Strategic Advantages
Understanding the key advantages of Hylo’s dual-token system
Hylo’s innovative dual-token system provides comprehensive solutions to the challenges faced by both stablecoins and leverage products in the current DeFi ecosystem.
hyUSD
Scalability
hyUSD is made capital efficient by the issuance of xSOL. A relatively small amount of xSOL can support a large supply of hyUSD, allowing Hylo to scale beyond the limits of existing decentralized stablecoins.
Stability
xSOL acts as a volatility shield, absorbing price movements in the underlying collateral pool to maintain the peg on hyUSD.
Censorship Resistance
Hylo is entirely independent from banks and other custodians, storing collateral assets on chain in transparent and 24/7 auditable vaults.
Native Yield
Since hyUSD is backed by Solana LSTs, it can sustain and distribute natural yield in any market condition.
Deep Liquidity
hyUSD can be redeemed for its net asset value at any time without incurring slippage, regardless of the transaction size. Unlike other stablecoins that can face liquidity shortages during high redemption periods, hyUSD doesn’t face this problem since 100% of its backing assets are liquid and accessible at any time.
| Centralized | CDP Backed | Delta Neutral | hyUSD | |
|---|---|---|---|---|
| Scalability | ✓ | ✗ | ✓ | ✓ |
| Stability | ✓ | ✓ | ✓ | ✓ |
| Transparency | ✗ | ✓ | ✗ | ✓ |
| Native Yield | ✗ | ✗ | ✓ | ✓ |
| Decentralization | ✗ | ✓ | ✗ | ✓ |
xSOL
No Funding Rate
Unlike a perpetual contract, xSOL does not incur an ongoing funding rate. This makes xSOL an ideal long-term hold for investors seeking leveraged exposure.
No Liquidation Risk
xSOL is held in the user’s wallet and cannot be forcibly liquidated. Investors can hold their position through market turbulence without fear of losing their trade.
Variable Leverage
xSOL’s leverage adjusts dynamically with market conditions, offering users a passive way to maintain leveraged exposure with reduced risk.
Passive Management
Users can hold xSOL without the need for constant monitoring or advanced trading strategies of health ratios, reducing stress and complexity.
No Slippage
xSOL can be minted or redeemed directly through the protocol without incurring any slippage, regardless of the transaction size.