The Role of avUSDx

Unlike savUSD, avUSDx is designed to protect avUSD from market and protocol risks. In the event that the strategy incurs a loss, avUSDx, after the reserve fund, will serve as a backstop. In exchange, avUSDx users receive a higher portion of the yield generated by the savUSD strategy, among other benefits.

In summary, avUSDx:

  • Receives boosted savUSD yield.

  • Backstops losses that the reserve fund cannot cover.

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