FAQ
Quick answers to FAQs on the xBacked protocol
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Quick answers to FAQs on the xBacked protocol
Last updated
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Supply fees can vary per vault. Presently, all vaults have an annual fee of 3%
These supply fees are fixed, and will not change. To change supply fees, vaults must be deprecated & redeployed with a new fee rate. Read more about deprecation.
xBacked is multi-collateral. Currently, a range of assets are available including ALGO, goBTC, goETH, GOLD$ and more. See a full list including vault parameters for each . In the further future, the team and community will assess other options.
The following factors are considered when selecting new collateral types for xBacked
On Chain liquidity; will liquidations cause a cascading crash if there's too much debt for this new collateral type? Will liquidators be able to sell liquidated collateral at a favorable price? .
Bridge risk; if the asset is bridged, what is the risk of accepting it? How much of this asset should be backing xUSD? .
Community demand; will our users actually find this introduction valuable?
Price feeds; can we get or create reliable price feeds for this asset?
Minting xUSD
0%, annual supply fee
Liquidations
1%
Redemptions
0.5%
$100 xUsd, but could vary per vault and change over time.
Yes, we are working towards a fully decentralized governance model.
xBacked does not natively allow users to stake Algos for governance. Instead, we have integrated Liquid Staking assets like gAlgo from and mAlgo from . We are focused on being the best stablecoin, not liquid staking. Leveraging composability, we can still allow users to participate in governance & xBacked.
This varies per vault but could be as low as 110% depending on the collateral type.