avUSDx
built on Avant’s avUSDx
avUSDx is the junior tranche of savUSD, functioning as a yield-bearing asset. While offering a higher share of the yield, avUSDx holders also take on a higher level of risk. In the event of protocol losses, avUSDx acts as an additional protection layer for the protocol, absorbing losses after the protocol's Reserve Fund has been utilized. The yield is generated via deploying market-neutral onchain strategies.
p-avUSDx enables investors to earn leveraged points while maintaining principal exposure. In return, p-avUSDx holders give up on the yield exposure.
How Does This Market Work?
Yield vs Points Trade Market
The yield and points of $avUSDx are exchanged between p-avUSDx and y-avUSDx holders while both of them maintain their principal exposure.
Correlated Asset:
Receipt Asset:
Overview
Technical Explanation
All the points generated by avUSDx are directed to p-avUSDx. In exchange, p-avUSDx holders give up on their yield exposure.
Market Expectation of Users
Users who want to earn speculative points exposure on top of $avUSDx instead of stablecoin yield returns can prefer this market.
The Source of Leveraged Points
avUSDx earns points exposure and p-avUSDx holders earn the points that y-avUSDx holders give up while also continuing to earn their own points.
Risks
Depeg: In case of savUSD depeg, users may incur losses on Stable Jack.
Counterparty Risk: Risks include duration risk and smart contract risk of Avant and any error in the onchain yield strategies.
Smart Contract Risk: Like every other DeFi protocol, Stable Jack is built on smart contracts, which carry inherent risks.Additional Info
Principal Protection: Users won’t lose their principal for yield exposure, so the asset is fully principal-protected.
Mint/Redeem Fees: There are no mint/redeem fees.
Incentives: There are no additional incentives.Disclosures
- Maturity Date: There is no maturity date on Stable Jack, so the market will be active as long as both teams are keen to continue this market.
- No Lock Up: There is no lockup period for the assets; users can easily mint/redeem the assets without delay.
avUSDxp-avUSDx
Market
Stake Jack