# Motivation Blockchain foundations and crypto native firms such as DAO treasuries, crypto funds, and crypto OTC desks currently hold substantial reserves of stablecoins and other crypto assets. Notably, the DeFi total value locked (TVL) experienced a decline after Q2 2022, resulting in limited participation of most crypto native assets in the DeFi ecosystem. Conversely, traditional real-world assets like US Treasuries and Agency-backed MBS have regained prominence amidst rising inflation and subsequent interest rate hikes by central banks. As a result, the demand for high-quality fixed-income assets has surged, offering enhanced productivity and returns. Excellar endeavors to connect the worlds of DeFi and TradFi and offer the advantages of both to our users, who will have a unique opportunity to gain the flexibility, innovation, and accessibility of DeFi, while still benefiting from the stability, trust, and familiarity of TradFi. Our combined offering of real-world asset tokenization and an associated lending protocol provides enhanced and versatile access to income-generating assets and allows users to engage in other financial activities such as lending to create additional revenue streams and optimally allocate capital. # What is Excellar? Excellar is a fully-backed asset tokenization platform that allows users to put their crypto assets to work by participating in real-world asset markets.\ \ While we intend to offer a broad range of products in the long run, our first offering will be a token based on short-term US Treasury Bills, capturing the combined benefits of the ongoing attractive rate environment, deep liquidity, and stability of the underlying market.
# Use Cases & Benefits Excellar endeavors to bridge DeFi and TradFi, thus capturing the best of both worlds. * **Greater Accessibility** to real-world assets, anywhere from the ultra-liquid US Treasuries to otherwise isolated opportunities, which, along with fractional ownership, can pave the way to the democratization of investing for users across the world. * **Superior Transparency** as users will be able to see everything including holdings, income, and pricing, thus promoting trust in the investment process. * **Income Generation** will help users to build wealth and safeguard against inflation in a secure and low-risk way. Furthermore, through the integration with our lending platform xRepo, users can utilize their income-generating assets to borrow other supported crypto assets, paving the way for additional income streams and capital optimization. * **Composability** allows users to transfer tokenized fund interests on-chain through approved smart contracts and engage in financial transactions such as lending and trading. This will allow other developers to use the protocol as a building block in their applications, ultimately achieving a whole financial ecosystem that is compliant on-chain that is both secure and efficient. # Entities Excellar affiliate Delaware based limited partnership will act as a master fund. The Cayman Islands-based vehicle will serve as a feeder fund. The NJ based management company will be the investment adviser facilitating the purchases and sales of the underlying assets. # XUSG Excellar’s first offering will be XUSG, a token based on short-term US Treasury Bills, capturing the combined benefits of the ongoing attractive rate environment, deep liquidity, and stability of the underlying market.\ \ To track the performance and exposure of short-term US Treasury Bills, Excellar will invest in the Blackrock’s iShares Short Treasury Bond ETF (SHV), targeting US Treasuries that mature in less than one year. Advantages of using an ETF instead of individual issues are manyfold, including: * Diversification tends to minimize idiosyncratic risks and price dislocations associated with specific issues, such as basis risk surrounding Debt Ceiling flight-to-safety episodes. * ETFs generally have better liquidity and price transparency than the underlying bonds, especially during market stress as demonstrated by the 2020 Pandemic Crash. * ETF managers typically have better trade execution for the underlying bonds. # Asset Tokenization Upon passing AML/KYC screening, Excellar users can fund with supported stablecoins and receive XUSG tokens in return, which represents their ownership in the fund. In future, users will be able to transfer XUSG tokens between each other to effect changes in fund ownership, as well as use smart contracts to facilitate their financial arrangements such as by engaging in lending and trading activities with each other. XUSG tokens have transfer restrictions that will ensure they do not end up in the hands of anyone not approved as an investor in the fund. # Eligibility Criteria A user can open an account with Excellar as an investor from any country, except if you are a current U.S citizen or U.S taxpayer. All applications will be subject to our Know Your Customer (KYC), Anti-Money Laundering (AML) processes, and any local regulatory requirements. # Onboarding 1. Complete our KYC/AML process as an individual. 2. Review and sign the fund documents. 3. Provide a wallet address to be whitelisted on-chain. This wallet will be used to send in funds, receive fund tokens, and make redemptions. # Creation 1. User sends USDC to the fund’s smart contract. 2. The smart contract logs your subscription request and atomically (immediately) transfers the USDC to the fund’s account at Coinbase Custody. 3. Excellar’s management company will convert the USDC into USD at Coinbase, who will then wire the USD via one of their partner banks to the fund’s cash account at Clear Street. 4. XUSG tokens will be minted and issued to the user at the execution price based on the fund’s daily NAV. 5. Excellar’s management company will use the USD at Clear Street to purchase the ETF. 6. When the ETF pays out a dividend, Excellar’s management company will reinvest the dividend proceeds in the same underlying ETF. Unlike the ETF, XUSG itself does not pay out a dividend, but accumulates in value as the dividends are reinvested. # Redemption 1. User submits a redemption request by sending mUSG tokens to the fund’s smart contract 2. The smart contract logs your redemption request. 3. Excellar’s management company will either use its cash reserves or sell enough ETF shares at Clear Street to cover the redemption. XUSG tokens previously held by the user will be burnt. 4. Clear Street will wire the resulting USD to Coinbase, who will convert it to USDC. 5. USDC will be distributed to the user’s wallet to complete the redemption. # Calculations * XUSG Price = Net Asset Value ÷ XUSG Token Count Example: ![](/files/RULQlot0eGqJS91i2BCz) * Quantity of XUSG Issued = USDC Deposited ÷ XUSG Price ![](/files/RULQlot0eGqJS91i2BCz) * Quantity of USDC Redeemed = XUSG Quantity × XUSG Price # Service Providers In response to the widespread defaults of unregulated firms in 2022, Excellar will work only with well-established and highly-regulated third-party service providers and holds assets in bankruptcy-remote custodians. * Clear Street will be our Prime Broker to execute trade orders for and custody XUSG’s underlying ETF securities in its account at the DTC. * Coinbase will custody the fund’s stablecoin holdings and facilitate conversions between stablecoins and fiat. * NAV Consulting will be the independent fund administrator responsible for accounting and reporting. * Richey May will be the independent auditor responsible for periodic in-depth financial audits. # Why Stellar / Soroban? We will leverage the exclusive power of Stellar's Anchor Network to provide an efficient fiat on/off ramp. This means that users can easily convert their traditional currency into digital assets and vice versa. Also, Stellar is a tried-and-true blockchain offering faster, cheaper, and more secure transactions. It also ensures compliance with regulations governing fiat currencies by partnering with licensed financial institutions acting as network anchors. Thus, users can rest assured that their funds are safe and secure. # Governance Coming soon. # Legal Disclaimers and Disclosures All documents and contents of this website are created for the Stellar Development Foundation (SDF). The purpose of this website is to apply for an SDF grant and should not be construed as an offer of investment.\ \ CONFIDENTIAL–Not for Further Distribution. This document (presentation) is for potential clients only. Only qualified investors are permitted to read this document. This offering is not available if you are a current U.S citizen or U.S taxpayer.\ \ This document is for discussion purposes only and is intended as a preliminary summary. This document does not purport to be complete and is qualified in its entirety by reference to the more detailed discussions to be contained in the Fund’s offering documentation. The Investment Manager has the ability in its sole discretion to change all or any part of the strategy and parameters described herein without notice.\ \ The specific terms of an investment in the Fund will be subject to the offering documentation. Such terms may change from the time you receive this document and the time you receive the formal offering documentation. Before making an investment decision with respect to the Fund, potential investors must carefully read the formal offering documentation (including any relevant underlying agreements) and the related subscription documents regarding the Fund, and to consult with their tax, legal, and financial advisors.\ \ This document is being provided to you on a confidential basis solely to assist you in deciding whether or not to proceed with a further investigation of the Investment Manager and the Fund. Accordingly, this document may not be reproduced in whole or part and may not be delivered to any person without the consent of the Investment Manager.\ \ Nothing set forth herein shall constitute an offer to sell any securities or constitute a solicitation of an offer to purchase any securities. Any such offer to sell or solicitation of an offer to purchase shall be made only by formal offering documentation, which will include, among other things, a confidential offering memorandum, a limited partnership agreement and a subscription agreement. Such formal offering documentation will contain additional information not set forth in this document (including, among other things, certain risks of investing in the Fund), which will be material to any decision to invest in the Fund.\ \ No information is warranted by the Investment Manager or its affiliates or principals as to completeness or accuracy, express or implied, and is subject to change without notice. This document contains forward-looking statements, including observations about markets and industry and regulatory trends as of the original date of this document. Forward-looking statements may be identified by, among other things, the use of words such as “targets,” "expects,“ "anticipates,“ "believes,“ or "estimates,“ or the negatives of these terms, and similar expressions. Forward-looking statements reflect the Investment Manager’s views as of such date with respect to possible future events. Actual results could differ materially from those in the forward-looking statements as a result of factors beyond the Investment Manager’s control.\ \ You are cautioned not to place undue reliance on such statements. There is no obligation on the part of the Investment Manager to update any of the forward-looking statements in this document.\ \ This document should only be considered current as of the date of publication without regard to the date on which you may receive or access the information. The Investment Manager maintains the right to delete or modify information without prior notice. Charts, tables and graphs contained in this document are for illustrative purposes only and are not intended to be used to assist you in determining which securities to buy or sell or when to buy or sell securities. Statements made herein that are not attributed to a third-party source reflect the views and opinions of the Investment Manager.\ \ The past performance of the Investment Manager, its principals, members and/or employees is not indicative of future returns. There is no guarantee that the Investment Manager will be successful in achieving the Fund’s investment objectives and the Fund’s investment results may vary substantially. An investment in the Fund will involve a high degree of risk, including the risk of complete loss of invested capital and is only suitable for sophisticated investors who have the financial ability to withstand any such losses.\ \ The risk management practices and methods described herein are for illustrative purposes only and are subject to modification. No assurances can be given that the risk management practices described herein will be adequate to safeguard against losses. Targets are provided solely as a guide to current expectations. There is no guarantee that the Fund will achieve any of the targets or that there will be a return on capital. # Privacy Policy ## Safety and Security Excellar is committed to safeguarding your personal information. We do not sell users’ non-public personal information to anyone and only share it as described in this notice. ## Information Collected When you interact with Excellar or use Excellar’s services and products, the non-public personal information we collect to perform the function may include: * Contact Information. * Financial Information, such as cryptocurrency wallet information. * Transaction Information, such as type of transaction, transaction amount, and timestamp. * Online Identifiers, such as geo location/tracking details, browser fingerprint, operating system, browser name and version, and/or personal IP addresses. * Usage Data, such as user preferences and other data collected via cookies and similar technologies. * Information from third parties as required or permitted by applicable law, including public databases, credit bureaus & ID verification partners. * Other general information that we may obtain about you such as demographic information. ## Disclosure Policy We may share your non-public personal information in the course of carrying out necessary functions provided, only under the following circumstances: * To comply with our legal obligations.. * With service providers. * With your knowledge and consent. * During a change to our business.