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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