What is USX?

USX is a fully collateralized neodollar built by Scroll that combines TradFi and DeFi to deliver stable rewards.

Unlike other stablecoins, USX will be private, gasless, and spendable in real life, possible only through Cloak (Scroll's privacy layer), chain-level customizations, and payment partners.

Core Components

USX is designed to provide the user with optimized yields. There are fundamentally 2 tokens: USX and sUSX (staked USX).

• USX: Maintains a stable peg to the US dollar and is always redeemable 1:1 with USDC.

• Staked USX (sUSX): A staked version of USX. Users who stake their USX will receive sUSX, which enables them to a share of protocol generated yield.

Yield Source Breakdown & Mechanism Design

• Offchain market-neutral arbitrage: Hedge fund strategies such as basis trades, spot–futures, and cross-exchange arbitrage, uncorrelated to crypto markets.

• Onchain delta-neutral strategies: Blend’s execution layer to amplify exposure across lending, yield-tranching, and liquidity provision while hedging risk.

• Lending and borrowing: Additionally, USX will be accepted as collateral on Honeypop (Scroll’s native money market), enabling looping for higher yields.

• Yield and points trading integrations: USX and sUSX will be supported on platforms that allow users to tokenize and trade yield exposure.

Reserve Fund

To strengthen capital protection, USX maintains an onchain reserve fund designed to cover potential losses from offchain trading or onchain yield strategies.

• The protocol allocates 50% of its 10% protocol fee toward building this reserve.

• The fund targets a minimum coverage of 2% of all deployed principal, with no current cap on size.

• It acts as an insurance buffer, protecting the protocol and users from unexpected drawdowns.

• The community will be notified before implementing any changes to the fund.

The reserve fund contract will be published and verifiable once USX is live on mainnet.

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.