xBacked

Heard of xBacked?

They are a DAO building a stablecoin (xUSD) on the Algorand network. The Algorand network was chosen for its speed, to ensure that debt & liquidations are not delayed.

You have to deposit ASA (Algorand Standard Assets) into a vault in order to withdraw xUSD. The stability of the xUSD is attained by a minimal over-collateralized ratio of 110%. For example: If you deposit 100 ALGO and mint 50 xUSD your collateral-ratio would be 200%

The price of ALGO may go up or down which would affect your position and be a reason for not minting right up to the 110% mark.

xBacked utilizes multiple different vaults that are not linked together, for example one vault of ALGO/xUSD and another of goETH/xUSD. If the price of ALGO was particularly volatile this would only affect the xUSD from those vaults and not all of the xUSD in circulation.