.