In the ever-shifting world of cryptocurrencies, stability is a prized rarity. Enter FXD, powered by Fathom protocol, emerging as the epitome of trust and reliability. Unlike its predecessors like Tether and TrueUSD, FXD operates in a league of its own, ensuring an unwavering 1:1 soft peg to the USD. Curious about this magic? Let’s delve in!
Discover the FXD Advantage: Liberating You from Custodial Constraints
In a market that dances to the tune of volatility, FXD fearlessly stands its ground. Traditional stablecoins relied on custodial entities to hold real USD, risking refusal of redemption due to regulatory woes. This went against the core ethos of crypto: permissionless, trustless transactions. FXD eradicates this risk by leveraging the might of XDC, the chosen cryptocurrency, as its backbone, eliminating the need for dubious third-party custodians.
How Does FXD Work? The Elegant Mechanism Unveiled
Imagine this: You deposit XDC into the Fathom smart contract, creating a Collateralized Debt Position (CDP). For example, depositing 1000 XDC (equivalent to $100) empowers you to withdraw up to 40 FXD (considering a 150% collateralization rate). But here's the twist: if the value of XDC dips below $100, your CDP faces closure. To prevent this, maintaining a balance between deposited XDC and withdrawn FXD is key. Extra XDC deposits or reduced FXD withdrawals act as shields, ensuring adequate capital against borrowed funds.
Embark on the FXD Journey: Simple Moves, Profound Outcomes
Let’s simplify further:
Smooth Sailing: Secure a 300% collateralization by taking out 50 XDC. As long as XDC stays above $75, your position remains secure. After a year, repaying the 50 XDC releases your locked XDC, with a nominal fee (3.5% as of October 2023) to maintain stability.
Narrow Escape: Opt for 100 XDC at a 150% collateralization rate; you face risk when XDC drops to $100. Your CDP is under-collateralized by $50, leading to third-party liquidation, albeit with penalties.
Seize Opportunities: Take out 75 XDC, enjoying 200% collateralization. A bullish XDC market raises its value to $300, bolstering your CDP to a robust 400%. Capitalize on this optimism by withdrawing an extra 100 FXD, still maintaining a CDP ratio of 175%.
Embrace FXD: Where Stability Meets Innovation
FXD not only ensures stability but also champions a vision of decentralized, trustless transactions. With the Fathom protocol at its core, this innovative stablecoin heralds a new era of financial freedom. Bid farewell to volatility-induced stress and embrace the future of stable, secure transactions with FXD. Your financial journey just found its steadfast companion.
Investing in Real World Assets (RWA) Made Effortless
FXD and Fathom Fxd, its pioneering platform, offer a gateway to a world of Real World Assets (RWA) investment. Think digital gold, US Treasury bonds, and more—all seamlessly tokenized on the blockchain. Here's what you can expect:
Tokenization: RWA such as digital gold and US Treasury bonds are transformed into digital tokens, enabling easy and secure transactions on the blockchain.
Liquidity Provision: Contribute to liquidity pools for these tokenized assets on Fathom Fxd's decentralized exchanges. Your participation not only bolsters the market but also earns you trading fees.
Yield Farming: Dive into yield farming opportunities, staking your tokenized RWAs or liquidity pool tokens. Reap additional rewards in the form of Fathom Fxd's native cryptocurrency and other tokens.
Governance Participation: Holders of FXD tokens get a say in Fathom Fxd's governance, shaping its trajectory and future developments.
Why Choose Fathom Fxd?
Global Access: Fathom Fxd opens doors to global RWA investments, demolishing geographical barriers.
Efficiency Redefined: Blockchain technology streamlines financial transactions, making Fathom Fxd's platform faster and more secure than traditional systems.
Diversification Made Easy: Explore a diversified investment portfolio with digital gold, government securities, and potentially other assets like real estate—all within your grasp.
Crystal-Clear Transactions: XDC Network Blockchain ensures transparency and immutability, giving you an unobstructed view of your investments and the platform's operations.
Don't just follow the future; become a part of it with Fathom Fxd. Embrace stability, innovation, and financial freedom—all in one groundbreaking platform. Your journey to secure, transparent, and diversified investments starts here. Dive into the FXD experience today!