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xAssets

xAssets is a decentralized application (dApp) within the CrossFi ecosystem, designed for issuing and exchanging synthetic assets, as well as providing convenient access to decentralized trading and risk management. With xAssets, users can easily mint the overcollateralized stablecoin XUSD, trade synthetic analogs of traditional financial instruments, and manage their assets without KYC requirements.

For a detailed technical overview of all components, please refer to the full xAssets documentation.

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xASSETS

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Key Features of xAssets​

Mint (issuing XUSD against collateral)​

The Mint function allows users to lock up crypto assets (e.g., wXFI, USDT, WETH, WBTC, etc.) and issue XUSD — a stablecoin used for trading synthetic assets or performing other operations within the ecosystem.

How it works:

  • The user selects and deposits assets into the Collateral Pool
  • A smart contract calculates the allowable amount of XUSD to mint based on the collateralization ratio
  • The user receives XUSD, which can now be used for trading or swapping

Swap (exchanging synthetic assets)​

With the Swap function, users can exchange XUSD for various synthetic assets (e.g., xAAPL, xXAU, and others) that closely follow real-world asset prices via oracle data. This mechanism enables access to global markets directly from the CrossFi blockchain.

How it works:

  • The user selects XUSD and the desired synthetic asset for the swap
  • The protocol burns a portion of the XUSD (reducing system debt) and mints the chosen synthetic token based on oracle-provided pricing
  • The synthetic asset is sent directly to the user's wallet

Trade (in development)​

The Trade function enables users to speculate on price movements using virtual leverage, without needing to borrow real funds. All profits and losses are reflected in the collective debt pool.

How it will work:

  • The user opens a position using synthetic tokens
  • Profits and losses are shared across all minters in the system through the collective Debt Pool
  • No need for 1-to-1 margin agreements, which keeps the system simple and efficient

Escrow (in development)​

The Escrow function is intended for temporarily locking assets to facilitate complex financial operations such as options, futures, and other contract-based agreements requiring asset guarantee.

How it will work:

  • The user locks assets into a smart contract with a specified term or condition
  • Assets remain frozen until the condition is met or the lock period ends
  • The smart contract ensures fair execution for all parties involved in the deal

Collateral & Debt Mechanisms​

Collateral Pool​

The Collateral Pool is the aggregate of all user-deposited assets used as backing for minted XUSD. It serves as the backbone for ensuring the stability of the stablecoin and system operations.

Debt Pool​

The Debt Pool is the total collective debt generated by all users who mint XUSD. It fluctuates based on traders' profits and losses. As traders earn profits, the overall debt increases; losses reduce it. This ensures fair redistribution of risk and responsibility across all participants.

Risk Controls & System Stability​

Health Factor (HF)​

The Health Factor indicates the safety level of a user's position. If the HF drops below 1, the position becomes subject to liquidation.

Formula:

HealthFactor=(CollateralValue/DebtValue)∗LiquidationRatioHealth Factor = (CollateralValue / DebtValue) * LiquidationRatio

Users are encouraged to monitor their HF to avoid liquidations and ensure collateral safety.

Burn Fee​

Each Swap operation includes a burn mechanism where a portion of the involved tokens is permanently destroyed. This helps reduce overall debt and stabilize XUSD by limiting synthetic supply growth.

Benefits and Business Impact​

xAssets offers decentralized access to global financial markets along with fast, low-cost transactions powered by the CrossFi blockchain. The platform's design ensures that users maintain complete control over their assets through smart contract operations, making the processes of minting, swapping, and trading both intuitive and secure.

From a business perspective, xAssets enhances the utility of the native token XFI, increases liquidity by boosting Total Value Locked (TVL), and creates a revenue stream through swap and trading fees. These factors not only strengthen the CrossFi ecosystem but also contribute to sustained growth and innovation.