XAI

XAI exists to grease Silo Finance, a lending protocol that isolates each market so a bad asset cannot poison the rest. Inside every Silo market, ETH and XAI act as shared bridge assets, and borrowers mint the dollar-pegged XAI by posting collateral above the value they draw. That over-collateralization, not a cash reserve, is what holds the soft peg: the token is a claim redeemed by repaying the loan through the protocol, with no issuer counter and no KYC. Launched by Silo in 2022, XAI lets a user collateralize once and borrow across the protocol's isolated pools rather than routing every trade through ETH. It is a purely onchain, Ethereum-based instrument whose stability rests on Silo's liquidations and market design, and its peg can drift with collateral values and protocol demand.