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What is USDXL?

USDXL is a decentralized overcollateralized stablecoin that is fully backed, transparent, and native to the HypurrFi Protocol on HyperEVM.

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How is the value of USDXL kept stable?

USDXL maintains its stability through market efficiency mechanisms:

  • If USDXL trades above $1, arbitrageurs can profit by minting at $1 and selling at market price.
  • If USDXL trades below $1, users can profit by buying at market price and repaying debt at $1.
  • These arbitrage opportunities help maintain the peg through natural market forces.

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How to mint USDXL?

Users can mint USDXL by:

  1. Supplying supported assets as collateral to HypurrFi
  2. Maintaining required collateralization ratios
  3. Borrowing USDXL against their collateral
  4. Continuing to earn interest on their supplied collateral

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How to borrow USDXL?

The borrowing process is straightforward:

  1. Supply Collateral to HypurrFi
  2. Enable collateral for borrowing
  3. Borrow USDXL
  4. Repay USDXL plus accrued interest (calculated in real-time)

All interest payments go directly to the HypurrFi DAO treasury, contributing to protocol sustainability.

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How is USDXL different from other assets in HypurrFi markets?

USDXL has several unique characteristics:

  • Fixed oracle price at $1
  • Transparent and immutable smart contract design
  • Interest rates set by HypurrFi DAO
  • Interest payments go to DAO treasury instead of suppliers
  • No supply side in the traditional sense

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Which assets can be used as collateral for USDXL?

Assets available in the HypurrFi Protocol can be used as collateral for USDXL, subject to:

  • Risk parameters set by governance
  • Collateralization ratios
  • Market-specific requirements

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Who manages the USDXL supply?

The HypurrFi DAO manages:

  • Total USDXL supply
  • Interest rates
  • Risk parameters
  • Protocol upgrades
  • Market integrations

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How does USDXL handle liquidations?

Liquidations work similarly to other assets in HypurrFi:

  • Positions become eligible for liquidation when health factor falls below 1
  • Liquidators can repay up to 50% of the outstanding debt
  • Liquidators receive collateral at a discount
  • Process helps maintain system health

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Can USDXL be used in flash loans?

Yes, USDXL supports flash loans:

  • No upfront collateral required
  • Must be repaid in same transaction
  • Follows ERC3156 flash loan standard
  • Useful for arbitrage and liquidations