Carrot Swap has launched its stablecoin, xUSD, on Neo X, which is collateralized by prominent stablecoins on other blockchain networks. xUSD is backed by USDC and USDT that persist on Base, BNB Chain, and Arbitrum.
To date, Carrot Swap purports that the cross-chain bridge has successfully processed more than 50,000 transactions on TestNet and MainNet, most of which have not included the xUSD stablecoin. The cross-chain bridge is a fork of ZetaChain’s mechanism that leverages relayers that independently validate transactions and then require other relayers to confirm the validity before transmitting messages between chains.
Each token minted on Neo X (i.e., xUSD) is 1:1 collateralized by the underlying asset (i.e., USDC or USDT) on the originating network, which is locked in a smart contract on Base, BNB Chain, or Arbitrum until a Carrot Swap user redeems the xUSD for the underlying stablecoin. When redeeming xUSD, the user can convert to USDT or USDC on one of the three supported cross-chain networks.
If the supported network doesn’t have enough liquidity of the chosen stablecoin, it will complete the redemption using the other supported stablecoin on the network, or the same stablecoin on another blockchain. For example, if a user seeks to redeem 100 xUSD for 100 USDT on Base chain, but there’s only 80 USDT in liquidity on Base, then Carrot Swap will provide the user with the option to redeem for 20 USDC on Base, or for 20 in USDT or USDC on another chain, to fulfill the 100 xUSD redemption.
About Carrot Swap
Carrot Swap is an AMM-based non-custodial exchange that launched on the NeoX TestNet in Oct. 2023, following its AWS award at the Neo APAC Hackathon. The DEX went live on MainNet in Aug. 2024, offering users cross-chain bridging, swapping, and liquidity pool provision functionality. The following month, the development team released a token generator.
The full xUSD launch announcement can be found at the link below:
https://x.com/carrot_fi/status/1836701589073170730
