XUSD

BabelFish's XUSD is less a stablecoin than a translation layer for other stablecoins. Built on Rootstock, the Bitcoin sidechain, it is minted one-to-one against a hedged basket of accepted dollar stablecoins pulled from Ethereum, BNB Chain and Rootstock, aggregating their liquidity into a single fungible token. It became the largest stablecoin on Rootstock by acting as what its DAO calls a trustless translation device, letting users and protocols swap between underlying dollar tokens at a fixed rate. Redemption is fully permissionless: any onchain holder can withdraw the underlying basket stablecoins through the contracts, with no accounts, KYC or user tracking, and there is no company standing behind it. The protocol is governed by holders of its FISH token. That design spreads risk across many issuers, but it also means XUSD is only ever as sound as the basket standing behind it.