xBacked recently announced the official launch of its mainnet. The Algorand-backed DAO also launched xUSD, its over-collateralized stablecoin.
Supported by collateral worth more than the coin’s value, the stablecoin was developed in Algorand. Several decentralized crypto assets are backing the coin to address market volatility. xBacked is currently aiming to empower the virtual economy and unlock capital.
Austin Wilshire, one of the lead contributors at xBacked talked about the development. According to Austin, the DAO believes in blockchain and digital assets to be the future of finance. These assets will establish an accessible, transparent, and safer financial system.
Stablecoins will also be crucial for both DeFi and blockchain ecosystems. These assets have already amassed a market cap of 150 billion dollars. Crypto enthusiasts and investors are using stablecoins for earning yield, borrowing and lending, and conducting payments.
As for xUSD, xBacked released an official post to inform users about the coin’s features. Here is a quick overview of them:
- It’s aligned with regulations by being ≥ 100% backed
- It boasts a minimum collateral of 115%
- It allows users to stake xUSD
- It isolates vaults from each other
- It is safe from volatile swings in demand and supply
- It has a dedicated governance token backstop
- It is resistant to censorship
Alongside the features, xBacked also mentioned the steps to mint xUSD. Here are the steps:
- Start by getting MyAlgo Wallet, Exodus, or Pera Wallet and buy ALGO
- Start a vault by minting the minimum amount of 100 xUSD
- Start deploying xUSD to Folks Finance or Pact to earn the yield
- Assess the vaults to avoid liquidation
Seeing how the users are closely following the DAO, xUSD is also expected to be a major hit.