Xave Finance (pronounced “Save Finance”) aims to enable financial services companies (such as “fintechs” and neobanks) to leverage DeFi for actual use cases, such as real time remittance transfers and high yield consumer savings. Xave does this by building an FX accurate AMM via a custom “FXPool” now and eventually a stablecoin lending market that shares liquidity with the Balancer V2 Vault via a BoostedFXPool.
Pasting links in reply due to new user limit
Xave has deployed its first custom pool - the FXPool - that brings FX accurate stablecoin exchange to the Balancer DAO. The first FXPool deployed is an xSGD:USDC pool.
StraitsX, the licensed issuer of fiat backed stablecoins xSGD and xIDR, will be helping to build use cases for this pool to enable liquid FX trades and eventually work towards instant, on chain cross border remittance between SGD-IDR and SGD-PHP. Ripple has famously tried to achieve this “on demand liquidity” but stablecoin FX is the true 10x improvement to traditional financial rails. This is especially true as stablecoin rails are able to offer end to end remittances at <1 % per transaction (if anyone is interested, we have a real world cost breakdown). This real world use case will bring sustainable fee generation via real economic activity to the BalancerDAO. Xave and StraitsX would like to work with the BalancerDAO to incentivize this initial pool with BAL rewards towards a real world use case in DeFi.
Governance will be done via snapshot for now. Later on Xave’s own ve governance structure will be deployed (forked from veBAL). Current admin of the XSGD:USDC FXPool is the team’s ops 3/5 multisig 0x74042CE43D1e74FF5627B1e9ff2ee950251b5Db4 (Polygon), until the community is ready to take on ownership of the Xave protocol.
The xSGD:USDC FXPool utilizes a Chainlink oracle to allow FX accurate swaps for a predetermined range of the bonding curve. Beyond this range (called the “beta region”), LP ratio then dictates the price of trades. At this point, arbitrageurs are incentivized by significantly cheaper fees to trade the pool back to the “beta region” where FX price is followed. LPs are also incentivized to keep liquidity in the pool especially while it is outside the “beta region”, due to existing parameters that yield much higher fees charged to traders swapping the pool away from the “beta region”. See reply for linked docs to learn more
v2 Final Audit - Xave Finance
⅗ operations multisig that owns contracts until contracts are “battle tested” and community is ready to takeover
xSGD is an asset backed stablecoin, fully collateralized and issued by StraitsX - a licensed and regulated Singaporean entity by the Monetary Authority of Singapore (MAS)
USDC is an asset backed stablecoin issued by Centre
This pool consists of the first native POS XSGD issued token by its’ issuer StraitsX | Payments Infrastructure for Digital Assets who will concentrate liquidity for real world use cases dependent on capital efficient on chain FX to support cross border settlement in the Southeast Asian region ++.
Deposit/Withdraw/Swap: Xave (Switch to Polygon network)
Polygon Root Gauge address: PolygonRootGauge | Address 0xe42382D005A620FaaA1B82543C9c04ED79Db03bA | Etherscan