Upcoming Layer 1 blockchain Nexus has unveiled its native rewards stablecoin, USDx.
USDx will function the Nexus ecosystem’s native greenback and can implement a International Yield Distribution System (GYDS), underneath which purposes that maintain USDx earn a share of protocol income based mostly on their customers’ USDx holdings.
The design is meant to supply yield as a income stream for the ecosystem’s utility layer, incentivizing every underlying protocol to combine USDx.
By USDx, Nexus goals to unify its ecosystem round a shared foreign money layer that aligns its purposes and incentivizes them to drive conversions of USDT and USDC to USDx.
Nexus focuses on “verifiable finance,” the place each layer and transaction within the ecosystem will be independently verified through cryptographic proofs with out sacrificing privateness. The design is constructed on Nexus’ zero-knowledge digital machine (zkVM), enabling verifiability with out disclosing particular person customers’ delicate info.
Nexus raised $27.2 million over two funding rounds between December 2022 and June 2024, with a seed spherical led by Dragonfly, and a Sequence A led by Pantera and Lightspeed.
CEO Daniel Marin advised The Defiant that USDx is totally backed by U.S. Treasuries, however didn’t disclose a precise formulation for the way the yield will probably be distributed. “Functions and customers that obtain USDX-generated yield will accomplish that in accordance with their contributions to the protocol, corresponding to TVL and quantity, and as decided from time-to-time by the protocol’s financial coverage,” Marin stated.
Marin didn’t instantly clarify why the yield is distributed to the applying layer moderately than to customers who alternate their legacy stablecoins for USDx.
“USDx offers us the chance to create a brand new form of financial design that enables Nexus to assist decentralized governance, onchain actions, in addition to yield streaming, all with the aim of constructing a system that aligns incentives for the protocol, builders, and customers,” he stated.
