The Lending Machine of USDX and KAVA: Practical Logic of Stablecoin Minting
USDX is a crypto-collateralized stablecoin in the Kava ecosystem, where users mint USDX by collateralizing diversified assets (such as ETH, WBTC, ATOM, etc.) in a CDP (Collateralized Debt Position). The core risk points lie in the collateral ratio and liquidation threshold: a reasonable collateral ratio and liquidation penalties can ensure peg stability while affecting users' minting costs and leverage strategies. For users looking to hedge with USDX or perform cross-chain settlements, understanding the volatility of various collateral assets, interest rate models, and liquidation parameters is essential risk management homework before participation; for the ecosystem, USDX provides the foundation for on-chain payments and synthetic asset construction
