usdx.money USDX (USDX)

Data Error

Overview

usdx.money USDX is a digital token created by Stables Labs. It was designed to track the value of one U.S. dollar through a mix of crypto assets and offsetting trades. Stables Labs calls it a synthetic dollar: its backing model uses positions in crypto markets rather than a reserve made up solely of dollars in a bank account. (docs.usdx.money)

The project has two main tokens. USDX is the token intended for transfers, swaps, and use in decentralized finance, or DeFi. sUSDX represents USDX deposited into the project’s staking contract. Stables Labs designed sUSDX to receive a share of revenue from the strategy used to back USDX. Understanding the difference between these tokens is central to understanding the project. (docs.usdx.money)

History & Team

Origins and early backing

Stables Labs developed USDX as part of its usdx.money stablecoin project. Flex Yang is identified as the founder of Stables Labs. The project was active in 2024, when it presented USDX as its first stablecoin product and set out plans for DeFi liquidity, payment infrastructure, and further integrations. (aicoin.com)

In December 2024, usdx.money announced a $45 million financing round involving NGC, BAI Capital, Generative Ventures, and UOB Venture Management. The announcement also named Dragonfly Capital and Jeneration Capital as earlier investors. Funding helped establish the project, but the token’s dollar target still depended on how its backing and redemption system worked. (thedefiant.io)

A defining event

USDX lost its intended dollar peg in November 2025. DeFi projects that accepted USDX or sUSDX as collateral responded to the disruption, showing how a stablecoin’s use across other applications can link their fortunes. The event is an important part of USDX’s history because the token was built around a stable-value goal. (theblock.co)

Technology & How It Works

Balancing assets with hedges

USDX’s original design uses a delta-neutral strategy. In simple terms, the protocol aims to hold a crypto asset while taking an opposing position that offsets changes in that asset’s value. For example, a rise in the value of bitcoin held as backing could be balanced by a loss on a short bitcoin derivatives position. If bitcoin falls, the short position is meant to gain value as the bitcoin holding loses value. Stables Labs describes using this approach across more than one crypto asset. (docs.usdx.money)

The project’s documentation describes a user depositing supported stablecoins, such as USDT or USDC, to create USDX. The backing assets are then used in a strategy involving spot assets, derivatives exchanges, and an off-exchange settlement provider. The aim is to keep the combined position close to a fixed dollar value while capturing income from differences between spot and derivatives markets. (docs.usdx.money)

That design depends on several parts working together: the value of backing assets, the size of the offsetting trades, access to trading venues, and the movement of assets between providers. The protocol also uses RedStone price feeds as a cross-check during minting and redemption. Its documentation lists smart-contract audits by BlockSec, SlowMist, and Salus. (docs.usdx.money)

Minting and redemption

Direct minting and redemption are separate from buying or selling USDX in a trading pool. Stables Labs’ documentation says approved institutions and other eligible entities must complete identity or business checks and be placed on an allowlist before using the protocol’s direct minting and redemption functions. Other users can acquire USDX through external liquidity pools. The documentation describes a seven-day process for eligible addresses redeeming USDX into USDT, while pool swaps provide a separate route for conversion. (docs.usdx.money)

Authorized traders can help connect the two routes. When the value offered in an external pool differs from the protocol’s mint or redemption terms, they may mint, redeem, or swap tokens to take advantage of that difference. This activity was designed to help keep USDX near its dollar target. (docs.usdx.money)

Tokenomics & Utility

USDX’s economic model begins with deposits and issuance. Eligible participants deposit supported assets to mint tokens, while redemption removes tokens through the protocol’s approved process. Supply can therefore change as minting and redemption occur. USDX is used mainly as a dollar-targeted asset for transfers and DeFi activity; sUSDX is the separate token used to represent a staked position. (docs.usdx.money)

When a holder stakes USDX, a smart contract accepts the deposit and issues sUSDX. Each sUSDX token represents a share of the USDX held in that contract. As the protocol transfers revenue into the staking contract, the amount of USDX represented by each sUSDX can grow. The holder’s token count does not need to increase for that change to occur. Stables Labs says this revenue comes chiefly from funding payments and differences between spot and derivatives markets. Those amounts can vary, so staking returns are tied to the strategy’s results. (docs.usdx.money)

The staking contract follows the ERC-4626 vault standard, which gives other applications a common way to work with it. Its design includes a cooldown before unstaked USDX can be withdrawn and a system that releases reward payments gradually into the vault. (docs.usdx.money)

