We have two cryptocurrencies at the core of our payment solution: a USDX token and an LHT coin. One is made as means of payment, the other is an altcoin. Why our ecosystem requires two types of crypto? How are they interconnected? How could you use them? We’re answering these questions in this article
In the previous post we focused on our product - the USDX Wallet app. Our team came up with the payment solution which addresses most pressing pains of crypto owners and enthusiasts. We discussed its main features and means of usage. Now let’s look inside an ecosystem around the product. There are two core parts - aside from blockchain technology - two stablecoins: a USDX token and an LHT coin.
USDX Token
USDX is a stablecoin that is issued on top of Lighthouse Blockchain. The blockchain is able to issue USDX tokens using LHT coins as a collateral. Smart contract ensures each USDX token is collateralized with at least 200% worth of LHT coins according to LHT’s current market price. In other words, at least 200% backing of each USDX by LHT is stable: if the price of LHT drops, Lighthouse Blockchain will add more LHT coins to comply with the terms of a smart contract. If the price of LHT increases, it means that collateralization of USDX becomes more than 200%. In case of over-collateralization we can decrease it back to 200% and issue more USDX.
USDX token was created to be used in all types of payments. That’s why it has been made stable with price pegged to the U.S. dollar. Person-to-person transactions are fee-free and easy via the USDX Wallet app where the following operations are available:
- Person-to-person payments;
- Buying goods;
- Service and content payments;
- Fund transfers;
- Hedging.
Features:
Predictable. As a stablecoin, USDX is immune to swings and speculations in the cryptocurrency market. It’s pegged to the US dollar at a 1:1 ratio via a smart contract.
Stable and safe. Due to its stability, USDX currency is particularly useful as a means of payment and savings. Unlike cash, it can't be lost or damaged.
Exchangeable. USDX currency could be bought with BTC, ETH and 50+ Altcoins and sold at online exchanges (after listing on crypto exchanges).
Accessible. USDX could be bought directly from a USDX Wallet app - quick and safe alternative to traditional methods of transactions and payments.
LHT Coin
LHT is a digital asset with a limited supply: the maximum amount of LHT coins is one billion, i.e. 1,000,000,000 coins. This is reflected in Lighthouse Block Explorer. LHT coins will be gradually sold on exchanges and via the USDX Wallet app to prevent extreme LHT volatility. Smart contract ensures each USDX token is collateralized with at least 200% worth of LHT coins according to LHT’s current market price. Please refer to Monetary Policy section of the White Paper for more detailed description of an LHT coin functionality.
The market price of LHT is calculated as a median value across all LHT prices on exchanges it’s listed on. An LHT price at any given exchange is actually a Mid Market Price or an average of the current bid and ask prices being quoted. The most amazing feature of the LHT token is how its behavior opposes that of the overall cryptocurrency market. This makes it a valuable cryptocurrency trading instrument and a profitable asset. Here is how:
- The cryptocurrency market drops. During the bear trend every crypto holder wants to convert his/her assets into a stable currency. Conversion into fiat may take a long time; moreover, exchanges charge considerable withdrawal fees.
- High demand for USDX. Unsurprisingly, in a situation such as this there will be a high demand for USDX as it is a stable cryptocurrency. Eventually, all the available USDX will be sold.
- Buying LHT to get more USDX. To get more USDX, people will need to buy LHT because it's the only way to force the blockchain to issue more USDX currency. Eventually, all the available USDX will be sold. If there are no reserved tokens in the distribution fund, the only way to get more USDX is to buy LHT on the market/exchange.
- Making a profit or saving funds. People then can exchange the LHT they have bought to USDX or, if they want to profit from the situation, they can keep their LHT and sell them later at a higher price.
LHT coins are available via the USDX Wallet app. The app allows to buy them with Bitcoin, Ethereum, Ripple, EOS, Bitcoin Cash, NEO, Dash and other Altcoins. LHT coins are sold according to the mid-market price without any additional fees.
LHT coins and USDX tokens are based on Graphene - a third generation software for the cryptographically secure decentralized ledgers. This technology has been delivering high performance, stability and security for 5+ years. Furthermore, Graphene outperforms other blockchain in terms of speed: it can process 100,000 transactions/second. Both of our cryptos are not mineable. Their issuance does not consume terawatts of electricity. Instead, the total amount of LHT coins is set on Lighthouse Blockchain initiation; then USDX tokens are issued using LHT coins as collateral.
Got a question about crypto payments? Contact us via Telegram chat: https://t.me/USDXwallet
Check our website for demos and Whitepaper: https://usdx.cash/