On Tuesday, Hong Kong’s Hex Trust Group unveiled the launch of stablecoin USDX. The asset has been issued on Layer-1 blockchain Flare, becoming the first native stablecoin on the network.
The stablecoin is backed 1:1 against the dollar and other equivalently-valued assets. According to the press release, the reserves mainly consist of one to three month Treasury-bills that are held by “regulated” top-tier financial institutions.
Flare raised $35 million in a private round earlier in February this year. This L1 “network for data” fosters the creation of smart contract protocols, with the focus on pricing oracles.
Along with being used on DeFi lending and borrowing protocols, USDX can also be staked. A dedicated T-pool has been created by decentralized credit marketplace Clearpool. Users do not have to commit to any lock-up period. They can stake and unstake as they please.
As far as the mechanics are concerned, USDX stakers on Clearpool will be fetched with cUSDX. That, in turn, can be used as collateral in Flare Labs’ FAsset system, putting the collateral to work even when it’s locked. Commenting on the launch, Jakob Kronbichler, the CEO and Co-founder of Clearpool said,
“Launching a custom T-Pool for USDX on Flare is great for both everyday users who want to earn a real world yield from their stable holdings, and for FAssets agents who can earn additional yield for their USDX while it’s collateralized in the system.”
Flare’s native token FLR noted a 6% pump on the daily, with its market cap inching towards $1.177 billion. The total value locked on the protocol is currently hovering north of $8.8 million.
Hex Trust managed to cut costs by around 20% throughout 2023. The trust’s Co-founder and Chief Executive Alessio Quaglinirec recently asserted that he sees the market’s revival “directly translating into profitability.”
