[Gauntlet] Recommendations for sUSDX on Arbitrum USDC and USDT Comet
Simple Summary
Should the community choose to onboard sUSDX on the Compound USDC and USDT Comets on Arbitrum, we recommend the following initial parameter recommendations:
Risk Parameters
| Asset | Collateral Factor (CF) | Liquidation Factor (LF) | Liquidation Penalty (LP) | Supply Cap |
|---|---|---|---|---|
| sUSDX | 86% | 91% | 5% | 1,250,000 |
- Collateral Factor, Liquidation Factor & Penalty: sUSDx and sUSDf have very similar token behaviour so using similar recs provided for sUSDf on Mainnet to sUSDX on Arbitrum.
- Note: USDf depegged briefly several weeks ago but regained its peg. USDX has similar token risks as USDf.
- Supply Cap: 1.25M sUSDX on each Comet, to keep maximum liquidation size within acceptable slippage tolerances.
Rationale
- Token Overview:
- USDX: A crypto-native synthetic dollar stablecoin from Stables Labs, minted when users deposit approved crypto collateral (stablecoins) into delta-neutral vaults that hedge market exposure via offsetting derivative positions, maintaining a $1 peg without fiat reserves.
- sUSDX: The yield-bearing version of USDX. Users deposit USDX into an ERC-4626 vault and receive sUSDX shares representing their claim on the vault’s USDX holdings and accrued hedging revenues.
Redemption Process
| Token | Action | Receives | Cooldown |
|---|---|---|---|
| USDX | Burn “Redeem” | Underlying collateral (USDC/USDT) | None |
| sUSDX | Unstake → Claim | USDX → underlying collateral (USDC/USDT) | 1 day |
- USDX:
- Connect wallet at app.usdx.money.
- Enter the amount of USDX to burn → Receive USDC/USDT immediately on-chain (no cooldown).
- sUSDX:
- In the same app, go to “Unstake” → Enter sUSDX amount → Confirm → Wait 24 hours → Go to “Claim” → Claim USDX → Burn USDX as above for immediate collateral.
DEX Liquidity
| Asset | Pool Type | Pool Name | Pool TVL (USD) | 24 h Volume (USD) | URL |
|---|---|---|---|---|---|
| sUSDX | Camelot V3 | sUSDX / USDX 0.004% | 8,430,000 | 22,466 | GeckoTerminal |
| sUSDX | Balancer | sUSDX / sUSDX/USDX / USDX 0.04% | 1,390.000 | 0 | GeckoTerminal |
Total DEX liquidity for USDX is approximately $9.8 M.
Insurance Fund Overview
-
Mechanism:
The Usdx.money insurance fund is an on-chain reserve designated to cover any negative funding or basis-spread shortfalls in the delta-hedging strategy. If funding rates turn deeply negative for a sustained period, the insurance fund “steps in” so that neither USDX holders nor sUSDX stakers lose principal mentioned here.
-
Public Visibility:
There is no dedicated “Insurance Fund” widget in the dashboard; its capacity is implicitly represented by the surplus collateral held by the protocol.
-
Available Buffer (Implicit Fund Size):
As of July 20, 2025, the USDX Dashboard reports:
- Total Collateral: $679.24M
- USDX Supply: $675.36M
- Implicit Insurance Buffer: $679.24M − $675.36M ≈ $3.88M
-
sUSDX Staking Protection:
The same buffer also backs the sUSDX vault. If the protocol yields available for sUSDX users are zero or negative, the fund absorbs the loss so that the USDX value of sUSDX never falls below 1:1.
Oracles
We recommend pegging USDX to 1, and since sUSDX is an ERC 4626 vault, we recommend using ConvertToAssets function on the contract.
Next Steps
We welcome community feedback.