Carrot Swap has introduced xUSD, a stablecoin backed by USDC and USDT, on the Neo X platform. This stablecoin is collateralized by prominent stablecoins found on other blockchain networks, such as Base, BNB Chain, and Arbitrum. The cross-chain bridge used by Carrot Swap, which facilitates the transfer of assets between different blockchains, has already processed over 50,000 transactions on TestNet and MainNet, although xUSD has not been part of most of these transactions. The cross-chain bridge is based on ZetaChain’s mechanism and employs relayers to verify and validate transactions before transmitting them between chains.
Each xUSD token minted on Neo X is fully backed by the corresponding USDC or USDT on the original network. These stablecoins are locked in smart contracts on Base, BNB Chain, or Arbitrum until a Carrot Swap user redeems their xUSD for the underlying stablecoin. Users can choose to convert their xUSD to either USDT or USDC on any of the supported cross-chain networks during redemption.
In cases where the chosen stablecoin does not have sufficient liquidity on the supported network, Carrot Swap offers alternative options. For example, if a user wishes to redeem 100 xUSD for 100 USDT on the Base chain but there is only 80 USDT available, Carrot Swap allows the user to redeem 20 USDC on Base or 20 USDT or USDC on another blockchain to complete the redemption of 100 xUSD.
Carrot Swap is an automated market maker (AMM) based non-custodial exchange that initially launched on the NeoX TestNet in October 2023, following its recognition and award at the Neo APAC Hackathon. In August 2024, the DEX went live on MainNet, providing users with cross-chain bridging, swapping, and liquidity pool services. The Carrot Swap development team also released a token generator the following month.
For more information, please refer to the full xUSD launch announcement available at: https://x.com/carrot_fi/status/1836701589073170730