USDXL is a flexible, decentralized overcollateralized synthetic dollar on the HyperEVM Mainnet. It exists as an ERC20 token designed to maintain a stable value targeting parity with the U.S. dollar, regardless of market conditions. USDXL integrates natively into the HypurrFi Protocol as a new asset, making the interaction process familiar to users of the protocol:USDXL follows a simple mint and burn mechanism:
Minting: USDXL is created when users supply collateral worth more than the USDXL they wish to mint
Burning: USDXL is burned when users repay their debt or during liquidations
Interest: USDXL accrues interest when borrowed, with rates determined by HypurrFi Governance
While borrowing USDXL feels similar to borrowing other assets on HypurrFi, its underlying implementation is unique. USDXL’s configuration includes special mechanisms designed to maintain price stability and ensure efficient market operation.Key implementation features:
Direct integration with HypurrFi’s lending markets
The interest rate mechanism is fundamental to USDXL’s stability. Unlike traditional lending markets where rates fluctuate based on supply and demand, USDXL’s interest rate model is: