Overview

USDx is the object of stabilization for the USD synthetic asset in Dollar Protocol.

• USDx Contract: 0x2f6081e3552b1c86ce4479b80062a1dda8ef23e3​

• USDx/USDC 12H TWAP Oracle: 0x54e8fccc1f6789b1ad36eb96713c6836a1f02a4c​

When USDx is trading > $1.05 according to the 12H TWAP, a supply delta is calculated.

• x_12H represents the 12H TWAP price of USDx

• TS represents the total supply of USDx

• CPI represents the price index of the pegged assets. In this case it is USD

• r_lag represents the rebase lag, a governance parameter that serves as a smoothing factor to decrease supply-side volatility

Positive Rebase

Let's take the following example of a positive rebase.

• x_12H = $1.50

• TS = 15,000,000

• CPI = $1

• r_lag = 7

The supply delta in this case would be (1.50 - 1.00) * 15,000,000 / 7 = 1,071,428.57 USDx. In this rebase period, around 1.07M USDx would be minted and distributed to protocol stakeholders.

Negative Rebase

Conversely, let's look at an example of a negative rebase:

• x_12H = $0.90

• TS = 15,000,000

• CPI = $1

• r_lag = 7

The supply delta would be (0.90 - 1.00) * 15,000,000 / 7 = 214,285.71 USDx.

If you have 1000 USDx in your wallet, un-bonded (we will talk about this later in the xBond section), you would see 14.28 USDx debase from your wallet, with a final balance of 985.72 USDx.

1000 USDx / 15,000,000 total USDx * 214,285.71 USDx = 14.28 USDx

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