Hi guys, please feel free to discuss our xGov proposal here:
Author: Giles Campbell, Nimi
Advisors: Michael Cotton, AJ Milne
Company Name: xBacked
Focus Area: Depeg Mechanism, Dynamic Loan Rates, Zap Function
Open Source: No
Amount Requested: 175,000 ALGO
This proposal outlines the development of innovative features within the xBacked ecosystem on Algorand. We aim to introduce a new peg mechanism with dynamic loan rates, ensuring the stability of the pegged value. Additionally, we plan to build a zap function for vaults, enabling users to bring one side of the LP, allowing the protocol to mint xUSD for the other side. These vaults will operate on an auto-compounding mechanism, gradually paying off loans and enhancing the ecosystem’s resilience.
Design and Implement Dynamic Loan Rate Mechanism: Develop a robust mechanism that dynamically adjusts loan rates based on the peg’s stability. If xUSD depegs, falling below the desired $1 value the protocol interest rates will increase with the increase varying depending on the severity of the depeg.
Integration with xUSD Protocol: Integrate the dynamic loan rate mechanism seamlessly into the xUSD protocol.
Smart Contract Development: Develop and deploy smart contracts to enable the dynamic adjustment of loan rates.
Design and Development:
Create a user-friendly zap function allowing users to bring only one side of a whitelisted LP, triggering the protocol to mint xUSD for the other side with the LP becoming collateral for the xUSD issued.
Implement an auto-compounding feature within vaults to ensure continuous rewards are compounded into an increased collateral position.
Conduct thorough security audits and extensive testing to ensure the reliability and safety of the zap function and auto-compounding mechanism.
- Nimi: Lead blockchain developer.
- Giles Campbell: Support
- Michael Cotton
- AJ Milne
x-Backed spearheaded the development of a decentralised, permissionless stablecoin known as xUSD on Algorand. In contrast to conventional stablecoins backed by fiat currency, xUSD derives its value from a diverse range of digital assets, including goBTC, gALGO, mALGO, GOLD$, SILVER$, goETH, and ALGO and more. This unique approach not only provides users with a stablecoin solution but also enables them to hedge against market volatility. The xUSD stablecoin is easily minted on the x-Backed platform, allowing users to unlock capital at a low reliable interest rate. By deploying xUSD to partner platforms, users can earn yield, adding to the stablecoin’s appeal. xBacked places a strong emphasis on vault health monitoring, urging users to maintain healthy collateral ratios to avoid liquidation. This commitment underscores x-Backed’s dedication to fostering a secure and reliable decentralised finance (DeFi) environment on the Algorand blockchain.
This proposal seeks funding of 175,000 ALGO to implement new and exciting features within the xBacked ecosystem. We aim to introduce a dynamic loan rate mechanism to stabilise the peg and a zap function for vaults, providing users with a more efficient and user-friendly experience. The auto-compounding mechanism within the vaults will enhance the ecosystem’s sustainability by gradually paying off vault holder loans.
- Peg Stability: Introduce a dynamic loan rate mechanism to maintain stability in the pegged value.
- User-Friendly Vaults: Enhance user experience with a zap function for vaults, simplifying the process of minting xUSD.
- Auto-Compounding Rewards: Vaults will operate on an auto-compounding mechanism, ensuring continuous rewards are reinvested, contributing to the long-term health of the ecosystem.