The demand for borrowing XAI has been on the rise. Here are a few facts about XAI:.

13 Dec 2022, 17:31

The demand for borrowing XAI has been on the rise. Here are a few facts about XAI: 1- XAI is an overcollateralized stablecoin that is softly pegged to USD. 2- XAI is backed today by USDC and ETH only. 3- XAI minting is fully controlled by SiloDAO. 4- 1XAI always equals 1USD in the silo protocol and therefore XAI price on the market doesn't impact XAI loans. For example, if you have borrowed 1,000 XAI, and XAI trades at $1.03, your loan is still valued at $1,000. 5- You can arbitrage XAI in two ways: - When the XAI market price trades above $1, you can borrow new XAI into existence and sell it on the market. - When the XAI market price is below $1, you can purchase XAI at a discount and repay your XAI loan. 6- XAI's interest rate model is uniform across all silos (except XAI-ETH silo). Here is how much borrow APY you can expect to pay at different utilization levels: Utilization Floor Borrow APY 0% 0.00% 10% 0.50% 20% 1.00% 30% 1.50% 40% 2.00% 50% 2.50% 60% 3.00% 70% 3.50% 80% 4.00% 90% 4.50% 100% 80.00% Read more: