xPOSITION: A Non-Fungible Leveraged Long Position

xPOSITION: High-Beta Leveraged Long Position for Decentralized High-Leverage Trading

xPOSITION is a non-fungible, high-beta position, designed as a decentralized and capital-efficient instrument for gaining amplified exposure to on-chain assets. In its current implementation, the xPOSITION mechanism does not rely on flash loans unlike f(x) protocol. All bnbUSD minted during the position creation process is fully owned by the user, providing maximum flexibility for subsequent utilization.

xPOSITION is a non-fungible, high-beta leveraged long position, designed as a decentralized and capital-efficient instrument for gaining amplified exposure to on-chain assets. In its current implementation, the xPOSITION mechanism does not rely on flash loans. All bnbUSD minted during the position creation process is fully owned by the user, providing maximum flexibility for subsequent utilization.

Mechanism Overview

1. Collateral Submission

The user provides collateral (eg. slisBNB), which is used to mint bnbUSD and serve as the base collateral for the position.

2. Minting of bnbUSD

Based on the submitted collateral and the applicable LTV (Loan-to-Value), the protocol allows the user to mint a corresponding amount of bnbUSD. All minted bnbUSD belongs fully to the user and can be freely used.

3. xPOSITION Creation

Once collateral is submitted and bnbUSD is successfully minted, the xPOSITION is created. This position represents the user’s exposure to the underlying asset.

bnbUSD can be minted against various crypto collaterals, but only those approved by governance. To ensure the protocol’s safety, governance selects secure and battle-tested assets as eligible collateral.

In theory, any asset could be used as collateral, but it must first pass a governance vote. Additionally, each collateral type has a cap on how much bnbUSD can be minted against it — this limit is also set by governance.