# xUSD Token

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### Overview

xUSD is a fully collateralized, yield-bearing stablecoin that represents the US Dollar and is pegged 1:1 to USDC. Designed for DeFi users, xUSD seamlessly combines stability with passive income generation by distributing real-time yield directly to holders.

Each xUSD token is backed by highly secure and liquid assets, ensuring safety and reliability. Rewards are automatically accrued by increasing the number of tokens in the holder’s wallet, providing a consistent and transparent way to earn.

Built on a diversified pool of low-risk, high-quality financial instruments, xUSD offers a competitive yield while maintaining dollar stability. Regardless of the blockchain users operate on, xUSD empowers them with the benefits of a dollar-pegged token and consistent yield generation.

### Fully Collateralized

Each xUSD token is backed 1:1 by high-quality, liquid assets, ensuring full security and transparency for all users. xUSD consists of Sper strategies that buy ETH and hedge with a perp position.

### Secure Cross-Chain Compatibility with Chainlink CCIP

xUSD is designed to be a cross-chain asset, meaning users can hold and generate yield on any supported blockchain, offering flexibility and seamless integration into multiple ecosystems. No matter where users hold xUSD, it will generate real-time yield across chains, making it a powerful tool for earning passive income in any DeFi ecosystem.

xUSD utilizes advanced Chainlink [cross chain interoperability protocol (CCIP)](https://docs.chain.link/ccip#what-is-chainlink-ccip) technology, which is the most secure cross-chain tech available today.

### Arbitrum Minting

xUSD can be minted directly on Arbitrum, taking advantage of the network’s low fees and high efficiency for fast, cost-effective transactions.

### Effortless Yield

Simply holding xUSD in a wallet automatically generates yield, with no staking or locking required.\
The generated yields are distributed to xUSD holders via a [**rebasing mechanism**](https://docs.overnight.fi/core-concept/yield-mechanism-rebase).


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