gxUSD Stablecoin
Overview
gxUSD is a decentralized, overcollateralized, yield-bearing stablecoin pegged to $1 USD. Users mint gxUSD by locking ETH or BTC as collateral through the CDP (Collateralized Debt Position) module. The protocol earns revenue through stability fees charged on minted gxUSD. The CDP module is built and operational, with oracle prices sourced from CoinGecko and Chainlink/Pyth feeds.
How It Works
Minting gxUSD
- Deposit ETH or BTC as collateral into a GX Vault (CDP)
- Mint gxUSD up to the collateralization limit (minimum 150% ratio)
- Use gxUSD for trading margin, DeFi, or stablecoin needs
- Repay gxUSD + stability fee to unlock collateral
gxUSD Savings Rate
Hold gxUSD in the GX Savings module to earn yield:
| Parameter | Value |
|---|---|
| Savings Rate | Variable (currently 3-5% APY) |
| Source of Yield | Stability fees paid by borrowers |
| Minimum Deposit | None |
| Lock-up Period | None — withdraw anytime |
Key Parameters
| Parameter | Value |
|---|---|
| Peg | 1 gxUSD = 1 USD |
| Minimum Collateral Ratio | 150% |
| Liquidation Threshold | 130% |
| Stability Fee | 3-8% annually (governance-controlled) |
| Liquidation Penalty | 13% |
| Supported Collateral | ETH, BTC |
Collateral Types
| Collateral | Min Ratio | Liquidation Ratio | Stability Fee |
|---|---|---|---|
| ETH | 150% | 130% | 5% |
| BTC | 150% | 130% | 5% |
Peg Stability
gxUSD maintains its $1 peg through several mechanisms:
- Overcollateralization — Every gxUSD is backed by >150% collateral value
- Liquidation Engine — Undercollateralized vaults are liquidated to maintain system solvency
- Stability Fee — Interest charged on minted gxUSD regulates supply
- Savings Rate — Yield on held gxUSD creates demand floor
- Arbitrage — If gxUSD trades above $1, minters sell gxUSD; if below $1, holders redeem
Use Cases
| Use Case | Description |
|---|---|
| Trading Margin | Use gxUSD as margin for perpetual futures on GX Exchange |
| DeFi Collateral | Use gxUSD as collateral on GX Lend |
| Yield Earning | Deposit in GX Savings for 3-5% APY |
| Stablecoin Swaps | Swap gxUSD/USDC/USDT in the GX Stable Pool (0.04% fee) |
| Liquidity Provision | Provide gxUSD liquidity in GX Swap pools |
Revenue Model
| Revenue Source | Rate |
|---|---|
| Stability Fee | 3-8% annually on all minted gxUSD |
| Liquidation Penalty | 13% of liquidated collateral |
Revenue at scale:
- $50M gxUSD minted at 5% stability fee = $2.5M/year
- Liquidation revenue is variable based on market conditions
Source
gxUSD is built on a CDP module with oracle integration (CoinGecko real-time prices, Chainlink/Pyth support). The CDP module is fully operational on GX Chain.