What is USX?

What is USX?

USX is a fully collateralized stablecoin pegged 1:1 to the US dollar and built on Scroll. There are three core tokens: USX (the stablecoin), sUSX (yield-bearing staked version), and gUSX (governance token). USX maintains its dollar peg through 1:1 redeemability with USDC and is designed for payments, lending, borrowing, and yield generation across the Scroll ecosystem.

The Three Tokens

USX: The Stablecoin

USX maintains a stable 1:1 peg to the US dollar and is always redeemable 1:1 with USDC. It's designed as a stable unit for payments, lending, borrowing, and liquidity provision within the Scroll ecosystem.

sUSX: Yield-Bearing Staked USX

sUSX is the yield-bearing version created by staking USX. When you stake USX, you receive sUSX which represents your share of the protocol's yield-generating vault. Users earn up to 15% APY automatically just by holding sUSX - no additional action required.

gUSX: Governance Token

gUSX is the governance token that enables holders to participate in USX.Capital's decision-making processes and protocol evolution.

How USX.Capital Generates Returns

USX generates yield through multiple onchain strategies deployed across DeFi protocols via Blend's execution layer. Funds are deployed across lending, yield-tranching, and liquidity provision while hedging risk to generate stable, predictable returns.

Diversified Strategy Approach

Returns come from:

• Lending protocols (Aave, Morpho, Euler)

• Yield-tranching platforms (Pendle)

• Liquidity provision across multiple pairs

• Delta-neutral hedging to reduce volatility

This diversification reduces risk and ensures a sustainable return profile across market conditions.

Target Yield

USX targets an estimated up to 15% annual return based on onchain strategy performance. This represents intrinsic yield generated purely from strategies and not from token rewards or incentives. Past performance does not guarantee future results.

Key Use Cases

Lending and Borrowing

USX will be accepted as collateral on Scroll Lend (Scroll's native money market), enabling users to loop their positions for higher yields.

Yield and Points Trading

USX and sUSX will be supported on platforms that allow users to tokenize and trade yield exposure, providing additional liquidity opportunities.

Providing Liquidity

By providing liquidity to USX trading pairs, you earn passive income through trading fees. These trading fees are swap fees through DEXs.

Redemption and Stability

USX is fully redeemable 1:1 for USDC with a 14-day redemption period, ensuring you can always exit your position at the peg price.

Capital Protection: The Reserve Fund

USX.Capital maintains an onchain reserve fund specifically designed to cover potential losses from yield strategies, protecting both the protocol and users from unexpected drawdowns.

Reserve Fund Details

• Initial Funding: $5 million worth of SCR, plus governance tokens earmarked upon launch

• Allocation: 50% of the 10% protocol fee is directed toward building this reserve

• Minimum Coverage: 2% of all deployed principal, with no current cap on size

• Role: Acts as an insurance buffer against strategy underperformance

• Transparency: The reserve fund contract is and verifiable at https://scrollscan.com/address/0xD09e956353Fc641792a0F1a7d748773358848F65.

Community Governance

The community will be notified before any changes to the reserve fund are implemented, ensuring transparency and decentralized decision-making.

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Common Questions

Q: What's the difference between USX and sUSX?

A: USX is a stable stablecoin pegged 1:1 to the dollar with no yield. sUSX is the yield-bearing version that accrues up to 15% APY, automatically when held.

Q: Is USX always redeemable?

A: Yes, USX is always redeemable 1:1 for USDC. Direct redemptions take 14 days, while instant swaps are available through liquidity pools.

Q: What is gUSX?

A: gUSX is the governance token. Holders can participate in protocol decisions and vote on important changes.

Q: How is the reserve fund used?

A: The reserve absorbs losses from yield strategies before impacting sUSX holders. It acts as an insurance buffer.

Q: Can I lose my principal?

A: USX principal is protected through collateralization and the reserve fund. sUSX may experience drawdowns if strategies underperform, though reserves help mitigate this.

Q: Where does yield come from?

A: Yield comes from onchain strategies (Aave, Morpho, Pendle, etc.) managed through Blend, not from token incentives.

Please note that USX and sUSX each bear certain risks, given their complex nature. You should not mint or interact with these components if you are unfamiliar with cryptocurrencies or the risks involved. For our full risk disclosure statement, please refer to important legal disclosures and risk disclaimers.