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xBacked is a Decentralized Autonomous Organization (DAO) building decentralized stable assets for Algorand
xBacked is a DAO building a decentralized, permissionless stablecoin on Algorand, over collateralized by ASAs like Algo, BTC, and ETH.

How does it work?

xBacked ensures all xUSD in circulation is over collateralized via vaults. These vaults are collateralized debt positions (CDPs), and work similarly to MakerDAO, Liquity, and other collateralized stablecoins.
A core focus of the protocol is capital efficiency. We maintain low liquidation thresholds, with vaults having collateral ratios as low as 110% depending on the asset. Algorand is a very fast Layer 1 Blockchain, and we can guarantee that liquidations/debt being returned to vaults will never be held up by gas fees or network congesiton.
xBacked also leverages isolated risk markets in the architecture. Different vault types (e.g Algo/xUSD and BTC/xUSD) have different health factors, they are not combined. It means if one vault is affected by massive volatility, it will not affect other positions taken on xBacked and only affect a subset of xUSD in circulation.
Check out this blog post for more information about the protocol: https://medium.com/algopulse/xbacked-a-decentralized-stablecoin-for-algorand-69f3f296efd2
xBacked_Litepaper - Mar 2022.pdf
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