Change is the only constant in crypto.
Illustrating this fact is the fast-evolving DeFi scene and the rapid phase of development.
Xigua Finance, or Watermelon, riding on the high-quality public ledger IOST, is protocol resolving the major pain points plaguing traditional finance using the blockchain.
It borrows and blends different interesting aspects from MakerDAO—one of the world’s leading borrowing and lending permissionless dApp—and Uniswap.
Free Minting of XUSD Stablecoin
Users can borrow from the Xigua Finance dApp and receive loans in XUSD. Concurrently, they can trade in a low-fee, highly scalable environment offered by the Sequoia-incubated IOST blockchain.
Each XUSD in circulation is over-collateralized with IOST, while minting is free without interest.
Once loans are paid, users can withdraw their IOST collateral immediately for a 0.5 percent fee. Alternatively, they can wait for three days if they want to withdraw without paying any fee.
Whenever XUSD is minted, the IOST used as a backup is sent to the Liebi Pool, where it is staked, generating passive income.
Ninety percent of the income generated is redistributed to users who lock their XUSD to earn interest.
Plans for a Multichain IDO, XPlus
Besides the advantages offered by the Xigua Finance lending services, the platform boasts as the first to provide liquidity mining services when it first began in Oct 2020.
By running on the highly scalable, low-fees environment backed by some of the leading crypto funds, the protocol development team is confident that subsequent platforms, like the modern, interoperable XPlus IDO platform.
From the Aug 11 update, the team said the aim is to build a valuable bridge connecting high-quality projects with end-users in a transparent, fast, and sustainable IDO platform–the first in IOST.
It will be a protocol where users’ and projects’ interests will be shielded from the current problems in DeFi. For example, there is information asymmetry, security issues for users interacting with DeFi, exposing them to fraudulent projects, capital insufficiency, and promotion experience.
XPlus will first launch on the IOST blockchain, readily connecting its users with services available in the base layer’s ecosystem. However, being a multichain network and desirous of extracting all benefits that come with interoperability, the platform will later connect with Polkadot, the Binance Smart Chain (BSC), and HECO.
Central to the multichain IDO will be the XPLUS governance tokens. There will be 80 million as a total fixed supply.
To boost the demand for XPLUS tokens, the Xigua Finance team plans to use the proceeds from the DEX and lending platform together with rewards earned from XG Finance block-producing nodes to purchase and burn XPLUS tokens from the secondary market.
Thus far, the private sale is complete. However, XPLUS mining will begin five days after the launch of the platform. Trading of XPLUS will start once the Xigua Finance team launches the XSwap protocol.