October 10, 2023

We’re Proud to Announce a New Special Asset Pair Function on UX

Our most recent update introduces the Special Asset Pair Function, a one-of-a-kind feature that allows users to increase their borrowing capacity and maximize their capital efficiency. Read more about it here!
By UX Marketing

In building up the UX chain, it has always been our goal to maximize capital efficiency on our platform. Any updates we have made to our app in service of this goal have been based on the valuable feedback we have received from our community and our own innovation and research into lending markets in the blockchain space.

Our most recent upcoming update, the Special Asset Pair function, is the direct result of this effort, and a great new way for users to see the benefits of leveraging specific asset pairs. Let's dive into its details.

Understanding the UX Chain's Special Asset Pair Function

With this chain update, our leverage module is now able to define pairs of assets, which we've found to be beneficial when one is used as collateral to borrow the other.

We refer to these as Special Asset Pairs, and together, they have a determined Special Collateral Weight which contributes to their combined leverage potential.

On our app, two assets will be highlighted as a special pair. If any user provides collateral of one to borrow the other, then the special asset pair function takes effect. 

It means that for these specific assets, users will enjoy a special collateral weight and special liquidation threshold when borrowing one while having the other provided as collateral. 

Here’s an example:

  • Lets start with 4 assets, A,B,C,D all with a predetermined combined collateral weight of 0.75.
  • Our leverage module defines assets A and B as a special asset pair, with a combined special collateral weight of 0.9.
  • Any user that supplies asset A as collateral and wishes to borrow asset B will enjoy the benefits of our special asset pair function, specifically the higher collateral weight, which translates to an increased borrowing capacity.
  • The special asset pair function resolves to allow less of asset A placed as collateral to enable the borrowing of asset B, which simply means more borrowing potential!

The immediate benefit of a special collateral weight is that it increases users’ borrowing capacity. Being able to borrow more allows users to maximize their capital efficiency.

This Special Asset Pair Function is a one of a kind feature, currently exclusive to UX, and it  introduces a new avenue for users to benefit from advantageous positions to maximize yield.

In summary…

It is only in engaging in the supply of and borrowing of defined special asset pairs in tandem that users experience a comparatively higher yield than if the assets were randomly selected.

With this new function in place, the UX chain adds another strategy point for users to maximize their yield potential. Stay tuned for the asset pairs we plan to list, and tell us your experience when you finally try out our Special Asset Pair Function.

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Best regards,

The UX Team.