Ecosystem & Use Cases

Moving and using a synthetic dollar

USDX was built for people and applications that need a dollar-denominated token on a blockchain. It can be sent between compatible wallets and swapped in decentralized exchange pools. In a DeFi application, it can also serve as one side of a trading pair or be deposited into a liquidity pool. Those uses connect the token to on-chain services without requiring every holder to operate the project’s hedging strategy directly. (docs.usdx.money)

Stables Labs also pursued integrations in which USDX or sUSDX could be used as collateral. Collateral is an asset deposited to support a loan or another financial position. The November 2025 peg event showed why collateral use matters beyond the stablecoin itself: a change in USDX’s value also affected applications that had accepted it. (thedefiant.io)

Staking and participation

Holders can deposit USDX into the staking contract to receive sUSDX. The project also described rewards for providing liquidity and locking liquidity-pool tokens. These are different activities: staking creates a claim on assets in the staking vault, while providing liquidity places tokens in a pool that others use for swaps. (docs.usdx.money)

Advantages & Challenges

USDX’s main design advantage is its attempt to create a dollar-targeted token using crypto-market positions rather than relying on a conventional bank reserve for the core strategy. The design links an on-chain asset to a hedged portfolio, and sUSDX offers a way for holders to take part in revenue generated by that portfolio. Common token and vault standards also make the assets easier for compatible wallets and DeFi applications to handle. (docs.usdx.money)

The same design creates challenges. A hedge must remain matched to the assets it is meant to offset, and the strategy relies on outside trading and settlement providers. Income from funding payments changes with market conditions. Direct redemption is limited to approved participants, so most holders depend on external pools when they want to swap. Above all, the November 2025 loss of the dollar peg demonstrated that the intended backing strategy and a stable market value are different things. (docs.usdx.money)

Where to Buy & Wallets

USDX is available through decentralized exchange pools, including PancakeSwap on BNB Smart Chain. Stables Labs’ documentation describes acquiring it through external pools rather than applying for direct minting rights. The protocol’s published USDX contract address is 0xf3527ef8dE265eAa3716FB312c12847bFBA66Cef; the network and contract address together identify the token used in a particular transaction. (forum.pancakeswap.finance)

USDX can be held in an EVM-compatible wallet such as MetaMask on a supported network. MetaMask allows holders to display a token by importing its contract address when it does not appear automatically. Transfers and swaps also require the network’s native asset to pay the blockchain transaction fee—for example, BNB for a transaction on BNB Smart Chain. (support.metamask.io)

Regulatory & Compliance

Stables Labs separates open-market access from direct issuance. Its documentation says entities seeking direct minting and redemption must come from eligible jurisdictions, pass identity or business screening, and receive approval. The project’s terms also address sanctions and the laws that apply where a person uses its products. These requirements concern access to the protocol’s services; a token transfer between wallets is a different activity from being approved to mint or redeem with the project. (docs.usdx.money)

Stablecoin rules differ by jurisdiction. In the United States, the GENIUS Act established a federal framework for qualifying payment stablecoins, including reserve and disclosure requirements. In the European Union, MiCA sets rules for tokens that refer to an official currency, including authorization requirements for issuers of e-money tokens. How a synthetic product such as USDX is treated depends on its legal structure and the activity taking place in each jurisdiction. (whitehouse.gov)

USDX’s Shariah status is closely tied to its backing strategy. That strategy uses short derivatives positions and receives funding-related payments. The International Islamic Fiqh Academy has found most conventional futures arrangements impermissible under its Shariah standards, while recognizing that hedging methods must be judged by how they are structured. Under those standards, USDX’s documented derivatives-based model does not fit a straightforward Shariah-compliant approach. (docs.usdx.money)

Future Outlook

USDX’s future role depends on more than the idea behind a synthetic dollar. The practical questions are whether its backing can be clearly accounted for, whether minting and redemption function as described, and whether other applications continue to support the token. Its 2025 peg event makes those questions especially important when assessing how the original design works in practice. (docs.usdx.money)

The technology remains a useful example of how crypto projects have tried to combine stable-value tokens, derivatives hedging, and on-chain staking. The outcome for USDX itself will be shaped by the operation of those systems and by the terms on which people and applications can use them.

Summary

Stables Labs created USDX as a synthetic, dollar-targeted token backed by a crypto-market hedging strategy. Its companion token, sUSDX, represents staked USDX and was designed to share in protocol revenue. USDX illustrates both the uses of synthetic assets in DeFi and the difficulty of maintaining a stable dollar value through a system that spans smart contracts, trading venues, and approved redemption channels. (docs.usdx.money)