Not financial advice — just the facts!
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Crypto requires great tolerance to risk. Always Do Your Own Research.
As for XCN… I’ve read the whitepaper, so you don’t have to!
In the ever-evolving world of decentralized finance (DeFi), staying ahead requires innovation, resilience, and an unwavering commitment to trust and transparency. The Onyx Protocol and its native currency, Onyxcoin (XCN), have demonstrated all of these qualities. With its decentralized stablecoin, VUSD, Onyx is not only reshaping how we think about cross-border payments and lending but also positioning XCN for an explosive rise — potentially hitting a $1 billion market cap.
But before we dive into why VUSD is such a game-changer, let’s not forget the remarkable resilience of the Onyx team. Known previously as Chain, the platform endured a significant hack, which could have been a devastating blow to any project. However, instead of folding under pressure, Chain regrouped, fortified its security measures, and re-emerged as Onyx, stronger than ever. This recovery wasn’t just impressive — it was a testament to their leadership’s dedication to long-term success and the robustness of the protocol they were building.
### What Sets VUSD Apart?
In a market flooded with stablecoins, what makes VUSD stand out? The answer lies in its on-chain reserves. Unlike centralized stablecoins like USDC or TUSD that rely on off-chain reserves (often stored in traditional banks), VUSD’s reserves are fully verifiable on the Ethereum blockchain. This transparency builds immense trust within the DeFi community, especially at a time when centralized stablecoins face growing regulatory scrutiny.
VUSD’s reserves are held in Externally Owned Accounts (EOAs), allowing users to monitor its backing in real time. This on-chain transparency is critical in today’s decentralized world, where users demand not just stability but also trust. When you hold VUSD, you can see the reserves backing it, eliminating any doubt or fear about the coin’s solvency.
Moreover, VUSD is deeply integrated into the Onyx Protocol’s ecosystem. This is not just a stablecoin for trading; it’s a cornerstone of a decentralized lending platform. Users can deposit VUSD into the protocol to earn yield or borrow it against their other digital assets. This tight integration ensures VUSD remains in constant circulation, driving demand for both the stablecoin and the broader Onyx ecosystem.
### VUSD’s Role in Propelling XCN to $1 Billion
Now, let’s talk about the potential for XCN, Onyx Protocol’s native utility and governance token, to reach a $1 billion market cap.
The success of VUSD is directly tied to the demand for XCN. Here’s why: as more users flock to the Onyx Protocol to take advantage of VUSD’s transparency and usability in DeFi lending, the total value locked (TVL) in the protocol will grow. As TVL increases, so will the demand for XCN, which is required for governance, staking, and participating in the protocol’s decision-making processes.
What sets Onyx apart from other platforms is its robust governance model, powered by XCN holders. Every change in the protocol — whether it’s modifying interest rates, adding new assets, or launching new features — requires on-chain voting, and to participate, users must stake XCN. This creates a feedback loop: the more active the Onyx ecosystem becomes, the more XCN will be needed, reducing its circulating supply and driving up its price.
Furthermore, VUSD is primed for use in cross-border transactions, tapping into a massive global market. With its stable value and low transaction costs, VUSD can become the go-to currency for businesses and individuals looking to avoid the high fees and delays of traditional international banking. As VUSD adoption grows, so too does the need for a strong governance system — and this is where XCN shines.
### A Resilient History: Overcoming the Chain Hack
It’s impossible to talk about Onyx and XCN’s potential without acknowledging the journey they’ve been on. When the platform was still known as Chain, it suffered a major hack, a setback that could have spelled the end for many blockchain projects. However, the Onyx team did something few others have done — they regrouped, fortified their security infrastructure, and rebuilt the platform stronger than ever.
This resilience is more than just a badge of honor. It demonstrates that the Onyx team can weather storms and emerge more robust than before. This is crucial for investors and users alike, as it signals long-term viability and leadership that can be trusted even in the face of adversity.
### Why XCN Has $1 Billion Potential
Here’s why I believe XCN is primed to hit a $1 billion market cap:
1. VUSD’s Transparency and Utility: The market craves stablecoins with transparent backing. As VUSD becomes a preferred stablecoin in DeFi, the Onyx Protocol will see increased use, leading to more staking and governance participation with XCN.
2. Decentralized Lending and Cross-Border Transactions: As more users turn to VUSD for both lending and cross-border payments, Onyx Protocol’s liquidity will grow, and XCN’s utility in governing the platform will follow.
3. Scarcity Through Staking: As the Onyx ecosystem grows, more XCN will be locked up in staking contracts to gain governance rights. This will reduce the available supply of XCN on the open market, driving price appreciation.
4. Impressive Recovery: The recovery from the hack when Onyx was still Chain proves that the team has what it takes to build something resilient and long-lasting. This credibility boosts investor confidence in both the protocol and XCN.
### The Path Forward
Onyx Protocol has already demonstrated its ability to innovate and recover from setbacks. Now, with VUSD poised to revolutionize stablecoins through transparency and integration into DeFi, the stage is set for XCN to achieve exponential growth**. With its utility in governance and staking, coupled with the increased demand driven by VUSD’s adoption, XCN has the potential to become a leading DeFi token and reach a $1 billion market cap.
The future of decentralized finance is transparent, and Onyx Protocol — with VUSD and XCN leading the way — is at the forefront of that revolution.
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As always, Thanks for reading!
The Road to $1 Billion: How VUSD Can Propel XCN to New Heights was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.