The June 4th Ecosystem Call was hosted by Jonathan (Flare Community) and Hugo, with guests Jakob Kronbichler, CEO and Co-founder of Clearpool, and Edward Zhao, Head of Markets at Hex Trust. They explained how USDX as the first native stablecoin on Flare, and the Clearpool Yield Vault function in tandem to support the FAssets system and drive explosive growth in the Flare DeFi ecosystem.

Full recording:  https://x.com/i/spaces/1ynJOyBzVLWKR

Introducing Hex Trust and Clearpool

Hex Trust and Clearpool are two key players in the DeFi space, leveraging their expertise in different areas to bridge the gap between traditional finance and DeFi. Hex Trust, a licensed custodian, provides secure storage and management for digital assets. Clearpool, a leading DeFi credit marketplace, connects borrowers and lenders in a permissionless environment. Their recent collaboration focuses on USDX, a new stablecoin on the Flare network, aiming to bring stability and real-world yield-generating opportunities to the Flare community.

USDX:

• First native stablecoin on Flare, developed by HT Digital Assets, Hex Trust’s tokenization ecosystem.
• Backed 1:1 by USD with a transparent dashboard for verification.
• Offers a stable value alternative to other DeFi assets.
• Enables holders to earn a real-world yield in a dedicated Clearpool T-Pool.

T-Pool:

• A vault on Clearpool that allows users to stake USDX and earn yield.
• The yield comes from short-term US treasury bills, considered a very low-risk investment.
• Provides an attractive “risk-free rate plus an extra % in FLR token rewards” according to Jacob from Clearpool. This makes it a potentially good option for users seeking stable returns with minimal risk.
• Those staking USDX will receive cUSDX in return, which can be used as collateral across DeFi protocols on Flare.

USDX and the T-pool were presented as a powerful combination for the Flare ecosystem. USDX provides a secure and stable foundation, while the T-Pool allows users to earn yields on their holdings.

Security & acquiring / redeeming USDX

USDX prioritizes stability and trust through several measures. First, it maintains a strict 1:1 reserve ratio, meaning there are always enough highly liquid assets, like USD or short-term US Treasuries, held with top-tier custodians to cover all outstanding USDX. These reserves are further verifiable through a public transparency dashboard, fostering trust by assuring users of USDX’s stability.

Acquiring and redeeming USDX directly is currently limited for compliance reasons. However, the Hex team is actively working on launching liquidity pools on decentralized exchanges. These pools will function like marketplaces where users can swap other cryptocurrencies for USDX, significantly improving accessibility for the average crypto user.

Real-world assets (RWAs) and collaborations

The collaboration between Flare, HexTrust, and Clearpool offers a promising glimpse into the future of RWAs.

Clearpool’s proven track record in lending, with over $530 million in loans originated, positions them well for the future. Their partnership with a licensed custodian like HexTrust strengthens their ability to securely manage RWAs, a crucial requirement for RWA tokenization. This collaboration could pave the way for trustless lending of various assets within Flare, significantly expanding its DeFi capabilities.

On top of that, Flare integrates diverse data from web2 and web3, enabling secure, decentralized applications. The success of the T-Pool, already boasting an initial TVL of $11 million, hints at the potential for further collaboration on RWAs.

Visit the T-Pool: https://clearpool.finance/tpool

Why is USDX exciting for FAssets?

“Stablecoins are fundamental for the development of a vibrant DeFi ecosystem. The collaboration between USDX and Clearpool on Flare delivers a 1:1 backed stable asset with immediate access to real-world yield,” said Hugo.

He further elaborates on the key benefit of USDX for users participating in the FAssets system. Staking USDX on Clearpool returns cUSDX, which can be used as collateral in Flare Labs’ FAsset system, supporting the use of non-smart contract assets such as BTC and DOGE in DeFi on Flare.

FlareFi Summer

The collaboration between USDX and Clearpool’s T-Pool on Flare has the potential to be a major catalyst for a FlareFi Summer. Here’s why:

• Stable foundation: USDX provides a reliable and trustworthy foundation for DeFi applications within the Flare ecosystem. Users seeking stable assets for lending, borrowing, and trading can participate with greater confidence, fostering a vibrant DeFi marketplace.
• Yield opportunities with lower risk: The T-Pool allows users to earn yields on their USDX holdings. This incentivizes users, especially those new to DeFi or risk-averse, to participate by offering returns on their stablecoin assets, creating a more accessible entry point.
• With the launch of USDX and T-Pool, lending & borrowing protocols, DEXes, and perpetuals are already exploring integration. This buzz could spark a busy summer of DeFi activity on Flare.

Thanks for joining us on the call. We look forward to seeing you at the next one.