USDX vaults
- This stablecoin does not have a price feed available at the moment and we are unable to display peg/depeg rates.
About Kava USDX
Kava USDX is a legacy Kava Mint CDP token that has traded materially below $1 since its 2022 depeg. It is not a cash-equivalent stablecoin.
USDX was the native decentralised dollar token of the Kava blockchain, minted through Kava Mint collateralised debt positions (CDPs). The token lost its dollar peg during the May 2022 market disruption and has not subsequently returned to a reliable $1 market price.
Mechanism
When a user deposits collateral on Kava's CDP platform, they receive newly minted USDX up to two-thirds of the collateral value. If a position's collateral ratio falls below the liquidation threshold, the position is automatically liquidated. KAVA token serves as the protocol's reserve currency of last resort: if the system becomes undercollateralised as a whole, new KAVA is minted and used to buy back USDX until the system is restored to health.
Status
Kava has shifted its product focus away from USDX. Repaying USDX to close a CDP may still release its collateral, but that is not a general one-to-one cash redemption route. Secondary-market liquidity and the market price can differ materially from $1, so USDX must not be treated as a dollar denomination for an unrelated vault that merely shares its ticker.
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